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Boeing Is Delivering 737 MAX Planes Again

By Lou Whiteman - May 19, 2021 at 5:04PM

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The plane was grounded while Boeing worked out a fix for a potential electrical issue.

Boeing (BA -3.42%) has reportedly resumed 737 MAX deliveries after receiving regulatory approval for a fix to a potential electrical grounding problem.

The company halted deliveries on the plane last month after a potential electrical issue was found. While the problem was always considered minor, the optics for Boeing were not great. The 737 MAX was grounded from March 2019 until November 2020 due to separate issues involving the airplane's control systems.

A Boeing 737 MAX in flight.

Image source: Boeing.

Last month, airlines took a lot of 737 MAX airplanes out of service while Boeing explored the extent of the electrical problem, which was discovered in the cockpit's backup power control unit on some recently built planes.

Boeing is now trying to work through an inventory of planes that were built, but not yet delivered, during that longer grounding period. On Wednesday, Reuters reported that Boeing had the green light from the Federal Aviation Administration to get the planes airborne again.

Boeing burned through nearly $20 billion in cash in 2020 due to issues with its planes and the impact of the pandemic on airlines. The 737 MAX, once considered a candidate for the best-selling aircraft of all time, still makes up a major portion of the company's backlog. Boeing's path to turning cash flow positive relies on the company ramping up deliveries as soon as possible.

Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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