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FAA Clears Boeing's 737 MAX To Fly Again


20 months after the Boeing 737 MAX was grounded following two fatal crashes, the U.S. Federal Aviation Administration's Administrator Steve Dickson signed an order yesterday giving the 737 MAX the go ahead to return to service.


The FAA also issued a directive detailing the design changes that operators of the 737 MAX need to be make before they can fly again. The FAA must approve pilot training program changes for the 737 MAX for each U.S. airline operating the aircraft. Airlines that have had their 737 MAX aircraft parked must take the required maintenance steps in order for them to fly again.


"We've done everything humanly possible to make sure these types of crashes do not happen again," Dickson told Reuters. "I feel 100% confident."


Boeing praised the FAA's decision while laying out additional steps the company is taking to strengthen its focus on safety and quality such as an organizational alignment that includes a Product & Services Safety unit as well as process enhancements.


"We will never forget the lives lost in the two tragic accidents that led to the decision to suspend operations," Boeing CEO David Calhoun said. "The FAA's directive is an important milestone, we will continue to work with regulators around the world and our customers to return the airplane back into service worldwide."


However, not everyone is pleased with the FAA's decision as U.S. Senators Richard Blumenthal and Edward Markey called the move premature.


"Allowing these planes to fly again is a premature leap of faith," the senators said in a statement. "The FAA's directive to unground 737 MAX aircraft fails to address the larger systemic issues at Boeing and the FAA that led to the deaths of 346 people."

Shares of Boeing jumped more than 6% on the news before finishing the day lower. Despite being up more than 100% from the March low, shares of Boeing are still down more than 50% from their March 2009 all-time high, which was when the FAA grounded the 737 MAX.


While the news is encouraging for Boeing, the company still has a long way to go to regain the trust of passengers and make up for the damage that the scandal has done to the company from a financial perspective.


Leftover Crumbs

  • Mortgage demand rebounds. Following a drop over the previous few weeks, mortgage applications to purchase a home jumped by 4% last week and are now 26% higher than the same period a year ago, according to the Mortgage Bankers Association’s seasonally adjusted index. Applications to refinance a home fell by 2% last week yet remain 98% higher than the same period last year as mortgage rates ticked slightly higher.

  • Apple unveils new program for developers. Apple introduced the App Store Small Business Program yesterday, which gives developers reduced commission on paid apps and in-app purchases. Developers who have earned less than $1 million over the last twelve months qualify for the program and the reduced 15% commission. "We're launching this program to help small business owners write the next chapter of creativity and prosperity on the App Store, and to build the kind of quality apps our customers love," Apple CEO Tim Cook said.

  • Unilever has high hopes for plant-based foods. Unilever said it hopes to increase its annual plant-based meat and dairy alternative sales to €1 billion in five to seven years. Unilever is anticipating €200 million in sales from plant-based foods this year. "As one of the world's largest food companies, we have a critical role to play in helping to transform the global food system," president of Unilever's foods and refreshment division Hanneke Faber said. "It's not up to us to decide for people what they want to eat, but it is up to us to make healthier and plant-based options accessible to all."

  • Home Goods to launch online store. TJX Companies announced HomeGoods will get a dedicated e-commerce website late next year as its stores, including TJ Maxx and Marshalls, see traffic decline amid the pandemic. Customers are currently only able to purchase gift cards on HomeGoods' website. "To both leverage our strength in the home category and capitalize on our market share growth opportunities, we are pleased to share that we plan to rollout e-commerce on HomeGoods.com later next year," TJX CEO Ernie Herrman said.

  • Apple settles "batterygate" scandal. Apple has agreed to pay $113 million to settle allegations the company slowed down older iPhones once batteries deteriorated. As part of the settlement into the investigation, which was brought by 34 states and the District of Columbia, Apple won't be required to admit "any liability, fault, or wrongdoing." "Big Tech must stop manipulating consumers and tell them the whole truth about their practices and products," Arizona Attorney General Mark Brnovich said.