With the Boeing 737 MAX expected to take flight in European skies at the end of 2020, General Electric Company (GE) shares enjoyed a steep rise of more than 6% heading into the new week. This increase comes because of GE’s aerospace division being placed in charge of the construction of engines for this aircraft.
The 737 MAX was initially taken off of flight schedules last March due to being involved in two fatal accidents, killing a total of 346 people. Since then, Boeing has performed several software and hardware modifications in order to improve the aircraft’s in-flight control system.
“Our analysis is showing that this is safe, and the level of safety reached is high enough for us,” European Union (EU) Aviation Safety Agency Executive Director Patrick Ky told Bloomberg in an interview.
While the aerospace industry suffered a 44% top-line hit in the second quarter, FactSet analysts are expecting a further 39% decline in the third quarter. Given this information, many industry experts remain hopeful that the return of the 737 MAX will help rejuvenate the industry and increase flight capacities and accommodate an increase in demand.
