(28 November 2019)DAILY MARKET BRIEF 1:Boeing Faces New Obstacle in Returning 737 MAX Jets to Service

In the latest hurdle confronting Boeing Co.'s bid to get its grounded 737 MAX fleet back in the air, federal regulators now intend to inspect and sign off on every jet individually before delivery to airlines. The move, spelled out Tuesday by the Federal Aviation Administration in a letter to the plane maker, signals that resuming MAX flights will be more complicated and perhaps time-consuming than previously projected. The FAA stripped Boeing of longstanding authority to perform such routine, pre-delivery safety checks and signoffs of MAX planes on its own, amounting to another public pushback by the agency to company pressure to accelerate the reinstatement. It isn't clear how much of a delay the change is likely to create. Some of the fallout is symbolic, while the eventual impact will partly depend on how effectively Boeing prepares jets removed from service and partly on the availability of FAA employees to process steps to get them back in the air. The decision comes as industry officials world-wide increasingly question whether initial MAX deliveries are probable before year's end. In an email, a Boeing spokesman said: "We continue to work with the FAA on the safe return to service of the MAX fleet."

By Vincent Mivelaz