The software fix for Boeing Co.’s 737 Max models may end up costing the Chicago-based aircraft manufacturer billions of dollars as it redesigns a computerized flight-control system on hundreds of jets sitting idle around the world.
The fixes alone for the revamped version of Boeing’s single-aisle workhorse 737 could cost the company around $500 million if everything is resolved in six to eight weeks, according to Canaccord Genuity analyst Ken Herbert.
Delivery delays and reimbursements to airlines for flight disruptions would add another $2 billion in lost cash flow each month the planes are kept on the ground by regulators, Herbert said. Boeing could make much of that money back if deliveries resume promptly.
