Boeing (NYSE: BA) stock rallied sharply off its daily lows on Friday as the FAA cited a more optimistic timetable for the MAX’s return.
Surprising investors, this change of tone comes after a tumultuous week where even President Trump attacked the company.
Despite the good news, the consumer and not the government will decide the long-term outlook for BA.
Boeing stock recovered sharply on Friday to close the week on a positive note as the FAA called U.S. airline executives to inform them the 737 MAX could be set to return to service sooner than mid-year. Unfortunately for enthusiastic BA bulls, pleasing a federal agency is going to be a cakewalk compared to winning back the public’s trust.
Unfortunately, as is. often the case where companies lack competitors for structural reasons, complacency set in. Whether you blame the FAA, the monkeys, or the clowns , they all played a role in the horrific and avoidable 2019 MAX disasters. As further issues have emerged with the MAX, it’s clear the FAA failed in their job to correctly protect the consumer, as Boeing employees admitted to covering them up .
Now, realizing that the wheel is broken, Boeing, the FAA, and the airlines are making a push to ensure that things get back on track, even as further revelations from the past emerge to damage the 740 ‘s legacy . Additional pressure is also being applied, as Moody’s has Boeing’s credit rating on downgrade watch