Carriers face a glut of aircraft when the Boeing 737 MAX returns
Boeing CEO Dennis Muilenburg discusses the mistakes made by Boeing with the 737 Max on the anniversary of the first crash ahead of his testimony before Congress.
When the Boeing 737 MAX gets cleared to return to service, airlines that have had to juggle schedules and equipment may be facing oversupply, according to analysts.
Boeing has continued manufacturing the airplane while it has been grounded since March, following the two fatal accidents.
Deliveries are expected to rise by 40 percent to 70 units a month when approved to return to service, according to Reuters.
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Market pressures before the crashes, along with the increased deliveries could make it hard to absorb the jets, according to.Rob Morris, global head of consultancy at UK-based Ascend by Cirium.
"Next year is the challenge. When the dam breaks and the MAX starts to flow, there are going to be a lot of aircraft," Morris told a briefing ahead of the Airline Economics Growth Frontiers conference on Monday, Reuters reported.
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However the flood of planes won't be immediate. It is estimated it would take Boeing 18 months or longer to deliver the parked aircraft.
Following software updates and other safety features, Boeing has been looking at the end of the year to return the 737 MAX to service in the United States.
In Europe, it may take until the first quarter of 2020.
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Analysts say More than 300 MAX aircraft have reportedly been produced since flights were banned and deliveries frozen.