Boeing’s long-awaited aircraft may have just cleared a significant regulatory hurdle. According to a report from the Air Current on Friday, the Federal Aviation Administration has begun crucial certification flights for the company’s 777X plane. Deutsche Bank suggests this development could signal a revenue boost for the struggling planemaker.
“This marks a major step forward in the path toward certification and ultimately first deliveries for 777X, coming over four years since the first flight, compared to typical milestone gaps from first flight to TIA typically clocking in at less than six months,” analyst Scott Deuschle wrote in a client note.
The major obstacle to Boeing delivering more planes to customers has been increased FAA scrutiny and a production slowdown imposed after a door plug fell off a 737 Max 9 plane in January. Additionally, some models still need to be certified by the FAA before they can be delivered. The 737 Max 10 and the larger 777X are among the planes still awaiting certification.
If the start of the FAA certification flights means the 777X is nearing full clearance from the regulatory process, Deuschle estimates that Boeing’s 20-odd planes in storage could generate around $2 billion in revenue by the end of next year. This would be significant, considering Boeing’s latest annual report indicated it made about $78 billion in 2023.