Boeing’s long-in-development aircraft, the 777X, might have just cleared a significant regulatory hurdle. According to The Air Current, the Federal Aviation Administration (FAA) has commenced crucial certification flights for the 777X. Following this update, Deutsche Bank predicts a potential revenue boost for the struggling planemaker.
“This marks a major step forward in the path toward certification and ultimately first deliveries for 777X, and comes over four years since first flight, versus typical milestone gaps from first flight to TIA typically clocking in at less than six months,” stated analyst Scott Deuschle in a note to clients.
Boeing has faced heightened FAA scrutiny and a production slowdown since a door plug fell off a 737 Max 9 plane in January. Additionally, several models still require FAA certification before they can be delivered. These include the 737 Max 10 and the larger 777X.
If the 777X’s certification flights indicate it is nearing full regulatory clearance, Deuschle suggests the roughly 20 planes Boeing has in storage could potentially generate $2 billion in revenue by the end of next year. This would be a welcome development, considering Boeing reported about $78 billion in revenue for 2023.