Boeing’s long-awaited aircraft may have cleared a significant regulatory obstacle. According to The Air Current, the Federal Aviation Administration (FAA) has started key certification flights for Boeing’s 777X plane. Deutsche Bank believes this could lead to a 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 4 years since first flight, versus typical milestone gaps from first flight to TIA typically clocking in at less than 6 months,” analyst Scott Deuschle wrote in a note to clients.
The primary hurdle for Boeing in sending 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 FAA certification before delivery, including the 737 Max 10 and the larger 777X.
If the FAA certification flights indicate that the 777X is close to full regulatory clearance, Deuschle suggests that the approximately 20 planes Boeing has in storage could generate $2 billion in revenue by the end of next year. This would be a significant boost, considering Boeing’s latest annual report listed its 2023 revenue at around $78 billion.