Boeing to Recommend 737 MAX Flight-Simulator Training for Pilots

Boeing previously had stated that it wouldn't require simulator training.
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A report said Boeing (BA) - Get Report was reconsidering its previous stance and will recommend that 737 MAX pilots undergo simulator training ahead of the relaunch of the beleaguered vessel.

Sources told Bloomberg that the plane maker has begun notifying regulators and airlines of the decision as the company explores modifying simulators of an older 737 model in order to train pilots.

This is a reversal from the company’s previous stance that pilots who trained on the older 737 simulator only needed additional computer-based instruction in order to operate the newer MAX version.

The MAX has been grounded globally since the spring of 2019 following a second fatal flight in March in Ethiopia, which occurred five months after 737 MAX flight out of Indonesia also crashed.

Boeing announced the departure of former CEO Dennis Muilenburg on Dec. 23 amid the fallout from the grounding. Greg Smith, the company's chief financial officer, is serving as the company’s interim CEO before David Calhoun takes over on a permanent basis this month.

United Airlines (UAL) - Get Report announced in December that it will be grounding the 737 MAX until at least June, about two months longer than rivals Southwest Airlines (LUV) - Get Report and American Airlines (AAL) - Get Report plan to keep the jet grounded.

American said Monday it reached an agreement over compensation from Boeing related to the grounding of the 737 MAX jet.

American didn't disclose how much it would be receiving under the deal but said it would be compensated over several years. The company, however, did say it would give $30 million of the settlement to employees as profit-sharing.

The carrier had 24 MAX jets in its fleet at the time of the grounding and was supposed to have 40 by the end of last year, according to The Wall Street Journal. American has said the grounding would decrease its 2019 earnings by $540 million.

Boeing shares pared some of Tuesday's gains but remained up 1% to $337.08.