May 5 Disclosure Could Raise Cost To Put 737 MAX Debacle Behind Boeing

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May 5 Disclosure Could Raise Cost To Put 737 MAX Debacle Behind Boeing
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Why did Boeing wait so long before disclosing that a 737 MAX cockpit warning was not working—and how much more will that delay cost Boeing shareholders?

Lawyers could use Boeing's Sunday announcement to raise that cost. In a May 6 interview, Richard Aboulafia, Vice President, Analysis at Teal Group, said"This issue doesn’t cost the company anything from a technical standpoint in developing a fix, But I’m certain lawyers will use it against them in which ever lawsuits develop."

In 2017, within several months after beginning 737 MAX deliveries, engineers at Boeing identified that the 737 MAX display system software did not correctly meet the AOA Disagree alert requirements...When the discrepancy between the requirements and the software was identified, Boeingfor determining the appropriate resolution of such issues.

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