CCTV Transcripts

CCTV Script 05/11/19

— This is the script of CNBC's news report for China's CCTV on November 5, 2019, Tuesday.

The latest announcement from the European aviation safety agency could go a long way towards easing some of the recent pressure on Boeing. European regulators are expected to approve the return of the Boeing 737MAX to the European market in January, but preparations by national authorities and airlines could take up to two months, so overall it should be in the first quarter, agency chief Patrick Ky said Monday.

Boeing has done a lot to improve the plane's operating system, but more needs to be done. In addition, the European aviation safety agency will make its final decision after conducting its own simulators and flight tests. Despite the positive signals from Europe, Boeing faces intense pressure in the United States. Last week, congressional hearings turned into an indictment of Boeing and its CEO, Dennis Muilenburg, calls are growing for him to step down. The crash of two Boeing 737MAX planes also put pressure on the FAA, former head of the national transportation safety board told CNBC that the FAA should share the blame with Boeing.

Jim Hall, former chairman of the National Transportation Safety Board

"I think they should ( share the blame ), the us, "

I believe they should, We need accountability introduced to back our system, in the aviation system, unfortunately, a lot of that has been delegated in another part to the government, to the manufacturer, without the oversight, what do the American people pay for? the American people pay for their flights over 3 billion a year, it goes in to provide air service and airport and aviation system, and Boeing and others can utilize it, so.. the system is broken.

All this will make American regulators more cautious about allowing the 737MAX to go around. Boeing had been hoping for a go-around by the end of the year, but most analysts avoided being overly optimistic, instead pinning their hopes on February or March. By contrast, airlines have been more cautious. Ryanair, an Irish budget carrier and a major customer of Boeing's 737MAX, said on Monday that it did not expect Boeing to deliver its 737MAX until March and April next year, which could further pressure the busy summer air business and further drag on its results.

Ryanair's first order for the 737MAX was due in January, but has faced several delays, it believes Boeing can only deliver 20 flights, instead of 30 in next summer.

A go-around is on the agenda, but Boeing still has a tough job to do to regain trust, with different surveys showing that passengers are hesitant to choose a Boeing plane.

The flight attendants' union, which represents American and united airlines, also says Boeing needs to answer more safety questions. Despite this, market and investor confidence in Boeing has not been completely destroyed, Ryanair's CEO told CNBC that they still have confidence in Boeing's safety.

Michael O'Leary,Ryanair CEO

"The manufacturers have a duty when they produce new products, new software, to educate the airlines and pilots as to the existence of that software and what it does, but this is still a great aircraft,"

On the other hand, Boeing CEO experienced a hard time in the congress hearing last week though, seen from Boeing's stock price, investors still have confidence in Boeing. And the statement from European aviation safety agency is expected to fuel Boeing's stock price up. We will keep an eye on the go-around details and schedule.