Barclays investment bank downgraded Boeing after a survey of 1,765 fliers points to diminished trust in the 737 Max.
Boeing 737 MAX airplanes are parked on the tarmac at the Boeing factory in Renton, Wash., in March. By Aaron Gregg Aaron Gregg Reporter covering the defense industry, commercial aviation and government contractors. Email Bio Follow May 7 at 9:56 PM In the weeks since Boeing 737 Max jets were grounded worldwide following a pair of catastrophic crashes that killed 346 people, the company has focused its energy on returning the embattled new jet to service.
But a survey released Tuesday suggests that the flying public could prove to be the plane’s toughest critics. A steady stream of negative headlines has sapped confidence in the Max’s safety credentials and investors are beginning to worry that customers might avoid the new jets even after regulators return them to the air.
Only 20 percent said they would fly on a Max as soon as the grounding order is lifted, and 52 percent said they would rather fly on another type of aircraft.Barclays downgraded its rating for Boeing stock on the basis that “a large portion of fliers are likely to avoid 737 Max for an extended period beyond when the grounding is lifted,” Barclays analysts wrote in a note to investors. Boeing stock dropped by almost 4 percent Tuesday, tracking along with a broader market sell-off.
“We at Boeing are sorry for the lives lost in the recent 737 MAX accidents,” Boeing CEO Dennis Muilenburg wrote in early April. He later wrote: “I cannot remember a more heart-wrenching time in my career with this great company.”
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