Boeing’s (NYSE:BA) Chief Executive Officer Dennis Muilenburg is expected to be grilled on Monday during the company’s first confrontation with shareholders since the two crashes of its 737 MAX model.
Since the two Boeing 737 MAX crashes, airlines and governments across the globe have grounded the model. Investigations were triggered into the accident worldwide and the delivery of the jets to various airlines has stopped.
Dennis Muilenburg will face the task of restoring confidence in the company’s investors amid the aircraft’s health and safety concerns.
Earlier this month, the company said that the global grounding of the 737 MAX jets will set Boeing back by over $1 billion. This is a significant contrast compares to the company’s last update in January which included plans to introduce over 900 jet aircrafts in 2019, in addition to increasing sales and profits.
Airlines have also suffered from the grounding of the 737 MAX fleet. Last week the U.S’s leading airline based on passenger traffic, American Airlines (NASDAQ:AAL), estimated that the grounding of the model will impact its pre-tax earnings for 2019 by roughly $350 million.
Additionally, travel company Tui (ETR:TUI1) said that the grounding could cost it as much as €300 million as it sought to arrange alternative plans for its affected customers. Tui also underscored the uncertainty that prevails regarding if the Boeing 737 MAX will ever return to flight.
According to Reuters, two people familiar with the occurrence said that the U.S Federal Aviation Administration could give Boeing to all clear to return its jet to flight in late May to the beginning of June. However, various pilots believe that the new training proposals do not address their concerns on the matter.
The family and friends of one of the victims will hold a silent protest outside the meeting.
At 19:55 GMT -4 Friday, shares in Boeing Co (NYSE:BO) were trading at -0.57%, whilst shares in American Airlines Group Inc (NASDAQ:AAL) were trading at -1.05%.
