Boeing faces $5 billion tab on 737 Max simulator training, says report

Boeing’s costs would rise an estimated $5 billion if pilots need to get simulator training before flying the 737 Max, according to Bloomberg Intelligence. That would nearly double the $5.6 billion that Boeing had committed to cover costs from last year’s grounding of the jetliner.

The firm will be expected to reimburse airline expenses for simulator training because it sold the plane on the basis that pilots certified for the previous 737 variant would need minimal additional training, analyst George Ferguson said on Thursday.

The manufacturer on Tuesday said it had advised regulators that pilots need more than brief tablet-based instruction before flying the Max, reversing its previous stance in part because of revisions to the plane after two crashes killed 346 people. Simulator training would delay the return of the aircraft, Ferguson said. The decision on simulators is up to regulators, who have yet to approve the plane’s return.

“Our estimates show the cost of airline lost profits will probably exceed Boeing’s $5.6 billion reserve just for 2019,” he wrote.