Boeing 's (NYSE: BA) inventory of 737 MAX white tails -- jets that have been assembled but no longer have a buyer lined up -- represents a major problem for the plane maker. Most airlines have far more airplanes on order than they will need over the next few years, making it hard to drum up new orders. But with the 737 MAX potentially just days away from recertification, clearing the backlog of undelivered jets will be a top priority for Boeing as it looks to stem its cash burn.
To achieve this objective, Boeing has held talks with four of the five largest U.S. airlines -- Delta Air Lines (NYSE: DAL) , United Airlines (NASDAQ: UAL) , Southwest Airlines (NYSE: LUV) , and Alaska Air (NYSE: ALK) -- about potentially buying 737 MAX white-tail jets, according to Bloomberg. But will any of these talks lead to deals? Let's take a look.
Boeing hasn't delivered any 737 MAX jets since the fleet was grounded globally 20 months ago. However, for the last 10 months of 2019, the company continued building the 737 MAX at a high rate. It didn't halt production until early 2020 -- and production resumed at a low rate in late May.
For further details see:
Boeing's 737 MAX White-Tail Problem: Will Any U.S. Airlines Help?