Certification of Boeing 737 Max planes 'will not happen this year'

PwC's sectoral report also says Ireland could play a leading role in developing sustainable fuels for global aviation

The gaping hole where the paneled-over door had been at the fuselage plug area of Alaska Airlines Flight 1282 on Sunday, January 7. Picture: National Transportation Safety Board/AP

Certification of the Boeing 737 Max 7 and Max 10 planes will not be completed this year, according to to a major aviation report from PwC. 

The report comes as concerns have been raised after the blowout of a panel on a Boeing Max 9 plane earlier this month operated by Alaska Airlines.  

The PwC in its 2024 Aviation Industry Review and Outlook predicted that "737 Max 7 and 10 certification will not happen in 2024". 

The report also said Ireland could play a leading role in developing sustainable fuels for global aviation because of the huge airplane leasing industry that is based here, according to a PwC report, 

However, the Government may be required to provide tax incentives, as "the scale of change and innovation required to arrive at commercially viable solutions to achieve net zero is arguably the industry's biggest challenge", the PwC report said.  

Dramatic images shared on social media showed what happened when a panel inside Alaska Airlines Flight 1282 when a panel on the Boeing 737-9 MAX blew out. Picture: National Transportation Safety Board/AP

"Ireland has been a leading global aviation centre of excellence for the last 50 years, attracting the world’s top players. Over 60% of the world’s leased aircraft are managed from Ireland, and 14 of the world’s top 15 lessors are located here," said Brian Leonard, Ireland’s aviation finance leader at PwC. 

"This can include tax relief for investments into projects working on the development of new Sustainable Aviation Fuel technologies," he said.

According to the annual review, the global airline industry moved back into the black last year and profitability is expected to increase again this year helped by a recovery in passenger numbers since the pandemic. 

Other parts of the industry, including air freight, will, however, "remain relatively weak, with a recovery in volume growth offset by soft rates". 

Aircraft leasing firms have had "a stand-out year", the report said. "With covid firmly established in the rear-view mirror, strong demand for aircraft and substantial improvements in lease rates, all of which led to strong profitability. Lessors contributed an estimated $40bn (€36.7bn) of delivery financing in 2023, with a further $6.5bn in used aircraft sale and leaseback transactions," it said.