Many old aircraft wouldn't meet today's certification requirements and that's is what the B737 basically is, an old generation jet tarted up. Imagine trying to get the B707 certified against modern regulations concerning handling, performance and safety. It would be a nightmare, easier to make a clean start with a new aircraft designed with today's regs in mind, incorporating modern systems in the design process, rather than trying to bolt them on afterwards.
Boeing have some of the best brains in the industry working for them, state of the art production facilities and are capable of making a class leading narrowbody replacement for the B737. Everything was going well until the B787 came along at which point it was apparent that the things were going off the rails. The "old" Boeing Company produced some excellent aircraft such as the current generation B777 which dominates its section of the market and has an enviable safety record.
Hard decisions need to be made in the next few weeks:
1. Bite the bullet and pull the plug on the MAX, scrap 400+ airframes, nearly 100 fuselages and pay everyone compensation. Back to the drawing board for a new type designed by engineers, not accountants and properly certified by the FAA. Whilst this would be the best solution, the amount of money involved would be colossal given the 5 - 10 year lead time, expense of developing a new type and greatly reduced income during this time. Government support along the lines of that given to the auto industry would be necessary on the "too big to fail basis". Also all the rhetoric about EU support for Airbus would seem rather hypocritical.
2. Persevere with getting the MAX flying again at whatever cost whilst hoping the band aid solution is acceptable to aviation authorities in the rest of the world, particularly the Chinese. Develop a replacement as quickly as possible alongside changing the company culture back to quality and safety instead of cost cutting and share price.
If the MAX solution isn't unanimously accepted by the world's aviation authorities, which is quite possible, and the type is only approved to fly in certain regions, then Boeing will be practically giving them away in order to maintain market share and customers. Complaints about dumping would undoubtedly be forthcoming to the WTO, sound familiar ? Airlines will be offering seats for free to those willing to fly on an aircraft which is banned on safety grounds in other countries.
After years of accusations of state support for Airbus, it will be interesting to hear the American explanation if they are forced to step in and prop up Boeing, which is becoming a real possibility given the contribution it makes to the US economy and knock on effects of a failure.
At one time Britain dominated the aircraft industry and was a major car producer, that all changed. Unless Boeing get their act together quickly, we could be watching a "sea change" in the world aerospace industry with Airbus dominating, the Chinese taking second place and Boeing coming third.