<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5c8a6bac69e11c3800545c15-1771/max8ffk66500-01.jpg" border="0" alt="Boeing 737 Max 8" data-mce-source="Boeing" /><p class="source"><span>Boeing</span></p><p class="caption">A Boeing 737 Max at takeoff.</p></div><p></p></div></div></p><ul class="summary-list"><li><strong>Ethiopia's Aircraft Accident Investigation Bureau (AIB) released its preliminary report on the crash of <a href="https://www.businessinsider.com/category/ethiopian-airlines" target="_blank" rel="noopener">Ethiopian Airlines</a> Flight ET302 on Thursday.</strong></li><li><strong>According to the reports, the pilots noted that the manual stabilizer trim controls did not work.</strong></li><li><strong>That may be due to a decades-old design idiosyncrasy found on the <a href="https://www.businessinsider.com/category/boeing" target="_blank" rel="noopener">Boeing</a> 737, <a href="https://theaircurrent.com/" target="_blank" rel="noopener">The Air Current</a> reported. </strong></li><li><strong><a href="https://www.businessinsider.com/?hprecirc-bullet" target="_blank" rel="noopener">Visit Business Insider's homepage for more stories.</a></strong></li></ul><p>Ethiopia's Aircraft Accident Investigation Bureau (AIB) released its preliminary report on the crash of Ethiopian Airlines Flight ET302 on Thursday. One of the most confounding details to emerge from the 33-page document was the finding that the pilots successfully turned Boeing's troublesome MCAS<span> (Maneuvering Characteristics Augmentation System) </span>off only to switch it back on after the manual trim controls for the horizontal stabilizers didn't work.</p><p>Roughly three minutes into the six-minute flight, the Captain asked the First Officer if he could manually trim the rear stabilizer - by hand-cranking a trim wheel on the center console between the two pilots - to point the plane's nose up, the crash report said. </p><p>Seconds later, the First Officer replied that the manual trim control was not working, according to the report. This precipitated the pilots' re-engaging the automatic system and may have ultimately contributed to the flight's demise.</p><p><em><strong>Read more</strong>: <a href="https://www.businessinsider.com/boeing-ethiopian-investigators-confirm-bad-sensor-triggered-faulty-software-before-crash-2019-4" target="_blank" rel="noopener">Boeing and Ethiopian investigators confirm a faulty sensor was triggered on the 737 Max shortly before it crashed</a></em>.</p><p>According to aviation trade publication <a href="https://theaircurrent.com/aviation-safety/vestigal-design-issue-clouds-737-max-crash-investigations/" target="_blank" rel="noopener">The Air Current</a>, an idiosyncrasy from the Boeing 737's past may have cropped up on Ethiopian Airlines Flight 302. </p><p>The publication spoke with former Boeing flight control engineer Peter Lemme along with an Australian Boeing 737 pilot.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5ca63fbdc6cc507bca10fe18-2180/2019-03-29t051940z1926582199rc1786f09da0rtrmadp3ethiopia-airplane-regulator 1.jpg" border="0" alt="Boeing 737 Max 8 take off" data-mce-source="REUTERS/Jason Redmond" /><p class="source"><span>REUTERS/Jason Redmond</span></p></div><p></p></div></div>Both said that pilots flying the older 737-200 were instructed in training that if the plane's horizontal stabilizer is tilted too far in the nose down position, the manual crank won't work while the control yoke is pulled back. </p><p>It's information that has since been removed from the training manuals of subsequent Boeing 737 generations. </p><p>Apparently, this phenomenon is a result of aerodynamic forces on the plane's horizontal stabilizers that "effectively paralyzes" the mechanism that operates the control surface, Lemme told The Air Current. It's an effect that becomes worse as the plane's speed increases. </p><p>The set of circumstances laid out by Lemme and the unnamed 737 pilot applies to the decade's old 737-200, but it also sounds eerily similar to those faced by Flight ET302. </p><p>Boeing was not immediately available for comment. </p><p>The Ethiopian preliminary report did not assign causation for the crash that killed all 157 passengers and crew. </p><p>Boeing is currently working on software updates for the grounded 737 Max fleet.</p><p><span>Most of the updates will be to MCAS.</span></p><p><span>To fit the Max's larger, more fuel-efficient engines, Boeing had to position the engine farther forward and up. This change disrupted the plane's center of gravity and caused the Max to have a tendency to tip its nose upward during flight, increasing the likelihood of a stall. MCAS is designed to automatically counteract that tendency and point the nose of the plane down when the plane's angle-of-attack (AOA) sensor triggers a warning.</span></p><p><span><a href="https://theaircurrent.com/aviation-safety/vestigal-design-issue-clouds-737-max-crash-investigations/" target="_blank" rel="noopener"><strong>Click here to read more about the Boeing 737 control issue at The Air Current</strong></a>. </span></p><p class="tagline">Get the latest Boeing stock price <a href="http://markets.businessinsider.com/stock/BA-Quote">here.</a></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/goodyear-blimp-nascar-daytona-flying-aviation-2019-4">I rode the world-famous Goodyear Blimp as it flew above the Daytona International Speedway - here's what it's like to fly</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/rchIQn0T-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

A little-known quirk on the Boeing 737 may have made things difficult for the pilots of the crashed Ethiopian Airlines flight

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/583f2a83e02ba72e008b6d7f-1280/cq5damweb12801280 9.jpeg" alt="Cadillac Daytona Prototype" data-mce-source="Cadillac" /><p class="source"><span>Cadillac</span></p><p class="caption">Vroom!</p></div><p></p></div></div>If you think Cadillac is just about luxury cars with a certain bold American attitude - well, Cadillac is about that. But the automaker, which moved its sales and marketing operations to New York City in 2015, is also a serious player in auto racing<em>. </em>Caddy just doesn't talk about it that much. </p><p>Now, though, the car maker is going big time. Caddy is entering a new racing series with a new car that looks pretty amazing. </p><p>On Wednesday, Cadillac revealed its DPi-V.R and announced that it will <span>join the </span><span>WeatherTech SportsCar Championship Daytona Prototype International series.</span></p><p>This type of endurance racing is sort of tricky to understand, but basically, there are two groups that compete: prototypes and sports cars. </p><p>Prototypes, like the new Cadillac, are the most exotic vehicles at the race. They're test beds for new technologies and endurance racing is where they face their sternest test. At the Rolex 24 race in Daytona, FL. next year, which is where Cadillac will make its debut, the cars run for 24 hours.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/583f2ab1e02ba72b318b69a7-1280/cq5damweb12801280 10.jpeg" alt="Cadillac Daytona Prototype" data-mce-source="Cadillac" /><p class="source"><span>Cadillac</span></p><p class="caption">Sleek!</p></div><p></p></div></div></p><p>The sports cars, however,  are race-car versions of road cars. The Corvettes look like Vettes, the Ford GTs look like Ford GTs, and the Ferrari 488s look like Ferrari 488s. They aren't as fast as the prototypes, though, which are the outright winners of the races they're entered in alongside the sports cars.</p><p>Two teams will take to the Daytona International Speedway at the end of January in the Caddy prototype, <span>Wayne Taylor Racing and Action Express Racing, Cadillac said. </span></p><p><span>The machine is striking. </span></p><p><span><span>"The DPi-V.R race car was an exciting new canvas for the Cadillac design and sculpting team," Andrew Smith, Global Cadillac Design executive director, said in a statement.</span></span></p><p><span><span><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/583f37f7ba6eb620008b6daa-1280/cq5damweb12801280 11.jpeg" alt="Cadillac Daytona Prototype" data-mce-source="Cadillac" /><p class="source"><span>Cadillac</span></p></div><p></p></div></div></span></span></p><p><span><span>"The studio embraced the opportunity to interpret the Cadillac form language, line work and graphic signature for this premier prototype racing application. Every detail of the final design was selected to support the car's on-track performance and unmistakable Cadillac presence."</span></span></p><p><span><span><span>Motivating the DPi-V.R is 6.2 liter V-8 engine, related to the 640-horsepower Cadillac CTS-V motors, according the Cadillac. In the race car, it will crank out </span></span></span><span><span><span>600 horsepower and send all that oomph to the rear wheels through hardy, raceworthy transmission.</span></span></span></p><p><span><span><span><span>"Cadillac is proud to return to the pinnacle of prototype racing in North America after a 14-year absence," Johan de Nysschen, Cadillac's president, said in a statement</span>.</span></span></span></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/ride-around-nyc-brand-new-ghostbusters-car-ecto-1-2016-7">We took a ride around NYC in the new 'Ghostbusters' car which is actually a 1984 Cadillac hearse</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="1ibG9xNDE6cigHnncNnRBQ9W4GWQqniy" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', '1ibG9xNDE6cigHnncNnRBQ9W4GWQqniy',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

Cadillac has a new race car - and you won't believe what it looks like

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5cadf3f47ef2b50d6c15b9d7-2400/gettyimages-532422794.jpg" border="0" alt="elon musk" data-mce-source="Photo by J. Emilio Flores/Corbis via Getty Images" /><p class="source"><span>Photo by J. Emilio Flores/Corbis via Getty Images</span></p></div><p></p></div></div></p><ul class="summary-list"><li><strong>Nomura Instinet has resumed coverage of <a href="https://www.businessinsider.com/category/tesla">Tesla</a> with a $300 price target and neutral stock rating. </strong></li><li><strong>Analyst Christopher Eberle says the company's opportunity is akin to Salesforce's disruption in the early 2000's.</strong></li><li><strong>Demand, a top of mind worry for many other analysts, isn't something Eberle says is a problem. </strong></li></ul><p>Wall Street has always struggled with how to compare <a href="https://www.businessinsider.com/category/tesla">Tesla</a> to other baskets of stocks.</p><p>Some analysts, like Morgan Stanley's widely followed <a href="https://www.businessinsider.com/category/adam-jonas">Adam Jona</a>s, lump Elon Musk's electric car company with other traditional automakers, while others like <a href="https://www.businessinsider.com/gene-munster-tesla-is-the-next-apple-2017-5"><span>Gene Munster is well known for his comparison to Apple. </span></a></p><p>Nomura Instinet, which re-instated coverage of Tesla on Tuesday, has another idea: Salesforce.</p><p>"Similar to some of the Software greats' disruption of enterprise hardware, TSLA is a true disruptor of the automotive industry, in our view," analyst Chris Eberle said in a note to clients</p><p>"It forces legacy combustion engine behemoths to scramble to develop competing products without cannibalizing their cash flow machines-keeping them comfortably at a distinct disadvantage, similar to what Salesforce (CRM) did when it pioneered the Software-as-a-Service (SaaS) business model."</p><p>Eberle has reinstated coverage of Tesla after the firm's previous analyst, Romit Shah, dropped the company in February, according to Bloomberg data. His initiation comes at a $300 price target, about 7% higher than shares were set to open Wednesday.</p><p>According to Eberle, Tesla's over-the-air software updates are akin to Salesforce's move to put CRM (customer relationship management) software on the cloud in the early 2000's.</p><p>"We liken this to TSLA's over-the-air software vehicle updates, which alongside fewer moving and mechanical parts, essentially eliminates 80% of "maintenance" that historically required an auto mechanic (and, in CRM's case, software engineer), " Eberle said.</p><h2>A massive opportunity</h2><p>Like most Wall Street bulls, Eberle points to Tesla's massive market opportunity in taking share from other automakers.</p><p>"For much of Tesla's existence, established automakers did not even consider the company as competition," Eberle said. "Even following the dramatic success of the Model S in the first half of the decade, Tesla was considered not much more than a novelty: a niche luxury automaker, primarily serving the upper end of the U.S. market. Over the past 24 months, however, that has all changed."</p><p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5cadefa06a0dde0bb02adfd9-726/screen shot 2019-04-10 at 92207 am.png" border="0" alt="Tesla market share" data-mce-source="Noura" /><p class="source"><span>Noura</span></p></div><p></p></div></div></p><p>And he's not worried - <a href="https://markets.businessinsider.com/news/stocks/tesla-stock-price-delivery-numbers-miss-stoking-demand-concerns-2019-4-1028087510">like many other analysts</a> - about the latest slowdown in demand for Tesla vehicles.</p><p>"We continue to believe in the depth of worldwide demand, particularly considering the size of the regional markets in Europe (double the U.S. market) and China (becoming many multiples of U.S.)," Eberle said.</p><p>"Furthermore, we see the introduction of Model 3 leasing as a potentially big demand lever, and we believe that a mass-market SUV/CUV offering in the Model Y (unveiled March 14 2019, with mass production expected by end-2020), could double Tesla's total market opportunity."</p><h2>More Tesla news: </h2><ul><li><a href="https://www.businessinsider.com/tesla-senior-director-of-global-security-leaves-company-2019-4">Tesla's senior director of global security has left the company</a></li><li><a href="https://markets.businessinsider.com/news/stocks/tesla-stock-price-where-wall-street-analysts-stand-2019-4-1028095521" data-analytics-position="1">Tesla's price target has been slashed by 3 major Wall Street banks. Here's where other analysts stand right now.</a></li><li><a href="https://www.businessinsider.com/tesla-lays-off-dozens-of-salespeople-april-2019-4" data-analytics-position="2">Tesla fired dozens of salespeople after its disappointing Q1 delivery report</a></li><li><a href="https://www.businessinsider.com/fiat-chrysler-pays-tesla-to-add-cars-to-fleet-to-meet-eu-emissions-rules-2019-4" data-analytics-position="4">Fiat Chrysler will pay for Tesla cars to be included in its fleet in order to meet European emissions limits</a></li></ul><p class="tagline">Get the latest Tesla stock price<a href="http://markets.businessinsider.com/stock/TSLA-Quote"> <strong>here.</strong></a></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/goodyear-blimp-nascar-daytona-flying-aviation-2019-4">I rode the world-famous Goodyear Blimp as it flew above the Daytona International Speedway - here's what it's like to fly</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/rchIQn0T-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

The latest Wall Street analyst to launch coverage of Tesla says investors should compare it to an unlikely tech giant

<p>The Coke Zero 400 race at Daytona International Speedway ended in a horrifying car crash Sunday night.</p><p>As drivers crossed the finish line, led by Dale Earnhardt Jr., a massive crash took place. It sent Austin Dillon's car flying through the fair, smashing into the catch-fence, then flipping upside down as other drivers piled up.</p><p>Several other cars caught fire and spun out across the track, but amazingly, no drivers were seriously injured.</p><p>Here's video of the crash:</p><div><div><iframe width="560" height="315" src="//www.youtube.com/embed/LRhNXrzMfew" frameborder="0" allowfullscreen=""></iframe></div></div><p class="embed-spacer"></p><p>The ease with which Dillon's car went airborn is terrifying:</p><p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/559a7e92eab8ea394d7254a7/daytona%20wreck.gif" border="0" alt="Daytona wreck"><p class="source"><span>Via YouTube</span></p></img></div><p></p></div></div><p>A fan caught intense video of the crash from the stands nearby:</p><div><div><iframe src="//instagram.com/p/4yQbB5zLHe/embed/" width="658" height="" frameborder="0" scrolling="no" allowtransparency="true"></iframe></div></div><p class="embed-spacer"></p><p>Here are more insane images of the crash:</p><p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/559a81caeab8ea975d7254ab-1162-871/daytona-crash-1.jpg" border="0" alt="daytona crash 1"><p class="source"><span>Terry Renna/AP</span></p></img></div><p></p></div></div><p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/559a8203ecad049e1d4b5c43-1065-799/daytona-crash-2.jpg" border="0" alt="daytona crash 2"><p class="source"><span>Phelan M. Ebenhack/AP</span></p></img></div><p></p></div></div><p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/559a8231ecad040a1d4b5c44-1041-781/daytona-crash-3.jpg" border="0" alt="daytona crash 3"><p class="source"><span>Rob Sweeten/AP</span></p></img></div><p></p></div></div><p>Dillon's crew rushed over to his car and pulled him out, and he let the crowd know he was OK:</p><p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/559a838369bedd4c5c4b5c43-1200-600/austin-dillon-wreck-1.jpg" border="0" alt="austin dillon wreck"><p class="source"><span><a href="http://screengrabber.deadspin.com/daytona-finish-features-massive-horrifying-wreck-1715930669">Via Deadspin</a></span></p></img></div><p></p></div></div><p><a href="http://screengrabber.deadspin.com/daytona-finish-features-massive-horrifying-wreck-1715930669">As Deadspin's Timothy Burke noted</a>, Earnhardt's father, Dale Earnhardt Sr., was killed in a wreck at Daytona 14 years ago, and fans were injured two years ago at Daytona when a car tore through the catch fence in a crash.</p><p><a href="http://www.cnn.com/2015/07/06/us/daytona-race-crash/">According to CNN</a>, 13 spectators were evaluated, eight declined treatment, four were treated on site, and one was taken to the hospital.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/wrestler-john-cena-squatting-pounds-wwe-2015-5">WWE superstar John Cena just posted a video of himself squatting 396 pounds</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="w5d2QzdTqTctRCkJSHsrQ9kDShS450gw" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'w5d2QzdTqTctRCkJSHsrQ9kDShS450gw',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

NASCAR driver's car flips upside down, smashes into fence in terrifying race-ending wreck

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/55f041449dd7cc17008b8fd4-2400/img_2686 (1).jpg" alt="Corvette Z06" data-mce-source="Matthew DeBord/Business Insider" /><p class="source"><span>Matthew DeBord/Business Insider</span></p><p class="caption">The mighty Z06, a 650-horsepower beast.</p></div><p></p></div></div>Ever since it was <a href="https://en.wikipedia.org/wiki/Chevrolet_Corvette_(C1)">first introduced as a stylish roadster in the 1950s</a>, the Chevrolet Corvette has used the same design: engine up front, drive wheels in the back, two seats and a lot of American spirit. </p><p>Through seven generations and a steady increase in horsepower and attitude, that formula has remained intact.</p><p>But it could now be about to change. Big time.</p><p>The Corvette C7 Stingray, <a href="http://www.businessinsider.com/youll-never-think-about-corvette-the-same-way-again-after-your-drive-the-z06-supercar-2015-8">especially in its Zo6 variation</a>, is now a proper supercar. On the the racetrack, the Corvette Racing has racked up 100 victories in sports-car competition, getting everything is can out of that Chevy V8 up under the front hood.</p><p>But at places like the Daytona International Speedway and the 24 Hours of Le Mans, Corvettes are finding themselves running alongside a pair of 21st-century supercars, the Le Mans-winning Ford GT and the new Ferrari 488 GTB. These are both mid-engine designs, with the powerplant located between the driver and the rear wheels. Both are also turbocharged - the Ford GT with an advanced six-cylinder engine, the Ferrari 488 with a V8 - and crank out 600-ish horsepower, while the track Vette doesn't even make it to 500.</p><p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5766a1ba52bcd023008ca3fd-619/screen shot 2016-06-19 at 9.42.39 am.png" alt="Ford GT Le Mans Car 68" data-mce-source="Screenshot via Ford Performance" /><p class="source"><span>Screenshot via Ford Performance</span></p><p class="caption">The Le Mans-winning Ford GT.</p></div><p></p></div></div></p><p>For some time now, there have been rumors that Corvette's next generation will depart from decades of tradition and go mid-engine. Those rumors got a healthy does of credibility recently when the <a href="http://www.detroitnews.com/story/business/autos/general-motors/2016/08/04/sources-mid-engine-corvette-due/88054852/">Detroit News got on the story</a>.</p><p>It makes sense. I watched the Vettes in action on the track this season, beginning with victory at the Rolex 24 at Daytona, then on to total defeat at the hands of Ford and Ferrari at Le Mans (where Corvette was the defending champ in its sports-car class), then back to victory at a race at Lime Rock Park in Connecticut.</p><p>We've also driven every available version of the current-generation Corvette and have been hugely impressed. But we've also driven the 488 GTB, and we're looking forward to checking out the Le Mans-winning Ford GT.</p><p>But the writing is on the wall. As good as the Z06 is, mid-engine layouts now rule the supercar world. The top of the genre is now occupied by Ferrari, Ford, McLaren, Lamborghini, and Audi - all with mid-engine machines.</p><p>And of course Corvette doesn't have to <em>stop </em>making the front-engine Vette. In fact, the speculation now is that the mid-engine Vette will be sort of a special edition. </p><p>If I were a betting man, I'd say that Corvette will have a car ready to race by next January, with a limited production version to follow in 2017. The full-on production car will hit in 2018 (even though the Detroit News says 2019).</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5731016c52bcd066018c1df8-2250/ferrari 488gtb-41.jpg" alt="Ferrari 488GTB 41" data-mce-source="Hollis Johnson" /><p class="source"><span>Hollis Johnson</span></p><p class="caption">The Ferrari 488 GTB.</p></div><p></p></div></div></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/ferrari-488-gtb-best-ever-car-2016-5">This is the best Ferrari ever built</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="NteHJoMzE61ovvxvtC6ixUGfEzU9eZY0" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'NteHJoMzE61ovvxvtC6ixUGfEzU9eZY0',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

Corvette might be on the verge of the biggest change in its history

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5c8fdbb601df7213274f3692-2400/gettyimages-1135839288.jpg" border="0" alt="American Airlines Boeing 737 Max grounded" data-mce-source="Joe Raedle/Getty Images" /><p class="source"><span>Joe Raedle/Getty Images</span></p><p class="caption">Grounded American Airlines Boeing 737 Max 8 airliners.</p></div><p></p></div></div></p><ul class="summary-list"><li><strong>The <a href="https://www.businessinsider.com/category/boeing-737-max" target="_blank" rel="noopener">Boeing 737 Max</a> has been grounded since March 13.</strong></li><li><strong>As a result, <a href="https://www.businessinsider.com/category/american-airlines" target="_blank" rel="noopener">American Airlines</a> had to withdraw its 24 737 Max jetliners from service with little to no notice. </strong></li><li><strong>American has pulled the <a href="https://www.businessinsider.com/category/boeing" target="_blank" rel="noopener">Boeing</a> jet from its flight schedules until August 19 resulting in the cancelation of 115 flights per day.</strong></li><li><strong>Unlike other airlines, American's 737 Max fleet is based at a single hub in Miami. This strategy has been a fortuitous development for the airline and limited the harm done by the fallout from the grounding. </strong></li><li><strong><a href="https://www.businessinsider.com/?hprecirc-bullet" target="_blank" rel="noopener">Visit BusinessInsider.com for more stories.</a></strong></li></ul><p>The grounding of the Boeing 737 Max in March sent carriers scrambling to figure how to operate their scheduled flights with an entire fleet of aircraft suddenly unavailable.</p><p>The disruption caused by the grounding can be felt across the US aviation system. </p><p>For American Airlines, that means canceling 115 flights every day until August 19. While it may pale in comparison to the 6,500 flights a day the Fort Worth, Texas-based airline operates, it's still 115 planeloads of passengers that must be accommodated every day.</p><p>Suddenly losing two dozen aircraft from your fleet and having to scour your network to move planes around to fill in gaps is never a good thing, Vasu Raja, American Airlines's vice president of planning told Business Insider.  </p><p>However, the unique way American structured its 737 Max fleet has mitigated the amount of harm done by the grounding to the airline's flight operations. </p><p><em><strong>Read more</strong>: <a href="https://www.businessinsider.com/boeing-future-remains-unclear-due-to-737-max-scandal-2019-4" target="_blank" rel="noopener">Boeing's problems are mounting and things are going to get worse before they get better</a></em>.</p><p>That's because the airline's 737 Max fleet is based at a single hub, Miami.</p><p>"It was good because at the end of the day it really simplified the scheduling problem we had," Raja said. "We knew we needed to cover certain things in Miami and it put real bounds around what we were solving for."</p><p>"If the airplane was flying all across the US, that could have created more challenges for us given how fast we had to go and makes changes to (the schedule)," Raja added. </p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5cbbc1264a16755fe836d8f3-2400/2019-03-13t185517z586184638rc15e4c6f830rtrmadp3ethiopia-airplane-trump.jpg" border="0" alt="American Airlines Boeing 737 Max landing Laguardia from Miami" style="color: #000000;" data-mce-source="REUTERS/Shannon Stapleton" /><p class="source"><span>REUTERS/Shannon Stapleton</span></p><p class="caption">An American Airlines Boeing 737 Max landing at LaGuardia Airport from Miami.</p></div><p></p></div></div>According to Raja, who is in charge of developing American's global network strategy, the decision to base the 737 Max has as much to do with the way Miami Airport is designed as it does with the plane itself. </p><p>"In our system, especially in Florida, there are a ton of markets that really play to having a high volume airplane that also has the ability to fly far," he said.</p><p>The 737 Max's ability to carry 172 passengers allows the airline to balance frequency and passenger capacity on flights from Miami to destinations such as New York and San Francisco where there are limits on the number of flights allowed, Raja told us.</p><p>At the same time, the American Airlines exec noted that the 737 Max also delivered the range and performance required for many of the flights from Miami to Latin America. </p><p><em><strong>Read more</strong>: <a href="https://www.businessinsider.com/jetblue-azul-founder-david-neeleman-transform-air-travel-2019-4" target="_blank" rel="noopener">JetBlue founder David Neeleman wants to transform air travel in the US</a></em>.</p><p>And then there are Miami Airport's unique challenges.</p><p>"Our Miami facility is a one-mile-long facility where we connect passengers and crew," Raja said. "One of the things we discovered over the years is that the fewer the fleet types that feed it, the more reliable the operation in Miami is."</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5cbbc3e8c3a7c154745f5cc4-2400/shutterstock112369580.jpg" border="0" alt="American Airlines Miami terminal" data-mce-source="Daniel Korzeniewski / Shutterstock.com" /><p class="source"><span>Daniel Korzeniewski / Shutterstock.com</span></p><p class="caption">The American Airlines Terminal at Miami Airport.</p></div><p></p></div></div>Since different aircraft types require their own operating certifications, not all crew are able to operate all types of aircraft. As a result, the more types of aircraft you have operating into the airport, the more types of crew you must have on hand.</p><p>Raja said that before American cut down on the types of planes flying to Miami, there would be times a specific crew needed for a flight at Gate D2 would be coming off another flight that landed at Gate D60 on the other side of the terminal. As a result, the flight at D2 would take a delay simply because the crew couldn't get across the airport in time. </p><p>By limiting Miami to mostly Boeing 737s and Airbus A319s, crew and aircraft scheduling has become more simplified. </p><p>"Since we've simplified Miami, we've seen a huge improvement in its operating performance," Raja said. "At the start of (the American Airlines-US Airways) merger, it was one of our worst performing hubs and now it's consistently one of our best-performing hubs."</p><p><em><strong>Read more</strong>: <a href="https://www.businessinsider.com/boeing-737-max-fills-storage-lots-2019-4" target="_blank" rel="noopener">Boeing can't deliver the 737 Max to customers, and now the planes are clogging up its storage lots</a>.</em></p><p>As for the Boeing 737 Max's return to service, Raja is positive that it will happen, but not certain on when. </p><p>"We feel great confidence that this airplane will be recertified and it will be recertified in the course of the summer and it will fly again soon," he said. "But for us, we're not certain what that date is."</p><p>Raja explained that the reason the 737 Max has been pulled from the airline's schedule until August is to provide customers with assurances that they can make their reservations without worry that their flights will be canceled due to the grounding. </p><p>"As customers go and make their summer travel plans we need to be able to give them a schedule they have absolute confidence will be delivered so we had to take out the Max," Raja said. "We have to do it far enough in advance that no one fears they will have to be accommodated on a flight that doesn't suit them. </p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5c8a6b8adaa50730c361659c-2000/max8ffk66500-01.jpg" border="0" alt="Boeing 737 Max 8" style="color: #000000;" data-mce-source="Boeing" /><p class="source"><span>Boeing</span></p></div><p></p></div></div>On March 13, the Federal Aviation Administration (FAA) issued an emergency order to ground the Boeing 737 Max fleet in the US.  As a result, American, Southwest, and United Airlines had to immediately pull the 72 737 Max jetliners from their respective operational fleets.</p><p>Southwest is the world's largest operator of the Boeing jet with 34 examples in its fleet. American is tied with China Southern and Air Canada for the second most 737 Maxes at 24 aircraft. United operates a fleet of 14 737 Max airliners.</p><p>The grounding follows the fatal crashes of Lion Air Flight JT610 in October and Ethiopian Airlines Flight ET302 in March. The FAA is awaiting Boeing's proposed fix for the Boeing 737 Max's troubled flight control system. </p><p class="tagline">Get the latest Boeing stock price <a href="http://markets.businessinsider.com/stock/BA-Quote">here.</a></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/goodyear-blimp-nascar-daytona-flying-aviation-2019-4">I rode the world-famous Goodyear Blimp as it flew above the Daytona International Speedway - here's what it's like to fly</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/rchIQn0T-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

An American Airlines executive reveals why its exposure to the grounding of the Boeing 737 Max has been limited

<p><img class="float_right" src="http://static4.businessinsider.com/image/50ec250aeab8eae112000000-400/dish-network-tbi-3.jpg" border="0" alt="dish network tbi" />Good morning, AdLand. Here's what you need to know today:</p>
<p><strong><keyword id="260696" type="COMPANY" weightage="60" keywordseo="Dish-Network">Dish Network</keyword></strong> <a href="http://adage.com/article/media/dish-mulls-letting-advertisers-bid-shows-real-time/239039/">is testing the concept of letting advertisers bid on shows in real time with last-minute</a> ad space auctions. There will be a feature called "What's Hot Now" that will track and share what viewers are watching on their Hopper set-top boxes. Dish is the second largest satellite provider in the U.S.</p>
<p><strong>Chartboost</strong>, an SF-based gaming ad network, <a href="http://www.adweek.com/news/technology/mobile-gaming-ad-network-chartboost-raises-19-million-146363">just raised $19 million.</a></p>
<p><strong>Sprint </strong>partnered with Daytona International Speedway. The race formerly known as the Daytona Shootout will now be called The Sprint Unlimited At Daytona.</p>
<p><strong>Dentsu </strong><a href="http://www.mediapost.com/publications/article/190515/dentsu-suggests-early-retirement-for-100-staffers.html#axzz2HKHH5IMB">wants 100 employees between the ages of 40 and 59 with at least 10 years of experience to retire early</a>. Strange target number since it's a 22,000-plus global agency.</p>
<p><strong>Matomy Media Group </strong>acquired MediaWhiz, a digital media agency.</p>
<p><strong>AllState </strong>pulled its ad about satisfied customers that showed the house of a customer who says the <a href="http://www.chicagotribune.com/business/breaking/chi-allstate-pulls-sandy-ads-showing-home-at-center-of-dispute-20130107,0,2430346.story">insurance company is refusing to pay out its full claims.</a></p>
<p>These <a href="http://feedproxy.google.com/~r/adage/complete/~3/-SOCaTDi9So/">creatives made a viral holiday card.</a></p>
<p><strong>Kate Spellman </strong>joined Penton as the SVP marketing.</p>
<p><strong>Previously on Business Insider <keyword id="35666" type="COMPANY" weightage="100" keywordseo="advertising">Advertising</keyword>:</strong></p>
<div class="yui-u">
<ul>
<li><a href="http://www.businessinsider.com/who-are-the-most-creative-women-in-advertising-2012-12" class="title">LAST CHANCE: Nominate The Most Creative Women In Advertising</a></li>
<li><a href="http://www.businessinsider.com/kaley-cuoco-to-star-in-toyota-super-bowl-ad-2013-1">Big Bang Theory Actress Kaley Cuoco To Star In Toyota's Super Bowl Spot</a></li>
<li><a href="http://www.businessinsider.com/chick-fil-a-accepts-fake-trade-homosexuality-for-chicken-sandwich-coupon-2013-1">Chick-fil-A Accepts 'Trade Your Homosexuality For A Free Chicken Sandwich' Coupon</a></li>
<li><a href="http://www.businessinsider.com/taco-bell-sends-high-schooler-custom-made-speedo-2013-1">Taco Bell Is Sending A High Schooler A Custom Speedo Because Of A Facebook Post</a></li>
<li><a href="http://www.businessinsider.com/the-most-viral-mobile-phone-ad-of-all-time-samsung-2013-1">The Most Viral Mobile Phone Ad Of All Time Is ... French?</a></li>
<li><a href="http://www.businessinsider.com/facebook-offers-glitch-over-claimed-language-2013-1">Far Fewer People Are Using Facebook Offers Than Facebook's News Feed Says</a></li>
</ul>
</div>

Dish Network Wants To Revolutionize How Advertisers Bid On Shows [THE BRIEF]

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5caf4e11f28e4c1c6b3006c4-1200/simi jet blue 1.jpg" border="0" alt="Bonny Simi 100 list" data-mce-source="Jet Blue" /><p class="source"><span>Jet Blue</span></p><p class="caption">JetBlue Technology Ventures President Bonny Simi in the captain's seat of an Embraer E190 airliner.</p></div><p></p></div></div></p><ul class="summary-list"><li><strong>Bonny Simi is the president of <a href="https://www.businessinsider.com/category/jetblue-technology-ventures" target="_blank" rel="noopener">JetBlue Technology Ventures</a>. It's the venture capital arm of New York-based <a href="https://www.businessinsider.com/category/jetblue" target="_blank" rel="noopener">JetBlue</a> Airways. </strong></li><li><strong>Simi is a former Olympic luger who gave up a career as a television sportscaster to become a pilot at <a href="https://www.businessinsider.com/category/united-airlines" target="_blank" rel="noopener">United Airlines</a>. </strong></li><li><strong>Simi joined JetBlue in 2003 a pilot and eventually became the airline's head of HR.</strong></li><li><strong>In 2016, Simi became the founding president of JetBlue's VC arm that invests in early-stage start-ups.</strong></li></ul><p>Bonny Simi is the president of JetBlue Technology Ventures - the venture capital arm of JetBlue Airways. </p><p>Founded in 2016, Simi's JetBlue team is an unlikely presence in Silicon Valley's start-up scene. Airlines usually don't spend much time investing in early-stage tech start-ups. And, yet, here they are.</p><p>In many ways, it's only fitting that the leader of this unorthodox firm is someone who took such an unorthodox route to get here. </p><h2>A to-do list for life </h2><p>The Mt. Baldy, California native told Business Insider there was one point in her youth that helped her determine what she wanted to achieve. </p><p>During a high school assembly, the motivational speaker John Goddard challenged the students to make a list of 100 things they wanted to accomplish in life.</p><p>"I thought to myself, I can't think of 100 things to do, but I can think of five," she said. </p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5b070a091ae66249008b4652-1367/ap131339956235.jpg" border="0" alt="JetBlue Embraer 190" data-mce-source="AP" /><p class="source"><span>AP</span></p><p class="caption">A JetBlue Embraer E190 airliner.</p></div><p></p></div></div>It's common for people to come up with to-do lists. It happens every day. But Simi's list is special. If not only for its varied interests and sheer ambition but also for the verve with which she tackled each entry - to go to a good college, to work in television, to become a pilot, to compete in the Olympics, and to build a log cabin. </p><p>After high school, Simi, then known as Bonny Warner, ticked off the first entry on the list. She attended Stanford University on a field hockey scholarship.</p><p>Simi noted that the financial challenges faced by her family meant a scholarship was really the key to her being able to attend college. </p><p>"We didn't have a lot of money," Simi said. "My mom was a single mom with two kids and was a disabled school teacher." </p><h2>From Stanford to the Olympics</h2><p>Simi thrived at Stanford where she was the goalie of the field hockey team. However, it was her victory in an essay writing contest that propelled her into the next chapter of her life. </p><p><em><strong>Read more</strong>: <a href="https://www.businessinsider.com/jetblue-fly-to-london-from-new-york-boston-2021-2019-4" data-analytics-position="2">JetBlue is going to London in 2021</a></em>.</p><p>The contest was to serve as a torch bearer for the 1980 Winter Olympic Games in Lake Placid, New York. </p><p>It was during this experience when Simi was first told that women were not allowed to participate in the bobsled competition. </p><p>"You can't tell me I can't do something," she said of her reaction."So I said 'I want to bobsled!'"</p><p>Since the women's bobsled event was not added to the Olympics until the 2002 Salt Lake City games, a change for which Simi helped lobby, she chose the next best thing by becoming a luger. </p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5cab56bdc6cc505129426e42-2400/gettyimages-658267884.jpg" border="0" alt="Bonny Simi" data-mce-source="Leo Mason/Popperfoto/Getty Images" data-mce-caption="onny Warner of the United States prior to competing in the women's single luge event in Innsbruck, Austria, circa 1987." /><p class="source"><span>Leo Mason/Popperfoto/Getty Images</span></p><p class="caption">Bonny Simi (Warner) of the United States prior to competing in the women's single luge event in Innsbruck, Austria, circa 1987.</p></div><p></p></div></div>So she took time off Stanford and entered a training program to become an Olympic luger all the while cleaning hotel rooms to pay the bills. By 1984, Simi was considered America's best female luger and went on to compete in the 1984, the 1988, and the 1992 Winter Olympic games. </p><p>In between her Olympic appearances, Simi graduated from college and went to work as a sportscaster with ABC in the San Francisco Bay area 1988. </p><p>She also earned her pilot's license. </p><p>Even though Simi would continue to work as a television commentator during the Olympics until 2002, she would leave her full-time TV career behind in 1990 to join United Airlines as a pilot. </p><p>"I was so excited to become an airline pilot. To me, it was equal or even potentially greater than becoming an Olympian," Simi said.</p><p>She spent 13 years at United Airlines where she flew a range of aircraft including the Boeing 727, 737, and 777. Eventually, she was promoted to Captain on United's 727 and 737 fleets.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5944154fe592ed1a098b4c46-2035/rtxg21t.jpg" border="0" alt="Boeing 777" data-mce-source="Reuters/Stringer" /><p class="source"><span>Reuters/Stringer</span></p><p class="caption">A United Airlines Boeing 777-200 in pre-merger livery.</p></div><p></p></div></div></p><h2>Betting big on JetBlue</h2><p>But in 2003, Simi gave it all up to join David Neeleman's New York-based start-up JetBlue Airways.</p><p><span>"I decided I wanted to work for a startup, I loved flying and I didn't want to leave aviation," Simi said of her decision to join JetBlue. "I wanted to work for an entrepreneur, I wanted to work for a company that had a caring culture, and a great brand." </span></p><p>"People thought I was crazy, I left United as a very senior captain to go to JetBlue to be junior first officer," she added. "It was a huge pay cut. It was a sort of leap of faith."</p><p>Simi compared her departure from United to entrepreneurs who quit their jobs to pursue their endeavors because they have the feeling there's more out there to accomplish.</p><p>Her gamble paid off. </p><p>Simi quickly moved into managerial positions within the airline - eventually becoming its head of human resources. </p><p>Which brings us back to <a href="https://www.businessinsider.com/jetblue-technology-ventures-silicon-valley-2016-2" target="_blank" rel="noopener">JetBlue Technology Ventures</a>. </p><p>The idea for the VC firm came from JetBlue's board of directors as a way to keep the company at the forefront of innovation in the airline industry.</p><p>"Innovation is only innovative for that snapshot in time, if you don't continue to work on it and continue to find new ideas, you're not innovative anymore," Simi said. </p><p>According to Simi, JetBlue's goal is to be become "ambidextrous" in that it wants to not only achieve everyday operational excellence but also remain an innovator. </p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5b02db016e8bbd70038b52a3-2000/zunum-jetsuite-may2018 la basin final.jpg" border="0" alt="Zunum JetSuite Plane" data-mce-source="Zunum" /><p class="source"><span>Zunum</span></p><p class="caption">Zunum Aero.</p></div><p></p></div></div>Two of Simi's most high-profile investments offer a glimpse into the firm's ambitions.</p><p>First, there's <a href="https://www.businessinsider.com/boeing-jetblue-invest-zunum-electric-jet-startup-2017-4" target="_blank" rel="noopener">Zunum Aero</a>. It's a Kirkland, Washington start-up that is working on a new electric-powered regional airliner. According to Zunum, it's small regional aircraft could help bring affordable and environmental air travel to the masses while cutting travel time for many American's by utilizing smaller airports. </p><p>And then there's <a href="https://www.businessinsider.com/jetblue-invest-gladly-technology-customer-service-2017-8" target="_blank" rel="noopener">Gladly</a>. It's an integrated customer service software system that allows customer service agents to have a holistic view of customers' communication with the airline. That way, an airline's social media team knows what a customer has communicated by telephone while its phone operators now know what the passenger has included in emails. </p><p>This cuts down on the likelihood of miscommunications and reduces the level of frustration for everyone involved. Gladly software is already in use at JetBlue. While decidedly less ambitious than electric airliners, Gladly's technology could still greatly change the way airlines and its customers communicate.</p><p>If you've been following along, you probably noticed there's one item on Simi's list that hasn't been able to tackle - that is to build a log cabin. </p><p>Based on her track record, I wouldn't bet against this renaissance woman. </p>    <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/goodyear-blimp-nascar-daytona-flying-aviation-2019-4">I rode the world-famous Goodyear Blimp as it flew above the Daytona International Speedway - here's what it's like to fly</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/rchIQn0T-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

The president of JetBlue's venture capital firm is a renaissance woman who just might transform air travel

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/56e0509591058422008b5307-4460-3345/gettyimages-479375832.jpg" alt="nascar tv watching" data-mce-source="Patrick Smith/Getty Images" data-mce-caption="A fan watches TV in his tent during practice for the NASCAR Sprint Cup Series Coke Zero 400 at Daytona International Speedway on July 3, 2015 in Daytona Beach, Florida" /><p class="source"><span>Patrick Smith/Getty Images</span></p><p class="caption">A fan watches TV in his tent during practice for the NASCAR Sprint Cup Series Coke Zero 400 at Daytona International Speedway on July 3, 2015 in Daytona Beach, Florida</p></div><p></p></div></div>The cost of broadcasting live sports has exploded.</p><p>As the looming threats of<a href="http://www.businessinsider.com/tv-ratings-decline-2015-9"> declining ratings and subscriber losses</a> weigh on traditional TV networks, live sports have been a central component of strategies aimed at gaining and retaining existing revenue bases.</p><p>Networks like<a href="http://www.businessinsider.com/nfl-tv-rights-revenue-2015-11"> ESPN and Fox</a> have sunk billions of dollars into securing the rights to broadcast must-see sporting events, and the cost of <a href="http://www.businessinsider.com/espn-nba-broadcast-games-deal-2014-10">securing these rights</a> has <a href="http://www.businessinsider.com/sports-tv-ratings-more-important-than-attendance-2015-11">skyrocketed over the past few years</a>.</p><p>And for an example of just how important live sports has become to networks look no further than the recent deal NASCAR struck with Fox and NBC.</p><p>Despite ratings<a href="http://www.businessinsider.com/nascar-values-2014-7"> falling by a third in the past few years and a fan base in decline</a>, the stock car circuit has raked in TV revenue from its deal with Fox and NBC, according to JP Morgan.</p><p>"Viewership across major networks has fallen by over a third and attendance at tracks has declined too, prompting some venues to reduce capacity," wrote analyst Alexia Quadrani in a note Tuesday.</p><p>"And yet, despite this, NASCAR was still able to achieve a +46% increase in its average annual TV revenue after renewing with FOX, and striking a new agreement with NBC. <strong>In this way, NASCAR is possibly the purest example of the rapidly rising value of live sports over the past decade."</strong></p><p>And so while paying a premium for a product that is in decline, Quadrani highlights another key component of this live sports strategy for the networks: advertisers.</p><p>"Even with a declining audience, NASCAR remains a top draw on cable and broadcast, and like other sporting events, advertisers appreciate its live and engaged audience," the note said.</p><p>This advertising demand has been the central argument for networks that have continued paying a premium for sports: advertisers want people to watch live so they can't fast-forward through commercials.</p><p>This has made events like sports and award shows - which put an emphasis on in-the-moment viewing - worth a premium to advertisers and the networks that bid for these rights.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/56e0510c910584155c8b509b-1024-702/gettyimages-486991034.jpg" alt="nascar tv nbc sports" data-mce-source="Matt Sullivan/Getty Images" /><p class="source"><span>Matt Sullivan/Getty Images</span></p><p class="caption">Joey Logano, driver of the #22 Hertz Ford, right, speaks with television personalty Kelli Stavast</p></div><p></p></div></div></p><p>As for the specific strategy decision, Fox and NBC have used NASCAR as a way to build out their smaller sport-only cable networks, according to JP Morgan.</p><p>"In our opinion though, the primary reason for NASCAR's ability to achieve pricing gains is that its content forms a crucial part of Fox Sports 1 and NBC Sports Network's programming," said Quadrani.</p><p>According to Quadrani, NASCAR will become a crown jewel of these networks whereas at previous rights-holding networks ESPN and TNT, it was competing with other major sports programming for promotional time. (ESPN and TNT, for example, both show NBA games while neither Fox Sports 1 nor NBC have NBA rights currently.)</p><p>In return, the two smaller sports networks have a long-term contract with a major franchise <a href="http://awfulannouncing.com/2013/nbc-sports-network-ratings-are-a-disaster.html">that will boost</a> <a href="http://www.si.com/more-sports/2016/01/29/fox-sports-live-canceled-espn-sportscenter">struggling ratings</a> over time.</p><p>"What is more clear is that for now NASCAR is helping drive viewership at the cable nets, with both reaching record viewership in 2015," said Quadrani. "More viewers should not only help drive ad dollars higher, but also increase distribution and sub rates for both sports networks."</p><p><div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image"><a title_source="JP Morgan" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/56e050dd9105842b008b528a-960/screen shot 2016-03-09 at 11.35.19 am.png"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span><img src="https://static-ssl.businessinsider.com/image/56e050dd9105842b008b528a-1173-257/screen shot 2016-03-09 at 11.35.19 am.png" alt="Screen Shot 2016 03 09 at 11.35.19 AM" data-mce-source="JP Morgan" /></a><p class="source"><span>JP Morgan</span></p></div><p></p></div></div></p><p>The note estimates that Fox made $397.6 million and NBC made $297.4 million in ad revenue during Sprint Cup races in 2015. Based on the deals, Fox pays $380 million a year to NASCAR while NBC pays an average of $440 million.</p><p>This means that Fox is barely profitable through advertisements, and NBC lost around $140 million. However, the number does not include side-by-side promos and ads run during pre- and post-race coverage, or, of course, cable subscription revenues.</p><p>Cable networks make a <a href="http://www.businessinsider.com/espn-revenue-subscriber-fees-2015-11">bulk of their revenue</a> in subscriber fees <a href="http://www.businessinsider.com/espn-revenue-subscriber-fees-2015-11">charged to cable providers</a> to include the networks in their packages, and Quadrani argues that if more people add the smaller FS1 and NBCSN networks to their bundles to watch NASCAR, the revenue will make up for the current advertising dollar difference.</p><p>So while there is possibly some money to be made here, the mere fact that Fox and NBC were willing to shell out a seemingly ever-increasing price for races while ratings decline shows just how vital live sports have become to networks.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/how-to-use-q-tips-to-clean-your-ears-2016-3">Here's why you should never put Q-Tips in your ears</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="Nrb3Q4MTE6lwnAMmIXjHfqYBHd7L6bF8" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'Nrb3Q4MTE6lwnAMmIXjHfqYBHd7L6bF8',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

NASCAR's enormous TV deal shows why live sports are essential to cable networks

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5caf60fc65fe29205036afd4-2248/ap19099796276070.jpg" border="0" alt="Boeing 737 Max train" data-mce-source="AP Photo/Elaine Thompson" /><p class="source"><span>AP Photo/Elaine Thompson</span></p><p class="caption">Boeing 737 fuselages on train cars bound for the assembly line in Renton, Washington.</p></div><p></p></div></div></p><ul class="summary-list"><li><strong><a href="https://www.businessinsider.com/category/boeing" target="_blank" rel="noopener">Boeing</a> has been through a tough month as it faces a bevy of lawsuits and investigations.</strong></li><li><strong>However, it may have even more serious and fundamental issues to confront such as fixing the design flaw in <a href="https://www.businessinsider.com/category/boeing-737-max" target="_blank" rel="noopener">737 Max</a>, regaining the trust of passengers and crew, and maybe even coming up with a replacement for the 737 Max.</strong></li><li><strong>The global fleet of 371 Boeing 737 Max airliners have been grounded since the crash of <a href="https://www.businessinsider.com/category/ethiopian-airlines" target="_blank" rel="noopener">Ethiopian Airlines</a> Flight ET302. </strong></li><li><strong><a href="https://www.businessinsider.com/?hprecirc-bullet" target="_blank" rel="noopener">Visit Business Insider's homepage for more stories.</a></strong></li></ul><p>It's been a tough 30 days for Boeing. In the month since the tragic crash of Ethiopian Airlines Flight ET302, the American aviation giant has seen its hot-selling 737 Max airliner grounded, its stock plunged 10%, and its reputation tarnished by the scandal.</p><p>Boeing admitted last week that a faulty sensor triggered the 737 Max's <span>Maneuvering Characteristics Augmentation System or MCAS on both the Lion Air Flight JT610 and the Ethiopian Airlines plane. The system's activation precipitated nose dives that likely led to both crashes. </span></p><p><span>"The 737 Max grounding and what we are learning from it shows that this is not the typical airplane accident we've seen in the past and this is not the typical airplane grounding we've seen recently," Henry Harteveldt, travel industry analyst and founder of Atmosphere Research Group, told Business Insider. "This is a very serious problem for Boeing and a big problem for the airline operators and a problem I don't think will be easy to fix."</span></p><p><em><strong>Read more</strong>: </em><a href="https://www.businessinsider.com/boeing-difficult-convice-airlines-passengers-737-max-safe-2019-4" data-analytics-position="1"><em>Boeing's reputation has been stained by the 737 Max, and it's going to have to fight to convince people the plane is safe</em></a>.</p><p><span>This week, Boeing investors filed a proposed class-action lawsuit in Chicago alleging the company defrauded its shareholders by failing to reveal potential safety shortcomings of the 737 Max airliner after two fatal crashes in five months. </span></p><p><span>Lawyers representing the 346 victims of Lion Air Flight JT610 and the Ethiopian crash have filed multiple suits against Boeing. </span></p><p><span><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5c87ca4c2628985796741673-2400/k65704.jpg" border="0" alt="Boeing 737 MAX" data-mce-source="Boeing" /><p class="source"><span>Boeing</span></p><p class="caption">The Boeing 737 Max family of jets.</p></div><p></p></div></div>At the same time, the airlines whose 371 grounded 737 Max are sitting in storage collecting dust have initiated compensation proceedings to collect damages from Boeing. </span></p><p><span>Boeing's troubles are mounting and things are going to get worse before it gets better. </span></p><h2><span>Design trouble</span></h2><p><span>The US Department of <keyword id="34991" type="ORGANIZATION" weightage="100" keywordseo="transportation">Transportation</keyword> has commenced an audit on how the Federal Aviation Administration managed to certify the 737 Max to fly with substantial control issues. </span><span></span></p><p><span>Boeing and the FAA's cozy relationship has come under scrutiny from members of Congress. </span></p><p><span>Certification issues aside, </span>Boeing will have to answer for the design flaw that is at the heart of the controversy surrounding the 737 Max in the coming weeks and months.</p><p><span>To fit the Max's larger, more fuel-efficient engines, Boeing had to position the engine farther forward and up. This change disrupted the plane's center of gravity and caused the Max to have a tendency to tip its nose upward during flight, increasing the likelihood of a stall. In response, Boeing created MCAS as a software fix to automatically counteract that tendency and point the nose of the plane down when the plane's angle-of-attack (AOA) sensor triggers a warning.</span></p><p><span>"MCAS was a band-aid that infected the wound instead of healing it," Ross Aimer, an aviation consultant and former Boeing 787 training captain, said in an interview with Business Insider. </span></p><p><span><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5ca78efcc6cc507aec136549-2400/ethiopianairlineset-avjtakeofffromtlv46461974574retusche.jpg" border="0" alt="Ethiopian Airlines Boeing 737 Max 8 ET AVJ" data-mce-source="Wikimedia Commons/LLBG Spotter/ CC BY-SA 2.0," data-link="https://commons.wikimedia.org/w/index.php?curid=77235123" /><p class="source"><span><a href="https://commons.wikimedia.org/w/index.php?curid=77235123">Wikimedia Commons/LLBG Spotter/ CC BY-SA 2.0,</a></span></p><p class="caption">The Ethiopian Airlines Boeing 737 Max 8 that crashed on March 10.</p></div><p></p></div></div>One of the most confounding issues with MCAS is that it can be triggered by a single AOA sensor even though there are two on the plane. This is a departure from Boeing standard operating procedure which normally calls for a dual point of failure. </span></p><p><span>"Since you have two (AOA sensors) in order to get certified, why not use them, I just don't understand it," aviation consultant and former aeronautical engineer Robert Mann told Business Insider in an interview. </span></p><p>"From a design perspective, it doesn't make any sense."</p><h2>Pilots and passengers don't trust the 737 Max</h2><p>One of the 737 Max's greatest selling points was the idea that it could be easily integrated into existing 737 fleets with minimal additional training. Since the 737 has long been one of the most dependable airplanes in the world, this congruency helped make the 737 Max a hot seller.</p><p>However, the 737 Max is a very different plane from the 737NG it replaced. It has new engines mounted in a different location, redesigned wings, and new avionics. These are all things the pilots knew about. </p><p>What they didn't know was that MCAS had been installed on the 737 Max. Pilots found out about MCAS being on the plane after the Lion Air 737 Max crash into the Java Sea on October 28. </p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5c9b51177563b07c1211a696-1800/2019-03-13t045743z2063587879rc18f74e5190rtrmadp3ethiopia-airplane-india.jpg" border="0" alt="Boeing 737 Max 8 cockpit" data-mce-source="REUTERS/Abhirup Roy" data-mce-caption="The cockpit of Boeing 737 MAX 8 aircraft in June 2018." /><p class="source"><span>REUTERS/Abhirup Roy</span></p><p class="caption">The cockpit of Boeing 737 MAX 8 aircraft in June 2018.</p></div><p></p></div></div>"Boeing in the past always told the pilots and airlines exactly what was on those airplanes," Aimer said. "I have been a Boeing pilot for over 50 years and have loved their products, but they have lost my trust."</p><p>Aimer, who is the CEO of Aviation Consulting Experts and a retired United Airlines Captain, feels like Boeing put money ahead of the well-being of passengers and crew.</p><p>"Boeing kept that from us purely because they didn't want to bother the airlines with some extra training," he told us. "This was purely a monetary decision on behalf of Boeing and the airlines themselves to keep this away from the pilots and the result was disastrous." </p><p>And then there's the traveling public.</p><p><span>A </span><a href="https://www.businessinsider.com/americans-dont-want-to-fly-boeing-737-max-survey-2019-3" target="_blank" rel="noopener">poll conducted by Business Insider</a><span> a week after the Ethiopian crash showed that 53% of American adults would not want to fly on a Boeing 737 Max even after the FAA clears the aircraft for service.</span></p><p><span>"The 737 Max has stained Boeing's brand reputation," Harteveldt said. "This can't be denied."</span></p><p><span>Business Insider reached out to Boeing for comment on the matter. A Boeing spokesperson noted that company CEO Dennis Muilenberg made a speech on Thursday touting the need to regain public trust.</span></p><p>"We know every person who steps aboard one of our airplanes places their trust in us," Muilenburg said in the speech. "We'll do everything possible to earn and re-earn that trust and confidence from our airline customers and the flying public in the weeks and months ahead."</p><p>"We take the responsibility to build and deliver airplanes that are safe to fly and can be safely flown by every single one of the professional and dedicated pilots all around the world," the Boeing CEO added.</p><h2>Boeing might need a replacement for the 737 Max</h2><p>The Boeing 737 Max is the fastest-selling plane in Boeing history. It's the latest generation of Boeing's money-making 737 family of airliners.</p><p><span>The various versions of the Boeing 737 currently account for 80% of Boeing's 5,800-plane order backlog.</span></p><p><span>It's going to be an uphill battle for Boeing to restore confidence in the grounded jet. </span></p><p>"You can't hide the 737, you've got thousands of them of all types flying worldwide today for airlines," Harteveldt said.</p><p>As a result, you can't simply rebrand the plane. </p><p><span><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5ca5115dc6cc5061d579b297-2400/gettyimages-1133312093.jpg" border="0" alt="Southwest Airlines Boeing 737 Max 8 storage" data-mce-source="MARK RALSTON/AFP/Getty Images" data-mce-caption="Southwest Airlines Boeing 737 MAX aircraft are parked on the tarmac after being grounded, at the Southern California Logistics Airport in Victorville, California." /><p class="source"><span>MARK RALSTON/AFP/Getty Images</span></p><p class="caption">Southwest Airlines Boeing 737 MAX aircraft are parked on the tarmac after being grounded, at the Southern California Logistics Airport in Victorville, California.</p></div><p></p></div></div>"People are going to see right through that," he added.</span></p><p><span>Therefore, Boeing is going to either have to convince people to fly the 737 Max or come up with a replacement.</span></p><p><span>"Yes, (737 Max) is the last iteration," Teal Group aviation analyst Richard Aboulafia told Business Insider in March. "They ran out of steam in terms of range and capacity."</span></p><p><span>That means whichever aircraft Boeing chooses to replace the 737 will be a clean sheet design. </span></p><h2><span>It's not all gloom and doom for Boeing</span></h2><p><span>The situation Boeing finds itself in is not insurmountable.</span></p><p><span>Aimer said Boeing's engineering team should be able to come up with an effective fix for the 737 Max. </span></p><p><span>"They can fix this issue, right now they need to be honest and forthright and try to fix this issue to the best of their ability," Aimer said. </span></p><p><span><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/590b2813fcd8eb20008b4efc-1024/gettyimages-507435484.jpg" border="0" alt="Boeing 737 MAX 8 airliner" data-mce-source="Stephen Brashear / Stringer / Getty Images" /><p class="source"><span>Stephen Brashear / Stringer / Getty Images</span></p></div><p></p></div></div>Harteveldt said Boeing can convince passengers to feel safe in the 737 Max.</span></p><p><span>"Boeing has to become a bit more of a consumer-facing organization to reinstill confidence in its brand so that the saying 'if it's not Boeing I'm not going' can be said again with pride by travelers," the analyst said. </span></p><p><span>On the other hand, Mann believes Boeing won't have to do much to get people to return to the 737 Max. </span></p><p><span>"Once the airplane routinely does what it's designed to do and safely, all of this goes away. And it's crass to say it, but the fact is the traveling public has a very short memory," Mann said. </span></p><p class="tagline">Get the latest Boeing stock price <a href="http://markets.businessinsider.com/stock/BA-Quote">here.</a></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/goodyear-blimp-nascar-daytona-flying-aviation-2019-4">I rode the world-famous Goodyear Blimp as it flew above the Daytona International Speedway - here's what it's like to fly</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/rchIQn0T-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

You Searched For "Daytona International Speedway" and got 12 results

A little-known quirk on the Boeing 737 may have made things difficult for the pilots of the crashed Ethiopian Airlines flight

Benjamin Zhang

Cadillac has a new race car - and you won't believe what it looks like

Matthew DeBord

The latest Wall Street analyst to launch coverage of Tesla says investors should compare it to an unlikely tech giant

Graham Rapier

NASCAR driver's car flips upside down, smashes into fence in terrifying race-ending wreck

Scott Davis

Corvette might be on the verge of the biggest change in its history

Matthew DeBord

An American Airlines executive reveals why its exposure to the grounding of the Boeing 737 Max has been limited

Benjamin Zhang

Dish Network Wants To Revolutionize How Advertisers Bid On Shows [THE BRIEF]

Laura Stampler

The president of JetBlue's venture capital firm is a renaissance woman who just might transform air travel

Benjamin Zhang

NASCAR's enormous TV deal shows why live sports are essential to cable networks

Bob Bryan

Boeing's problems are mounting and things are going to get worse before they get better

Benjamin Zhang

AMAZON: Here's The Finally Tally For All The Insane Shopping Everyone Did This Holiday Season

Jay Yarow

Gymboree is closing 350 stores - here's the full list

Mary Hanbury