FAA Clears 737 Max Software, Max 10 Path Opens
The US Federal Aviation Administration's decision on 3 October smooths the path for the long-delayed 737 Max 10, a crucial model for Boeing's finances with over 1,500 orders.
FAA Decision on Max Software
The US Federal Aviation Administration (FAA) has determined that a software issue affecting Boeing Co's 737 Max aircraft does not pose a safety risk. On 3 October, the FAA's Corrective Action Review Board concluded that pilots maintain full control of the aircraft, and flight crew indications remain clear and unambiguous, according to an agency statement.
This decision follows a review of a glitch that can occur during an aborted landing, which forces the autopilot into a simpler pitch control mode and increases crew workload. The ruling is a significant step for the US planemaker, which is seeking regulatory approval for its largest variant, the 737 Max 10.
Boeing and Regulator Actions
Boeing confirmed its engineers are developing the next software update. The company plans to issue a bulletin to airlines, outlining procedures for pilots to re-enable the automated navigation system if the error occurs. GE Aerospace, the software supplier, supports the FAA's decision and will collaborate with Boeing on the update, a spokesperson stated.
The FAA will also issue a special airworthiness information bulletin to US carriers and foreign regulators, ensuring awareness of Boeing's guidance, an agency official said. Earlier, FAA Administrator Bryan Bedford had indicated potential delays for the Max 10 certification pending this safety determination.
Financial Implications and Max 10 Outlook
The FAA's clearance offers a boost to Boeing's efforts to stabilise its financial position. The 737 Max 10 model, already years behind schedule, is vital for generating cash and strengthening the company's balance sheet. Orders for the aircraft currently exceed 1,500 units globally. On Friday, 2 October, Boeing shares pared an intraday gain of 2.4% to close up 0.7%.
Despite this positive movement, the stock has declined 11% this year, underperforming the S&P 500 Index's 13% advance over the same period.
The FAA's safety determination directly impacts Asian airlines operating or awaiting delivery of 737 Max aircraft. Carriers such as Singapore Airlines, Lion Air, and SpiceJet, which operate Max fleets or have orders, will implement Boeing's forthcoming operational bulletin.
While the FAA certified the smaller Max 7 variant in August with the affected software, the resolution for the Max 10's approval could accelerate deliveries across the region. This clarity helps Asian operators in their fleet planning and capital expenditure decisions, ensuring continued confidence in the aircraft's operational safety.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
Comments.
Comments are moderated. We remove what is unlawful, abusive or off-topic, and and you remain responsible for what you post.
Reader comments open soon. Until then, corrections and responses go to our newsroom, and we publish what we get wrong on Corrections.