🍎 🍕 Less apples, more pizza 🤔 Have you seen Buffett’s portfolio recently?Explore for Free

U.S. Senate defense bill does not extend Boeing 737 MAX certification -sources

Published 10/11/2022, 01:45 PM
Updated 10/11/2022, 04:41 PM
© Reuters. FILE PHOTO: The first Boeing 737 MAX 7 is unveiled in Renton, Washington, U.S. February 5, 2018. REUTERS/Jason Redmond/File Photo
BA
-
LUV
-
AAL
-

By David Shepardson

WASHINGTON (Reuters) - The latest version of the U.S. Senate's defense bill does not contain an amendment to extend a December deadline for Boeing (NYSE:BA) Co to win regulatory approval for the 737 MAX 7 and MAX 10 jetliners, according to sources and documents seen by Reuters.

Late last month, Republican Senator Roger Wicker proposed extending until September 2024 the deadline for the U.S. planemaker to win approval for the two new 737 variants.

Unless it gains an extension from Congress, Boeing must meet new modern cockpit-alerting requirements that could significantly delay the planes' entry into service. Wicker had sought to attach the measure to the version of the defense bill that was filed on Tuesday.

Boeing shares, which were trading around $135 a share before Reuters reported the news, fell to $131.57 at the close, down 33 cents from the previous session's close.

The requirements were adopted by Congress as part of certification reform passed after two fatal 737 MAX crashes killed 346 people and led to the bestselling plane's 20-month grounding.

Wicker, top Republican on the Senate Commerce Committee, did not immediately comment.

There are other opportunities to make changes to the defense bill and an extension could be attached to other measures Congress will consider before year end.

On Friday, the union representing about 10,000 Southwest Airlines (NYSE:LUV) pilots told Reuters it supports the extension, while the Allied Pilots Association representing 15,000 American Airlines (NASDAQ:AAL) pilots said it opposes it.

Both American and Southwest fly the MAX 8. Southwest has ordered 192 MAX 7 planes. Boeing has an estimated 1,000 orders and commitments for MAX 7 and 10s.

© Reuters. FILE PHOTO: The first Boeing 737 MAX 7 is unveiled in Renton, Washington, U.S. February 5, 2018. REUTERS/Jason Redmond/File Photo

Boeing declined to comment. In the past, it has said it is safer to have one common 737 cockpit alerting system.

Reuters reported last week Boeing does not anticipate winning regulatory approval for the MAX 10 before next summer, according to a Federal Aviation Administration letter.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.