- U.S. regulators are pushing for clarity on automated flight control systems in Boeing's (NYSE:BA) latest 737 models as a result of last month’s Lion Air crash, as they address inconsistencies in how airlines have informed pilots about one of the features, WSJ reports.
- Since the accident, some pilot union leaders and others have criticized Boeing for failing to highlight the operating principles and potential hazards of the MCAS system which automatically pushes down the nose of an aircraft that is approaching an aerodynamic stall; Boeing has denied it intentionally withheld information about the feature and said it had described the relevant function in its manual.
- But a second automated feature, which has not previously been reported as part of the overall crash review, is intended to prevent cockpit crews from mistakenly further pulling up the nose of an aircraft that is already in a stall; that system, called elevator feel shift, is described differently in aircraft manuals used at Southwest Airlines (NYSE:LUV), American Airlines (NASDAQ:AAL) and United Airlines (NASDAQ:UAL), according to WSJ, citing pilots, safety experts and documents.
- In a note today, Canaccord analysts said the fallout from the Lion Air tragedy will continue to weigh on Boeing shares: "While the near-term stock reaction may be overdone, there is legitimate concern about what the costs for a fix to the [MCAS] system could be, or what the long-term implications could be for the MAX aircraft... We believe the near-term concerns about emerging market growth and the potential implications for the 737 will continue to limit upside on the stock."
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