Boeing secures FAA approval for 737 Max 10, advancing jet delivery recovery

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Boeing 737 Max 10 FAA approval

Highlights

Boeing receives FAA approval for the 737 Max 10 after an extended safety review, resolving a navigation system issue not deemed a flight safety risk.
The Max 10 represents about 30% of Boeing’s backlog, with key customers including United Airlines, Alaska Airlines, and Delta Air Lines.
Boeing opens a fourth 737 Max production line in Everett in July to accelerate deliveries, aiming to bolster recovery by increasing both 737 Max and 787 Dreamliner output.

Certification decision follows extended safety review

As reported by CNBC, citing the Federal Aviation Administration, the agency on Tuesday signs off on the Boeing 737 Max 10 after a lengthy review of the aircraft's design and safety requirements. The approval comes weeks after federal officials review a navigation system glitch on the plane and determine that it is not a safety-of-flight issue.

The Max 10 was originally set to enter service in 2020, but certification is delayed by heightened scrutiny after two Max crashes in 2018 and 2019, as well as other safety concerns. Boeing also needs engineering changes, including modifications to an anti-icing system for the aircraft's engines.

Backlog value and airline rollout implications

For Boeing, the clearance is a significant operational and financial step because the Max 10 accounts for about 30% of the company's backlog, Chief Executive Kelly Ortberg says at a Morgan Stanley conference on Sept. 16. Customers for the model include Alaska Airlines, American Airlines, United Airlines and Delta Air Lines.

Airlines can begin preparing to carry passengers on the aircraft soon after certification, though it can still take months to place the jets into schedules. United Chief Executive Scott Kirby tells CNBC in August that the carrier has waited so long for the Max 10 that lie-flat seats planned for the aircraft no longer make sense and are sitting in a warehouse, while Alaska Airlines says last month that it plans to add lie-flat seats to some of its Max 10s as it pushes further into premium offerings.

Boeing is also working to raise output of its 737 Max and 787 Dreamliner programs, which are central to its recovery because customers pay most of an aircraft's price on delivery. The manufacturer opens a fourth 737 Max production line in Everett, Washington, in July.

In our earlier coverage of Hyundai’s U.S. recall over a fire risk in older Hyundai and Genesis models, we detailed how overheating front power seat motors could trigger fires whether the vehicles are parked or in motion. We also noted the regulator’s guidance for owners to park outdoors and away from buildings until a remedy is developed, underscoring the operational and compliance burden that safety issues can create for automakers.

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