Story
FAA Delays Boeing 737 MAX 10 Certification Over Software Issue; Shares Fall 6%
Summary
The U.S. Federal Aviation Administration has paused the certification process for Boeing's 737 MAX 10 jet due to a new software glitch, sending the company's shares down sharply on concerns of further program delays.
The U.S. Federal Aviation Administration has delayed the certification of Boeing's 737 MAX 10 jet, citing a newly discovered software issue. The announcement triggered a sharp sell-off in Boeing shares, highlighting investor concerns over further setbacks for the critical aircraft program.
Certification Halted Over Software Glitch
The FAA will not proceed with certifying the largest variant of the 737 MAX until the software problem is resolved, FAA Administrator Bryan Bedford confirmed on Monday. "We will be delaying the 10 until we’re satisfied that we don’t have an issue here," Bedford told reporters at an event, according to Reuters.
The issue, which Boeing disclosed on Saturday, could prevent pilots from accessing automated flight guidance systems during a specific landing scenario. The software component in question was supplied by key partner GE Aerospace. Bedford declined to estimate the length of the delay but noted that pilots maintained control of the aircraft when the issue occurred.
Market Reaction and Investor Concerns
Shares of The Boeing Company (BA) fell 6.3% on Monday following the news. The decline reflects investor anxiety surrounding the 737 MAX program, which has faced intense scrutiny and multiple delays since two fatal crashes in 2018 and 2019 that were linked to a different software system.
AdThe 737 MAX 10 is a cornerstone of Boeing's strategy to compete with rival Airbus in the highly profitable single-aisle jet market. Any further delay in its entry into service could impact the company's market share and future revenue.
Industry Response and Next Steps
The FAA said it plans to convene a Corrective Action Review Board to investigate the matter thoroughly. In a statement, a Boeing spokesperson said, "We continue to follow the lead of the FAA as we work through the certification process."
Airline responses varied based on their current fleets. United Airlines and Alaska Airlines confirmed they do not use the affected software. However, Canadian carrier WestJet, which does operate aircraft with the software, stated it had not experienced any in-service issues and has procedures in place to mitigate such an event.
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