FAA Clears 737 MAX 10, Completing Certification of Entire MAX Family
BA is trading near its 52-week low of $176.77 (7.7% above the low).
Summary
The FAA cleared Boeing to deliver the 737 MAX 10, the largest and last variant of its best-selling narrow-body family, following the August certification of the smaller MAX 7. Boeing can now deliver all four MAX variants, and the MAX 10 ships with a new angle-of-attack system that cross-checks a third sensor reading — a direct response to the faulty data behind the 2018 and 2019 crashes that killed 346 people. The approval was briefly held up by a software glitch the FAA deemed not a safety issue. The 737-10 is the first commercial airplane certified to the full extent of the 2020 Aircraft Certification, Safety, and Accountability Act, and its certification program included more than 2,000 total flight hours plus 1,000 ground test hours; the enhanced angle-of-attack system will become standard across the 737 MAX family. Boeing said 30+ customers have ordered 1,555 737-10s, over 30% of the MAX order book; the jet seats 230 and has 365 nautical miles more range than competitors. This is the regulatory unlock the program has been waiting on for years; deliveries to Delta, United and American can now proceed, and orders have been climbing. Watch the first MAX 10 delivery dates and whether the certification translates into a cash-flow inflection after the Q2 loss of $428 million.
Updated with a dpa-AFX report · What changed
Updates
· dpa-AFX — Boeing said 30+ customers have ordered 1,555 737-10s, over 30% of the MAX order book; the jet seats 230 and has 365 nautical miles more range than competitors.
- 737-10 is the first commercial airplane certified to the full extent of the 2020 Aircraft Certification, Safety, and Accountability Act
- Certification program included more than 2,000 total flight hours plus 1,000 ground test hours
- Enhanced Angle-of-Attack system will become standard across the 737 MAX family
At the time of this announcement, BA was trading at $190.42 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $150.5B. The 52-week trading range was $176.77 to $254.35. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.