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

4:35 pm Tuesday, October 11th, 2022

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 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 pilots told Reuters it supports the extension, while the Allied Pilots Association representing 15,000 American Airlines 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.

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.

(Reporting by David Shepardson; editing by Jonathan Oatis, Nick Zieminski and David Gregorio)