FAA Nears Certification for Boeing 737 MAX 7 and MAX 10

A senior Federal Aviation Administration (FAA) official said that certification of Boeing's (NYSE:BA) 737 MAX 7 and MAX 10 is nearing completion after an extensive regulatory review. Speaking to Reuters at the Farnborough International Airshow, Deputy FAA Administrator Chris Rocheleau stated that certification of the 737 MAX 7 is "literally around the corner," with approval for the larger MAX 10 expected shortly thereafter.

Details of the Action

Rocheleau explained that the FAA is finalizing its regulatory review of both aircraft variants, which follows the grounding of the MAX fleet after two fatal crashes in 2018 and 2019. The certification process includes rigorous checks of flight control systems and design modifications.

Company's Position

Boeing welcomed the progress, viewing it as a positive step toward resuming deliveries of the smaller variants. The company hopes certification will boost orders and improve its cash flow.

Precedents and Context

This development comes after years of intense regulatory scrutiny on the 737 MAX family. The FAA imposed production caps and mandated changes to the flight control system. Certifying the MAX 7 and MAX 10 is a key milestone in restoring confidence in the program.

Potential Financial Impact

Certification is expected to unlock significant value for Boeing, as it has accumulated undelivered orders for these variants. However, the company still faces challenges related to production quality and supply chain.