FAA Greenlights Boeing 737 MAX-7 After Decade-Long Review
Boeing's stock surged over 7% on Monday after the Federal Aviation Administration certified the company's 737 MAX-7 model, marking a significant milestone in an extensive review that spanned nearly 10 years.
The FAA's evaluation included assessment of the MAX-7's flight controls, flightcrew alerting system, and system safety. Boeing made updates to its flight-control software, flightcrew alerting system, and engine anti-ice system after realizing it could overheat in dry conditions.
The review faced challenges following two fatal crashes involving the 737 MAX 8 variant, which killed 346 people, and led to the grounding of the entire 737 MAX fleet. The FAA also flagged 31,000 737 MAX seats for inspection due to improper installations that could result in seat separation during emergencies.
Boeing has built around 30 units of the MAX-7 and nine units of the MAX-10, with the larger MAX-10 model accounting for at least 28% of outstanding MAX orders. The FAA approval is expected to boost Boeing's stock further as it pushes into the positive territory for the year.