FAA Greenlights Boeing's 737 MAX-7 After Near-Decade Review

Boeing's stock surged 7.4% to around $232 on Monday after the Federal Aviation Administration (FAA) certified the company's 737 MAX-7 model, a move that comes nearly a decade in the making.

The certification was a long-awaited milestone for Boeing, which had faced intense scrutiny following fatal crashes involving the larger MAX 8 variant and stricter safety standards from the FAA. The review of the MAX-7 included evaluation of its flight controls, flightcrew alerting system, and system safety assessments.

Boeing was required to make updates to the MAX-7's flight-control software, flightcrew alerting system, and engine anti-ice system after realizing that extended use in dry conditions could overheat part of the engine. The company also withdrew an exemption request for the MAX-7 following a door plug blowout incident on Alaska Airlines.

The 737 MAX-7 is the smallest model of Boeing's 737 MAX planes and can carry around 150 passengers. The certification marks a significant step forward for Boeing, which has built around 30 units of the MAX-7 and nine units of the MAX-10. The larger MAX-10 model accounts for at least 28% of outstanding MAX orders.