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Congress Passes Provision Allowing Boeing 737 MAX to Fly Again

On Tuesday, lawmakers revealed an omnibus spending bill that would provide Boeing Co. with a reprieve from a regulatory deadline concerning safety features on two 737 MAX models.

December 20, 2022
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On Tuesday, lawmakers revealed an omnibus spending bill that would provide Boeing Co. with a reprieve from a regulatory deadline concerning safety features on two 737 MAX models.

The aircraft manufacturer has warned that it may scrap the two new jets if it does not receive an exemption from the December 27th deadline. According to current federal regulations, any jets approved for service after that date must be equipped with advanced cockpit-alerting systems to assist pilots in emergency situations.

The omnibus bill includes a provision that would necessitate certain safety improvements on all 737 MAX jets, although not as extensive as what is mandated by existing regulations, until they are approved by U.S. air-safety authorities.

Boeing's stock has increased by 2.05%. Refused to give a statement.

The House and Senate are anticipated to cast their ballots on the proposed legislation before the current lame-duck Congress concludes its term. Negotiations between congressional leaders concerning the bill's contents have been ongoing for weeks and are not expected to be altered prior to the vote.

In 2020, a law was passed with the intention of making new aircraft safer after two MAX jets tragically crashed, resulting in the loss of 346 lives. Boeing had assumed that two years would be enough time to get the new jets approved with their existing cockpits, however, the Federal Aviation Administration's approval process has taken longer than expected. As a result, a Dec. 27 deadline was established.

Boeing's attempt to get legislators to include a MAX waiver in a defense bill was unsuccessful. Without assistance from Congress, the future of the 737 MAX jets is uncertain. The FAA declared that they would suspend their assessment of Boeing's submissions regarding the jets' alert systems in compliance with the congressional mandate. The jets must receive FAA certification before they can be used for passenger flights.

Boeing has warned that it may have to cancel its orders for the new jets if Congress does not act to extend the deadline. This could lead to potential financial losses for the company. Boeing has around 1,000 orders for the jets, but airlines could instead opt for the already-approved 737 MAX 8 and MAX 9 models, or purchase aircraft from the European plane maker Airbus.

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Boeing has declared that it would be more secure to keep the same overall cockpit design for all 737 MAX aircraft.

The pilot unions of Southwest Airlines Co. and the Air Line Pilots Association are in support of Boeing's stance. Southwest has placed an order for MAX 7 jets, while United Airlines Holdings Inc. and Delta Air Lines Inc. have requested MAX 10 jets.

The pilot union of American Airlines and the families of those who perished in the two 737 MAX crashes have expressed their opposition to the removal of the deadline, claiming that the revamping of the cockpits would enhance the safety of the aircraft. The tragedies occurred in 2018 and 2019.

The spokesperson for the American pilot union expressed disapproval of the bill's leniency towards Boeing. "The MAX aircrafts that are currently in the air are secure, but why wouldn't we strive for even greater safety if it is achievable?" they asked.

Industry experts have suggested that Boeing may be at a long-term disadvantage compared to Airbus without the MAX 10. Airbus has been the leader in the market for narrow-body aircraft, and the MAX 10 is the only option Boeing has for customers who are looking for single-aisle jets that can transport more passengers over longer distances.

The omnibus bill includes a waiver for the 737 MAX, which is similar to a plan proposed by Senator Maria Cantwell of Washington. Cantwell is the chair of the Senate Commerce Committee and her state is the home of Boeing's commercial-jet unit. She has advocated for the implementation of safety improvements in addition to the deadline extension.

On Tuesday, Ms. Cantwell expressed her opinion that the FAA's safety approval process should not be rushed. She believes that the safety-first alternative is much more beneficial than the no-strings-attached approach that was initially proposed. She believes that passengers should be assured that the entire MAX fleet will be consistent and secure.

The spending bill includes a waiver that would necessitate the installation of safety features on both newly produced 737 MAX jets and the existing fleet of these planes, features that were originally intended for the 737 MAX 10.

Boeing has been promoting the safety features they have recently developed, with the goal of meeting the requirements of the 2020 law, according to sources familiar with the situation. The company has stated that the features would reduce the amount of work for pilots if the airplane sensors send out incorrect information, and would involve hardware modifications.

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Eric Ng
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