Boeing Could Face An FAA Panel On Software Glitch This Week As Max 10 Certification Delay Holds: Report

The FAA's corrective action review board could convene as soon as Friday to weigh the software glitch on some Boeing 737 Max jets, Bloomberg reported.

• CARB will decide whether the problem is a safety-of-flight issue that requires further regulatory action. 
• The fault sits in versions 14 and 14.1 of flight-management computer software developed by GE Aerospace.
• The company also said earlier on Thursday that it won a U.S. Air Force award for the first four full-rate production MH-139A Grey Wolf helicopters.

The Federal Aviation Administration may reportedly convene a review panel as soon as Friday to weigh a software glitch on certain Boeing 737 Max jets that delayed the certification of its Max 10 aircraft.

Bloomberg first reported on the upcoming corrective action review board meeting on Thursday, citing people familiar with the matter. The corrective action review board (CARB) will decide whether the problem is a safety-of-flight issue that requires further regulatory action, such as an airworthiness directive setting out steps for owners and operators.

BA shares edged up 2% at the time of writing.

Boeing’s Software Glitch

The fault sits in versions 14 and 14.1 of flight-management computer software developed by GE Aerospace, not by Boeing itself. The software is not on every Max jet but is present on the Max 7, which the FAA certified in August, and the Max 10, which is slated for certification after completing flight testing.

The Wall Street Journal first reported the underlying problem on Saturday, citing Boeing documents. The Journal said an update to the flight-management computer can drop automated vertical navigation after a missed approach if the crew changes the planned path. In that narrow case, pilots may have to fly more themselves at low altitude. Boeing reportedly told operators in August that the issue was not an immediate safety risk and said it had reminded airlines of existing procedures.

Southwest and United have told Boeing they will not take new aircraft loaded with the particular software, the WSJ report said.

What The FAA Has Said

Administrator Bryan Bedford said Monday that the agency has not decided whether the glitch is a safety-of-flight issue, but that certification of the still-uncertified Max 10 will wait.

“We will be delaying the 10 until we’re satisfied that we don’t have an issue here,” he told reporters. Approval was expected by the end of September or in October. An FAA spokesperson also said safety dictates the certification timeline and the agency will not hesitate to act if needed.

The Max 10 is the largest jet in Boeing’s best-selling single-aisle family and has been years behind schedule. Boeing said that as of June 30 it accounted for about 31% of 4,404 undelivered 737s, or roughly 1,365 jets. Starting deliveries would let Boeing begin converting a large slice of that backlog into cash.

Trump Lauds Boeing

Earlier on Thursday, President Donald Trump applauded the 737 Max fleet for surviving a Flydubai cockpit emergency, in which the aircraft plunged after a copilot stabbed the pilot, terming it “an amazing show of precise and powerful structural planning and design.” He also added that Boeing makes the “finest commercial airliners in the sky.”

Separately, the company also said earlier today that it won a U.S. Air Force award for the first four full-rate production MH-139A Grey Wolf helicopters, lifting the total under contract to 42, of which Boeing has delivered 27.

How Did BA Retail Traders React?

On Stocktwits, retail sentiment around BA stock stayed ‘extremely bullish’ over the past 24 hours, while message volume remained at ‘high’ levels.

BA stock has fallen 13% year-to-date.

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