Another Setback For Boeing's Potential 737 MAX 7 Approval, Some Submissions Rendered Incomplete

The Federal Aviation Administration (FAA) has asked Boeing Co BA to reassess its safety paperwork for the 737 MAX 7, saying some key documents submitted are incomplete and others need a reassessment.

The move marks another setback for Boeing's push to win approval for the 737 MAX 7, a year-end legal deadline.

The FAA cannot review the company's submissions "due to missing and incomplete information" related to cockpit crews' potential reactions to catastrophic hazards, according to an agency letter viewed by The Wall Street Journal. 

The FAA's request for a review covers system safety assessments for the 737 MAX 7, the shortest in Boeing's family of single-aisle jets and awaiting regulatory approval to carry passengers. 

The agency recently said the aircraft was at risk of not being certified by a December deadline set by Congress following two fatal crashes of the 737 MAX 8, an earlier version of the jet.

Boeing said safety remains the driving factor in its effort to meet all regulatory requirements in certifying the 737 MAX 7. The company said being thorough and transparent with the FAA will continue to be a priority.

Southwest Airlines Co LUV is a significant buyer of the 737 MAX 7 and has been planning to add the fuel-efficient jet to its fleet and retire older planes. 

Boeing delivered 51 airplanes in June, exceeding the 50-plane threshold for the first time since March 2019.

Price Action: BA shares are up 1.61% at $138.28 during the premarket session on the last check Tuesday.