Boeing May Not Win Certification For 737 MAX 10 By Year-End, Warns FAA: Reuters

The U.S. Federal Aviation Administration (FAA) warned Boeing Co BA earlier this week that it might not gain certification of a lengthened version of the 737 MAX ahead of a key safety deadline set by Congress, Reuters reported, citing a source familiar with the matter.

According to the source, Ian Won, acting manager of the FAA aviation safety office that oversees Boeing, asked the U.S. planemaker in a letter dated March 21 to provide a "mature certification schedule." Won also sought updates on progress for both the 737 MAX 10 and 777-9.

The 737 MAX 10 is longer than earlier 737 MAX narrow-body airliners. The 777-9, a wide-body aircraft, is the initial version of an updated 777 design known as 777X.

"With regard to the current Boeing Model 737-10 program maturity, the FAA is concerned it will be significantly challenged to meet the directive" of Congress in 2020, Won stated in the letter.

The FAA letter asked Boeing for an update on its expected dates for major milestones needed before the planes can win certification and enter commercial service.

Won cautioned that the existing certification schedules for the 737 MAX 10 and 777-9 "are outdated and no longer reflect the program activities" as understood by the FAA.

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Boeing stated that it continues "to work transparently with the FAA to provide the information they need and remain committed to meeting their expectations, including regarding 777-9 and 737-10 certification."

Boeing also stated that they are working to provide official documentation of specific milestones within the certification program in accordance with the FAA's request."

Price Action: BA shares are trading lower by 0.10% at $188.87 during the premarket session on Friday.