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Boeing Co. (NYSE:BA) has decided to withdraw a crucial safety exemption request for its 737 MAX 7 and 10 planes, a move that could further delay the certification process for the aircraft.
What Happened: Boeing’s decision to withdraw the safety exemption request, which was revealed on Monday, comes in the wake of mounting safety concerns following a mid-air incident involving a 737 MAX 9 jet operated by Alaska Airlines (NYSE:ALK), Reuters reported. The incident, which occurred on Jan. 5, has raised serious questions about Boeing’s safety and quality control standards.
The withdrawal of the exemption request could potentially force Boeing to make design changes more quickly than initially planned, further complicating the certification timeline for the 737 MAX 7 and 10.
Boeing CEO David Calhoun decided to withdraw the request after being pressured by lawmakers in Capitol Hill meetings last week.
The ongoing delays in the certification process are affecting the fleet plans of major carriers such as Southwest Airlines (NYSE:LUV) and United Airlines (NASDAQ:UAL), the primary customers for the MAX 7 and MAX 10, respectively.
Why It Matters: The withdrawal of the safety exemption request is the latest development in Boeing’s ongoing safety crisis. The company’s safety and quality control standards have come under intense scrutiny following the mid-air incident, which has led to a series of setbacks in the certification process for the 737 MAX 7 and 10.
Earlier, the Federal Aviation Administration (FAA) had halted Boeing’s planned expansion of its 737 Max aircraft production in response to the incident involving a Max 9 aircraft. The FAA’s decision to freeze production rates has further complicated Boeing’s efforts to address the safety and quality control issues.
These developments have raised concerns about the potential impact on Boeing’s customer base. A BofA Securities analyst recently warned that the certification challenges and production freeze of the 737 MAX aircraft could lead to customer loss for Boeing.
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