Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Boeing 737 MAX report may boost effort to reform U.S. airplane certification

Published 07/01/2020, 09:37 AM
Updated 07/01/2020, 09:40 AM
© Reuters. A Boeing 737 MAX airplane lands after a test flight at Boeing Field in Seattle

By David Shepardson

WASHINGTON (Reuters) - A new report into the Federal Aviation Administration's decision to certify the Boeing (NYSE:BA) 737 MAX may help proponents seeking reforms to the long-standing practice of delegating some aircraft certification tasks to manufacturers.

On Wednesday, the Transportation Department's inspector general released a 52-page report that said Boeing withheld key information about a crucial safety system known as MCAS, that is tied to two fatal crashes and raises questions about whether Boeing employees performing work for the FAA faced undue pressure.

On June 16, Senate Commerce Committee chairman Roger Wicker and the top Democrat on the panel Maria Cantwell introduced legislation to strengthen FAA oversight of aircraft certification.

It aims to eliminate the ability of aircraft makers like Boeing to unduly influence the certification process, marking the most significant step toward reforms following the 2018 and 2019 crashes in Indonesia and Ethiopia that killed a total of 346 people.

Representative Peter DeFazio, who chairs the House Transportation and Infrastructure Committee, told Reuters last week he planned to introduce his airplane certification reform bill in September. He praised some aspects of the Senate measure but said "our bill will be stronger."

DeFazio praised the inspector general's report.

"The more scrutiny we put on Boeing and the FAA, and the more we dig into why and how the system failed so horribly and led to the deaths of 346 innocent people, the better chance we have of fixing the system to ensure no family has to endure this nightmare again," DeFazio said in a statement.

DeFazio said the IG report reinforced some findings in the committee's ongoing 737 MAX investigation, "including Boeing’s efforts to conceal critical information from regulators in its rush to get the MAX to market."

© Reuters. A Boeing 737 MAX airplane lands after a test flight at Boeing Field in Seattle

Boeing said Tuesday it was "committed to transparency with the FAA during all aspects of the airplane certification process." FAA said it is making significant changes to how it oversees certification tasks delegated to Boeing.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.