By Sam Boughedda
It was reported today that Congress is set to add an extension to the new safety standard deadline for Boeing's (NYSE:BA) 737 MAX aircraft as part of a government spending bill.
Following the news, BofA analysts, who have a Neutral rating and $190 price target on Boeing, said: "On December 7th we wrote that Boeing had two roads to certify the MAX -7/-10 beyond the initial December 27, 2022 deadline. (1) Either Congress could slip the extension into the defense bill or another omnibus bill before year end or (2) Boeing would integrate the new ACSAA-Compliant Engine Indicating and Crew Alerting System (EICAS) on the MAX-10. Today it was announced that Congress is set to add an extension to the deadline as part of a government spending bill."
They added that lawmakers are also expected to require new safety enhancements for existing MAX aircraft, as proposed by Senate Commerce Committee Chair Maria Cantwell.
"Maria Cantwell’s safety enhancements, likely to be required within two to three years, include (1) a third measure of the jet’s angle of attack and (2) a switch that would enable the pilot to silence an erroneous stick shaker,” the analysts added. "These are in line with Transport Canada and EASA’s required retrofits when the regulators allowed the MAX to return to service."
Boeing shares are up over 1% at the time of writing.