Boeing Expects To Gain FAA certification For Two 737 Max Variants By Year-End

Boeing (BA) CEO Kelly Ortberg told Aviation Week in an interview that it plans to wrap up the certification processes of two variants of its 737 Max jets by the end of the year.

The Max-7 and -10 models are, respectively, the smallest and largest variants of the aerospace giant’s best-selling narrow-body aircraft. De-icing issues have delayed the company’s quest to gain Federal Aviation Administration approvals for the jets.

Ortberg said in the interview published on Wednesday that the two airplanes “are very, very important” to its customers and backlog.

Boeing’s customers have ordered nearly 1,200 of the Max-10, alongside 332 of the Max-7.

The certifications are a key step towards stabilizing the company's production, which has been plagued by compliance issues and worker strikes.

“I’m not too concerned that we’ve fallen significantly behind. We’re doing things in our labs that we’re not talking about to be prepared for the next generation,” Ortberg reportedly said about its competition with Airbus.

He added the company is making “great progress” related to its widebody 777-9 aircraft.

Boeing is also on course to boost its Max production to an FAA-imposed limit of 38 per month, which is seen as crucial to halting the company’s cash burn.

“We’re in a cash-negative situation, and for us to be generating cash, we need to have the MAX production up around 38-40 a month,” Ortberg said to Aviation Week.

Retail sentiment on Stocktwits was in the ‘bearish’ (33/100) territory, while retail chatter was ‘low.’

Boeing stock has risen 13% year to date (YTD).

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