Boeing CEO Kelly Ortberg Targets Year-End Certification For 737 MAX-7, MAX-10 Amid FAA Scrutiny, Says Variants Are ‘Very Important’ To Customers And Backlog – Boeing (NYSE:BA)
Boeing Co. BA CEO Kelly Ortberg said that the company aims to complete certification of its delayed 737 MAX-7 and MAX-10 variants by year-end, marking a critical milestone for the aerospace giant’s commercial recovery strategy.
What Happened: Speaking to Aviation Week at Boeing’s Renton, Washington assembly facility, Ortberg emphasized the urgency of getting both aircraft variants through Federal Aviation Administration approval.
“We’re hoping to get the two variants of the 737 MAX wrapped up this year so we can start deliveries of the -7 and the -10, two airplanes that are very, very important to our customers and our backlog,” Ortberg stated.
The certification push comes as Boeing operates under an FAA-imposed production cap of 38 aircraft per month following safety issues that grounded the MAX fleet globally for nearly two years after fatal 2018 and 2019 crashes.
Boeing faces mounting pressure from ongoing regulatory scrutiny. The Justice Department recently offered the company a deal to avoid criminal prosecution over the 737 MAX crashes that killed 346 people, though victims’ families have criticized the proposed agreement as insufficient accountability.
Ortberg acknowledged the certification delays have created administrative bottlenecks with regulators. “We need to work together to streamline that process. It has gotten way too elongated,” he said, noting improved cooperation with new FAA leadership and Transportation Secretary Sean Duffy.
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Why It Matters: The MAX-7 and MAX-10 certifications represent crucial revenue drivers for Boeing’s commercial division, which holds approximately half a trillion dollars in backlog orders. Boeing stock has gained 0.93% to $202.89 as investors monitor the certification timeline and production ramp-up progress.
Ortberg stressed Boeing’s commitment to quality over speed in the certification process. “We’re going to do it in a smart, safe way, in accordance with our safety and quality plan,” he said, positioning the certifications as fundamental to Boeing’s operational and financial recovery.
Price Action: Boeing Co.’s stock closed at $201.50 on Wednesday, up 0.23% for the day. In after-hours trading, the stock rose to $202.89, gaining an additional 0.69%. Year to date, Boeing shares have increased by 17.24%.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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