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Approval Delays Could Hit 737 MAX Production

: Dec 9, 2019 - : 4:47 am

Significant additional regulatory requirements or delays in returning Boeing Co’s 737 MAX to commercial service could cause it to cut or temporarily halt production of the aircraft, Boeing stated in a letter that was released on Thursday.

According to a Reuters report, the letter was the company’s response to requests from the US Securities and Exchange Commission (SEC) to clarify the company’s comments in earlier financial filings on the 737 MAX grounding related to revenue and production.

In its letter it stated that it does not expect 737 MAX order cancellations due to the grounding of its best-selling single-aisle jet to have a material impact on revenues or earnings.

It cited the size of the 737 order backlog and its ability to shift planned customer delivery dates.

The correspondence was released on the Edgar filing system on Thursday.

Boeing has said extra delays or a cut in production are possible as regulators around the world evaluate the 737 MAX, including Boeing’s proposed upgrade of software at the center of both crashes and complementary training materials.

Boeing said last month that it expected the Federal Aviation Administration would lift the grounding around mid-December, though it did not expect the agency to complete its review of revised training requirements until January.

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