(Bloomberg) — A software glitch affecting Boeing Co. 737 Max aircraft was determined not to pose a safety risk by a Federal Aviation Administration panel, a positive outcome for the US planemaker seeking regulatory approval for the largest variant of the popular narrowbody family.
The so-called corrective action review board on Friday determined a software issue in Boeing 737 Max flight computers “is not a safety concern,” the agency said in a statement. Boeing rose 1.6% to $195.40 as of 2:47 p.m. New York time.
“The FAA’s Corrective Action Review Board made that determination because pilots retain full control of the aircraft and the indications to the flight crew are clear and unambiguous,” the agency said. The FAA will consider further actions as needed, it added.
Boeing did not immediately respond to a request for comment.
The board was convened to look into the software issue that can occur when a pilot needs to abort a landing attempt, forcing the autopilot into a simpler level of automation for pitch control. That increases the crew’s workload in comparison with the standard mode.
FAA Administrator Bryan Bedford said the agency would delay certification of Boeing’s 737 Max 10 until it made a determination on whether the bug posed a safety risk. The agency certified the smaller Max 7 variant in August with the affected software.
The Max 10 is already years behind schedule and is central to helping Boeing generate cash and improve its balance sheet after several tumultuous years. Orders for the aircraft currently exceed 1,500.
The software issue was a blemish in an otherwise positive run for the company in recent days. The planemaker reached an agreement with its unionized white-collar workers Thursday to avert a costly strike and beat Northrop Grumman Corp. for a contract to produce the Navy’s next fighter jet.
Boeing has also received praise, including from President Donald Trump, for the structural integrity of its 737 Max aircraft after one operated by FlyDubai took a harrowing nosedive when a pilot stabbed his colleague in a possible attempt to crash the plane.
(Updates with new details from fourth paragraph.)
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