Setback for Boeing in Congress to obtain 737 Max extension safety deadline

Boeing will have to keep lobbying Congress for an extension to a December deadline that imposes standards for cockpit safety alerts on two versions of the airplane maker’s 737 MAX jets.

The US Congress has voted against granting Boeing more time to certify the Boeing 737-7 and the 737-10 without retrofitting upgraded safety systems, a major setback in its efforts to certify the final two 737 MAX variants.

Federal lawmakers this week opted against adding the possible waiver to the National Defence Authorization Act (NDAA), a key bill that sets the yearly budget for the U.S. Department of Defense. Congress is expected to vote today on the $857.9 billion defense bill.

There is a possibilty the deadline extension could be added to an omnibus spending bill, The Wall Street Journal reported, citing people familiar with the matter.

The biggest risk is that lawmakers instead approve a continuing resolution that keeps government spending levels steady. Such legislation typically doesn’t include provisions for policies that aren’t related to appropriations.

Boeing declined to commment on the matter, the newspaper reported.

The Dec. 27 deadline was imposed in a 2020 law to improve safety standards for new aircraft. It requires commercial jets to have cockpit-alerting systems to help pilots during emergencies.

Unless it receives a deadline extension, Boeing (BA) may have to scrap its latest 737 models, the shorter MAX 7 and longer MAX 10, and absorb significant costs. Boeing (BA) has contended that it’s safer for the new planes to have cockpits that are like those of existing 737 MAX jets.

Boeing’s (BA) stock this week has mostly traded in line with the broader market, as investors weigh economic data that are likely to affect the Federal Reserve’s decision next week on interest rates.

Boeing (BA) jumped 4.2% by 9:58 a.m. Thursday as market benchmarks rose in reaction the monthly jobs report. A weaker labor market may give policymakers one less reason to raise interest rates aggressively.

The 4,408-page text of the must-pass defense funding bill also didn’t include any reference to the proposed Journalism Competition and Preservation Act. The law would grant a temporary exemption from antitrust laws to some news outlets, letting them bargain collectively with major social media companies for payments for journalism. Reuters.com