Boeing (NYSE:BA) announced in a filing with the US Securities and Exchange Commission on Wednesday that the first delivery of the highly anticipated Boeing 737 MAX 7 has been pushed back to 2024. Despite this setback, the company maintains its optimism for the Federal Aviation Administration (FAA) to grant certification for the MAX 7 and commence FAA certification flight testing for the MAX 10 during 2023. The MAX 10 is currently scheduled for its inaugural delivery in 2024.
The competition between Boeing and Airbus (AIR.PA) in the narrowbody markets hinges on the success of both the MAX 7 and MAX 10. The delay in delivering the MAX 7 to its launch customer, Southwest Airlines (NYSE:LUV), extends the anticipated entry into service, originally planned for 2022. Such a delay could pose challenges to the carrier’s expansion plans, as Southwest exclusively relies on the 737 for its operations.
Despite the delay, Boeing’s shares saw an increase of 7.7% on Wednesday afternoon due to strong second-quarter results, surpassing Wall Street’s expectations.
Sources familiar with the matter revealed that Boeing and the FAA have been engaged in an extended dialogue over the safety management system paperwork required to secure certification for the MAX 7. However, no specific timeline has been set for the FAA to approve Boeing’s submissions. The FAA emphasized that safety remains the top priority in the certification process.
Boeing’s CEO, Dave Calhoun, had previously expressed confidence in the MAX 7’s delivery, targeting this year, followed by the MAX 10 in the subsequent year. Nevertheless, in May, Mike Fleming, Boeing’s senior vice president for commercial development programs, acknowledged the considerable time taken for the MAX 7 certification due to newly implemented documentation requirements.
With the MAX 10, Boeing seeks to compete with Airbus’ successful A321 neo, which has outperformed the MAX 9 in various competitions. Conversely, the smaller MAX 7 competes with Airbus’ A220.
Southwest’s CEO, Bob Jordan, indicated earlier that he did not anticipate putting the MAX 7 into service in 2023, estimating a six-month process from delivery to service entry, making early 2024 the best-case scenario.
Alaska Airlines (NYSE:ALK) also expressed eagerness to start taking deliveries of the larger Boeing 737 MAX 10 as soon as it is certified, enabling the airline to accommodate more passengers effectively.
Prior to securing approval for the MAX 10, Boeing must first gain FAA approval for the smaller MAX 7. Both variants have faced significant delays, following heightened regulatory scrutiny after the MAX 8’s certification process was heavily criticized following fatal crashes in 2018 and 2019.
Featured Image: Megapixl
Author Faith Yakubu 
