Boeing (NYSE:BA) will have to keep pleading with Congress for a postponement of the December deadline that requires criteria for cockpit safety alerts on two of the 737 MAX jets produced by the aircraft manufacturer.
This week, federal lawmakers decided not to include the potential waiver in the National Defense Authorization Act, a crucial measure that determines the Department of Defense’s annual budget. Today’s vote by Congress on the $857.9 billion defense bill is anticipated.
The Wall Street Journal stated that there is a chance that the deadline extension will be included in an omnibus spending measure, citing sources with knowledge of the situation.
The biggest danger is that Congress decides to pass a continuing resolution that maintains current levels of government expenditure. Typically, such legislation does not include clauses regarding non-appropriation-related issues. The newspaper said that Boeing declined to comment on the matter.
The Dec. 27 deadline was established by a 2020 law to raise the bar for new airplane safety standards. To assist pilots in crises, commercial jets must include cockpit alerting systems.
Boeing (NYSE:BA) may have to abandon its most recent 737 aircraft, the shorter MAX 7 and longer MAX 10, and bear considerable expenses if there is no deadline extension. According to Boeing (BA), it is safer for the new aircraft to have cockpits similar to those of operational 737 MAX aircraft.
As investors consider economic data that will probably have an impact on the Federal Reserve’s decision to change interest rates next week, Boeing’s (NYSE:BA) stock has largely traded in line with the overall market this week.
Boeing Stock Forecast
By 9:58 a.m. on Thursday, Boeing (NYSE:BA) had increased 4.2% as market benchmarks increased in response to the monthly jobs report. Policymakers may have fewer reasons to quickly raise interest rates if the labor market is worse.
The must-pass defense funding bill’s 4,408-page language also included no mention of the Journalism Competition and Preservation Act. Some news organizations would be temporarily protected from antitrust restrictions under the proposal, enabling them to bargain collectively with significant social media companies for compensation for their journalism.
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