The Wall Street Journal: Boeing dealt setback on new 737 MAX models

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Federal lawmakers dealt a setback to Boeing Co., BA, -0.49%  proposing a defense bill that didn’t exempt two new 737 MAX models from a new regulatory requirement, as the plane maker had sought.

Negotiators in Congress dropped the potential waiver from the National Defense Authorization Act, an annual must-pass bill that lawmakers filed late Tuesday. The waiver’s exclusion from the bill leaves Boeing fewer options during the current Congress to avoid a requirement to perform costly and time-consuming upgrades to the cockpits of its newest 737 models.

Boeing declined to comment. The company’s shares declined about 2% in early Wednesday trading, while major U.S. stock indexes were flat.

Boeing faces a Dec. 27 deadline imposed by a 2020 law, which aimed to make new aircraft safer by requiring modern cockpit-alerting systems to help pilots resolve emergencies. At the time, Boeing didn’t expect the requirement would affect its newest 737 models, the shorter MAX 7 and longer MAX 10. But Federal Aviation Administration approvals have taken longer than the company had anticipated. 

An expanded version of this article was published on WSJ.com.

This article was originally published by Marketwatch.com. Read the original article here.

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