US FAA approves 737 MAX-7 for production, sends Boeing shares up 5%

Investing.com -- The Federal Aviation Administration on Monday has approved the Boeing 737 MAX-7, issuing an amended type certificate and an updated Production Limitation Record following nearly a decade of technical review and safety assessments, sending shares of Boeing sharply up by 5% in afternoon hours of trading.

The approval marks the completion of an extensive certification process during which the FAA conducted or directly reviewed work on flight controls, system safety, human factors, flightcrew alerting, and other safety-critical systems. The regulator also required additional testing, design modifications, and engineering analysis before granting certification.

The FAA said the MAX-7 incorporates several changes required under the Aircraft Certification, Safety, and Accountability Act and recommendations from the National Transportation Safety Board. These include updated flight-control software, an enhanced flightcrew alerting system, and a redesigned engine anti-ice system intended to prevent engine inlet overheating and improve structural safety.

The FAA said safety inspectors will continue to remain at Boeing manufacturing facilities to oversee production, monitor the company's Safety Management System, and assess its safety culture as manufacturing ramps up.

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