A Federal Aviation Administration review panel on Tuesday certified the safety of the training for Boeing’s new software update for the 737 Max fleet, sending shares of the Chicago-based manufacturer up as it faces new calls to revamp its board of directors.
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Boeing is working on a final software patch -- which has yet to be submitted to the FAA -- that is expected to address errors in the Maneuvering Characteristics Augmentation System (MCAS), an auto-pilot program that can automatically force the plane’s nose down at takeoff to prevent stalling. The system led to two recent crashes involving the Max aircraft.
The FAA’s flight standardization board found the software update for the latest version of Boeing's popular 737 jet to be “operationally suitable." The panel only looked at the training aspects related to the software enhancement.
Meanwhile, a top shareholder adviser is cautioning investors against supporting members of Boeing’s audit committee in an April 29 vote after the recent crashes involving Max jets operated by Lion Air and Ethiopian Airlines.
The Institutional Shareholder Services also urged support for a proposal to appoint an independent board chair to “ensure that the company’s management is able to regain the confidence of regulators, customers and other key stakeholders,” according to voting recommendations provided to FOX Business.
Current CEO Dennis Muilenburg also serves as board chairman.
While Boeing initially intended to submit the software update to the FAA earlier this month, the timeline was delayed after the company uncovered a second software issue, as well as to "ensure that Boeing has identified and appropriately addressed all pertinent issues," the agency said previously.
Following the crashes, countries around the world, including the U.S., issued a ground stop for the Max fleet.
|AAL||AMERICAN AIRLINES GROUP INC.||34.37||-0.01||-0.03%|
|LUV||SOUTHWEST AIRLINES CO.||52.18||-0.58||-1.10%|
|UAL||UNITED CONTINENTAL HLDG.||88.28||-0.96||-1.08%|
The halt in operations has weighed on U.S. carriers like American Airlines, United Air Lines and Southwest Airlines, which collectively have been forced to cancel thousands of flights and extend the potential for interruptions through the lucrative summer travel season to mid-August.