By David Shepardson
(Reuters) – A Federal Aviation Administration review board said on Tuesday that a software update to the grounded Boeing (NYSE:) 737 MAX aircraft was found to be “operationally suitable.”
Boeing said earlier this month it planned to submit a software upgrade and additional training for the anti-stall system known as Maneuvering Characteristics Augmentation System (MCAS) on the planes to the FAA in the coming weeks for approval.
The draft report from the FAA Flight Standardization Board (FSB) also said additional training was needed for MCAS, but not required to be done in a simulator. The board said ground training “must address system description, functionality, associated failure conditions, and flight crew alerting.”
Boeing shares were up 2 percent in afternoon trading.
Although shares bounced higher on the FAA news, investors were advised by the proxy firm Institutional Shareholder Services to press the company to vote for a shareholder proposal to split the role of chairman and chief executive.
Boeing did not immediately comment. The FAA still must approve the software package and training once Boeing formally submits them to the agency, an FAA spokesman said.
More than 300 Boeing 737 MAX jets have been grounded worldwide after nearly 350 people died in two crashes, one in Indonesia in October and another in Ethiopia last month.
The FAA is also convening a joint review with aviation regulators from China, Europe, Canada, Brazil, Indonesia, Ethiopia and other countries. American and Southwest have canceled flights through early August because of the 737 MAX grounding.
The FSB board consists of experts, pilots and engineers. The FSB that reviewed the 737 MAX before it was certified in 2017 had unanimously agreed that additional “flight training was not needed” because there were no significant differences in handling compared to the earlier 737, acting FAA administrator Dan Elwell said at a Senate hearing last month.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.