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Boeing Jumps 5% as FAA Loosens Grip and Mega Orders

According to the Wall Street Journal, Boeing is slated to regain authority from the Federal Aviation Administration (FAA) to perform final safety checks on its 737 MAX jets. The approval could be anno

According to the Wall Street Journal, Boeing is slated to regain authority from the Federal Aviation Administration (FAA) to perform final safety checks on its 737 MAX jets. The approval could be announced as soon as Friday, one person noted. Inspections on the 787 Dreamliner are also expected to be relaxed.

Boeing shares jumped nearly 5%.

Employees of Boeing would regain the authority to perform safety signoffs in phases, the sources said. FAA inspectors will remain involved in issuing so-called airworthiness certificates, which are required for each aircraft to fly with passengers.

The FAA typically delegates routine inspections to aerospace manufacturers so it can concentrate limited resources on more critical tasks. However, after two fatal 737 MAX crashes, the regulator tightened oversight in 2019, requiring FAA inspectors themselves to check new aircraft.

This restriction meant Boeing could not manage delivery schedules flexibly and had to align with government employees’ calendars to obtain safety approvals.

Sources also said the FAA is expected to allow Boeing to raise production of its 737 MAX to 42 aircraft per month, up from the current limit of 38.

Boeing stated that if approved to increase monthly 737 MAX output to 42 units, it would maintain that level for several months to monitor for issues before raising production by another five per month.

Strong Demand for Boeing Aircraft: Turkish and Norwegian Place Big Orders

Following talks between Turkey President Erdogan and Donald Trump, Turkish Airlines on Friday announced it will purchase 75 wide-body B787-9 and B787-10 aircraft from Boeing, including 50 firm orders and 25 options. Deliveries are scheduled between 2029 and 2034.

Turkish Airlines also said it completed negotiations with Boeing on another 150 aircraft purchase, consisting of 100 firm and 50 option orders for narrow-body 737-8/10 MAX models. Orders for the 737-8/10 MAX aircraft will be placed subject to successful completion of discussions with engine manufacturer CFM International.

Norwegian, meanwhile, is expanding its existing Boeing order by exercising options to purchase 30 additional 737 MAX 8 aircraft, bringing its total firm order to 80.

In connection with this option exercise, Norwegian and Boeing agreed to adjust certain delivery dates, with the final aircraft in the order now scheduled for delivery in 2031.

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