Shares of Boeing (NYSE: BA) are slumping today, down by 2.3% as of 11:20 a.m. The plane manufacturer was the subject of a cautious note issued by an analyst yesterday, apparently raising concerns among investors.
Bank of America's note commented on a Wednesday report that American Airlines' Allied Pilots Association is opposing moves to exempt Boeing from a requirement that it install "modern cockpit alerting" systems in its Boeing 737 MAX 7 and MAX 10 airplanes in order to receive certification from the Federal Aviation Administration (FAA). As Reuters explains, unless the FAA certifies the MAX 7 and MAX 10 for flight by December, the new cockpit alert requirements will kick in for Boeing. And once those apply, Boeing will be required to make costly changes to both airplanes' designs to comply with the requirements.
For its part, Boeing says it shouldn't have to comply, because it's safer to have a single pilot alert system operating across all models of the 737, claiming there is less chance of confusing pilots. Nevertheless, the company doesn't expect to receive its exemption, and therefore doesn't expect to receive MAX 7 and MAX 10 approval before next summer.
Source Fool.com