By Dhirendra Tripathi
Investing.com – Boeing (NYSE:BA) was down more than 1% in Monday’s premarket trading on report the plane manufacturer is not likely to receive certification for its 777X long-range aircraft until mid-to-late 2023 at the earliest.
According to CNBC, the Federal Aviation Administration has informed the company there are numerous technical issues that need to be resolved.
The news overshadowed another report that put the company in contention for a part of the $30 billion order that United Airlines (NASDAQ:UAL) plans to place for 270 narrow-body jets.
A Reuters report said the order could include up to 200 Boeing 737 MAX and some 70 Airbus A321neo, which competes with the longer-range versions of the MAX family.
The report hints at a stricter approach toward Boeing in the approval of new models, in the wake of criticism that the FAA was too easily swayed by Boeing's lobbyists during the certification process for the 737 MAX. Two fatal crashes by that model led to a lengthy grounding and intense scrutiny of relations between the agency and its most important counterparty in commercial aviation.
Adverse developments at its own end and the pandemic have kept Boeing busy for the last two years. Problems from the 737 MAX disaster still ripple through the company. Just last month, it secured the FAA’s approval for an electrical fix that had kept some 100 planes grounded.