Report: Boeing CEO Isn’t Ruling Out Canceling 737-10

Thursday, July 07, 2022 at 05:34 PM ET

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Boeing faces a deadline of this December to receive certification of its 737-10, the largest variant of the 737 Max program. [Courtesy: Boeing]

Key Takeaways:

Boeing CEO David Calhoun is reportedly willing to cancel the 737-10 program if it doesn't receive FAA certification by a December deadline without requiring a costly flight deck redesign.
The looming deadline, set by a 2020 law, would necessitate an updated flight-crew alerting system, distinguishing the 737-10 from other Max variants and potentially adding significant development costs and pilot training.
Calhoun's "all-or-nothing" stance is a high-stakes gamble aimed at pressuring Congress for deadline relief, but it faces opposition from lawmakers and raises concerns among industry analysts due to the 737 Max's troubled history and heightened FAA scrutiny.
The 737-10 is a vital variant for Boeing, competing directly with the Airbus A321neo, and its cancellation could have significant market and financial repercussions for the company and the industry.

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Boeing (NYSE: BA) president and CEO David Calhoun reportedly is not ruling out canceling development of the 737-10, as a December deadline approaches for FAA certification.

The report, published Thursday by Aviation Week, suggests Calhoun may be willing to play a high stakes game of chicken with Congress over whether to offer deadline relief for the aircraft formerly known as the 737 Max 10.