Boeing stock falls after regulators detect new software glitch in 737 Max

The fallout of the 737 Max debacle is creating more problems for Boeing (NYSE: BA) even as efforts are being made to resume operations of the grounded jet. In a new setback for the aircraft maker, an inspection carried out by the Federal Aviation Administration (FAA) revealed more software glitches, raising fresh questions about the airworthiness of 737 Max. Boeing stock dropped around 3% in Thursday’s premarket session.

In the wake of the new findings, the International Air Transport Association (IATA) called for arrangements to provide training to pilots before operations resume, and asked the federal regulators to coordinate the process. According to the agency, the newly detected technical flaw poses a serious risk and needs to be rectified to ensure passenger safety.

In the wake of the new findings, the IATA has called for arrangements to train pilots before operations resume

Since the FAA is conducting a comprehensive review of the plane’s intricate software/hardware system, the market will be following the process closely for further updates. It is estimated that the latest developments will further delay the resumption of 737 Max’s services at least by 6-9 more months.

Also see: Boeing stock goes into a tailspin amid grounding of 737 Max

Boeing reportedly said the software issue pointed out by the FAA was not covered by the changes it had planned for the software system called MCAS – a malfunction of which is believed to have caused the recent accidents involving the aircraft.

Meanwhile, Reuters Thursday reported that airline companies have asked aviation regulatory agencies to pitch in and coordinate the efforts to revive the 737 Max planes, in view of the upcoming summer travel season. They cautioned that the uncertainty triggered by the FAA report might lead to large-scale flight disruptions, affecting the sector adversely.

Earlier, Boeing’s efforts to fix the automated software system, which is suspected to have caused the accidents, had given rise to hopes that the grounded jets would resume operations soon.

A Boeing 737 Max plane operated by Ethiopian Airlines crashed on March 10, killing 157 people onboard. Last year, a Lion Air flight crashed in Indonesia soon after take-off, in which 189 people died.

Boeing shares have fallen about 12% since early March, after the accident in Ethiopia. The stock is up 16% since the beginning of the year.

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