Boeing Stock Up 5% as FAA Relaxes Oversight, Turkish Airlines Orders 225 jets

Boeing will regain control from the Federal Aviation Administration (FAA) over final safety inspections on its 737 MAX jets. According to media reports, the decision may be announced soon, which is a significant relaxation of the restrictions imposed in 2019 following two fatal accidents.

The regulator is likely to phase in inspections of Boeing. While the company will still be responsible for some safety sign-offs, FAA inspectors will still provide airworthiness certificates for aircraft that carry passengers. This step represents a healthier return to industry-as-usual practice, in which routine checks are left to manufacturers, and the FAA is free to focus its resources on higher-risk areas.

The move could also give Boeing more flexibility in terms of delivery schedules. Until now, the company needed to align approvals with government inspectors, which usually proved to be a timeline killer. Sources said the FAA is willing to give Boeing the go-ahead to increase the monthly production of 737 MAX to 42 jets, up from 38. Boeing said it would keep this pace for several months to ensure stability before considering further increases.

Turkish and Norwegian Expand Boeing Orders

A regulatory shift has coincided with strong airline demand. Turkish Airlines has ordered 75 wide-body Boeing 787 jets (50 firm and 25 options) to be delivered between 2029 and 2034. The carrier also signed a deal for an additional 150 narrow-body 737 MAX aircraft, comprising 100 firm orders and 50 options. Finalization of the narrowbody order is subject to continuing discussions with engine supplier CFM International.

Norwegian Air has also undertaken additional delivery agreements for 30 more 737 MAX 8 jet aircraft options, thus marking the airline's total firm order for 80 aircraft. As the deal stands, Boeing and Norwegian have agreed to postpone some of the delivery dates, with the last aircraft scheduled for delivery in 2031.

Market Response to Regulatory and Commercial Events

Investor sentiment was optimistic following the FAA decision and the large airline orders. Boeing's stock rose nearly 5% in the opening session of trading, signaling confidence in the company's operational turnaround. Analysts noted that the company's financial outlook could be boosted due to regulatory flexibility and strong commercial demand, which could benefit Boeing.

These developments could mark a significant turning point in Boeing's history. The company has been heavily monitored and has struggled with production since 2019. As restrictions and new airline commitments have eased, the company is regaining its footing with regulatory compliance and meeting market demand.

Also Read: Robotics in Aerospace: Aviation and Space Breakthroughs