Controllers Win Delayed Raise as Boeing’s Biggest 737 Nears Approval

US air traffic controllers will start receiving a long-delayed pay increase from Sunday. Boeing Co., meanwhile, is within days of certification for its largest 737 Max, capping a weekend of progress for an industry strained by staffing shortages and production setbacks.

The Federal Aviation Administration and the National Air Traffic Controllers Association agreed late last week on a 2.8% raise, effective Oct. 18 and backdated to Jan. 1. Congress authorized a 3.8% increase in April to bring controllers in line with military pay, but they had received only 1%. The rest of the roughly $140 million package was conditional on efficiency gains.

Under the deal, controllers will badge in and out to track working time. Local managers and union representatives will draw up shift guidelines that put more staff on duty during peak traffic, and the process for reassigning controllers to understaffed facilities will change. “Fair compensation and better working conditions are essential,” NATCA President Nick Daniels said. The agreement follows weeks of pressure from Democratic senators, who accused the agency of using the raise as leverage to extract longer hours from an overstretched workforce.

Boeing cleared a key regulatory hurdle on Friday when the FAA’s Type Certification Board met on the 737 Max 10. People familiar with the matter described the session as successful. Approval could come as soon as next week, once Boeing submits a final statement of completion and agency management signs off.

The Max 10 was originally due to enter service in 2020. It completed certification flight testing in July after 976 flights and more than 2,060 flight hours. Earlier this month, the FAA ruled that a navigation-software glitch was not a safety concern. Airlines have ordered nearly 1,500 of the jets, about 30% of Boeing’s outstanding 737 backlog.