Narrative:

Captain distraction at leveloff altitude. First officer flying aircraft descended 700 ft through assigned altitude. Captain recognized deviation 550 ft low and instructed first officer to climb back to assigned leveloff altitude. ATC called aircraft 600 ft low and asked assigned altitude and issued a 30 degree course change. Aircraft climbed back to FL330 and was cleared back to original heading. Aircraft below assigned altitude less than 40 seconds. This aircraft is 1 of only 3 aircraft out of 54 that does not have automatic altitude capture! (Habitual routine.)

Google
 

Original NASA ASRS Text

Title: A B737 ACR FLC DSND BELOW THEIR ASSIGNED ALT WHEN THE FLC WAS DISTR. THE ACFT IS NOT EQUIPPED WITH ALT CAPTURE MODE.

Narrative: CAPT DISTR AT LEVELOFF ALT. FO FLYING ACFT DSNDED 700 FT THROUGH ASSIGNED ALT. CAPT RECOGNIZED DEV 550 FT LOW AND INSTRUCTED FO TO CLB BACK TO ASSIGNED LEVELOFF ALT. ATC CALLED ACFT 600 FT LOW AND ASKED ASSIGNED ALT AND ISSUED A 30 DEG COURSE CHANGE. ACFT CLBED BACK TO FL330 AND WAS CLRED BACK TO ORIGINAL HDG. ACFT BELOW ASSIGNED ALT LESS THAN 40 SECONDS. THIS ACFT IS 1 OF ONLY 3 ACFT OUT OF 54 THAT DOES NOT HAVE AUTOMATIC ALT CAPTURE! (HABITUAL ROUTINE.)

Data retrieved from NASA's ASRS site as of July 2007 and automatically converted to unabbreviated mixed upper/lowercase text. This report is for informational purposes with no guarantee of accuracy. See NASA's ASRS site for official report.