Narrative:

Maintenance notified cockpit in-flight that they had misunderstood the mechanic and had dispatched the aircraft illegally. They thought the write-up was for the 'altitude hold' function only of the MCP. The write-up included 'stabilizer out of trim light.' captain had asked the mechanic if it would affect VNAV. He was told no. Paperwork was adjusted in ZZZ for the new write-up and the correct cockpit stickers were put in place.

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Original NASA ASRS Text

Title: A B737-300 WAS DISPATCHED IN NON COMPLIANCE WITH AUTOPLT FUNCTIONS THAT WERE IN CONFLICT WITH THE MEL REQUIREMENTS.

Narrative: MAINT NOTIFIED COCKPIT INFLT THAT THEY HAD MISUNDERSTOOD THE MECH AND HAD DISPATCHED THE ACFT ILLEGALLY. THEY THOUGHT THE WRITE-UP WAS FOR THE 'ALT HOLD' FUNCTION ONLY OF THE MCP. THE WRITE-UP INCLUDED 'STABILIZER OUT OF TRIM LIGHT.' CAPT HAD ASKED THE MECH IF IT WOULD AFFECT VNAV. HE WAS TOLD NO. PAPERWORK WAS ADJUSTED IN ZZZ FOR THE NEW WRITE-UP AND THE CORRECT COCKPIT STICKERS WERE PUT IN PLACE.

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.