Narrative:

I was in the jumpseat performing an observation in lieu of the FAA on a captain upgrade applicant (captain) flying with a first officer. While holding short for runway 1 behind and to the left of an rj; tower gave us a line up and wait clearance. High task loading (taxiing clear of the rj and performing a rushed before takeoff checklist with traffic on final as told by the tower) caused the captain to select VNAV instead of LNAV as we were crossing the hold short line. After landing gear retraction the captain realized he didn't have LNAV and called for LNAV to be engaged.at 400 feet; LNAV was selected and VNAV was deselected. With no vertical mode in the FMA; the decision was made to reselect to/GA at approximately 500 feet. This caused the FD to command wings level; and the lateral mode in the FMA to blank. I intervened and called out 'no LNAV'; and the first officer directed the captain to turn left to rejoin the course. Shortly thereafter we were told by departure that we had a possible pilot deviation and were given a phone number to call when we landed. The rest of the flight was uneventful.

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Original NASA ASRS Text

Title: B737 flight crew reported an airspace violation due to improper operation of the Navigation and Autothrottle systems.

Narrative: I was in the jumpseat performing an Observation in Lieu of the FAA on a Captain upgrade applicant (Captain) flying with a First Officer. While holding short for Runway 1 behind and to the left of an RJ; Tower gave us a line up and wait clearance. High task loading (taxiing clear of the RJ and performing a rushed Before Takeoff Checklist with traffic on final as told by the Tower) caused the Captain to select VNAV instead of LNAV as we were crossing the hold short line. After landing gear retraction the Captain realized he didn't have LNAV and called for LNAV to be engaged.At 400 feet; LNAV was selected and VNAV was deselected. With no vertical mode in the FMA; the decision was made to reselect TO/GA at approximately 500 feet. This caused the FD to command wings level; and the lateral mode in the FMA to blank. I intervened and called out 'NO LNAV'; and the First Officer directed the Captain to turn left to rejoin the course. Shortly thereafter we were told by Departure that we had a possible Pilot Deviation and were given a phone number to call when we landed. The rest of the flight was uneventful.

Data retrieved from NASA's ASRS site 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.