The FAA will continue its enhanced oversight of Boeing and restrict 737 Max production
Boeing $BA has submitted a plan to the Federal Aviation Administration explaining how it plans to fix its safety and quality control issues in the wake of a piece of fuselage falling off one of its 737 Max 9 planes. The FAA said Thursday that it will continue its enhanced oversight of the company and restrict the planes’ production.
“In the immediate aftermath of January 5, the FAA took unprecedented steps to increase oversight on Boeing,” FAA head Mike Whitaker said in a statement. “Over the last 90 days, that has meant everything from more safety inspectors in the facilities to halting production expansion. Today, we reviewed Boeing’s roadmap to set a new standard of safety and underscored that they must follow through on corrective actions and effectively transform their safety culture. On the FAA’s part, we will make sure they do and that their fixes are effective. This does not mark the end of our increased oversight of Boeing and its suppliers, but it sets a new standard of how Boeing does business.”
The FAA said its meeting with Boeing to go over the plan lasted three hours. In the preceding incident, a door plug blew out on an Alaska Airlines-operated 737 Max plane. In the wake of the blowout, CEO Dave Calhoun announced that he would be resigning at the end of the year. The company’s stock price is down more than 31% for the year. Shares were flat in Thursday trading.
The big question coming into the meeting was whether Boeing would be allowed to increase production of the 737 Max planes, which is one of its key moneymakers. During a press conference afterwards, Whitaker shot down those hopes.
“I don’t think it will happen in the next few months,” he said.
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