By David Shepardson
WASHINGTON (Reuters) – Federal Aviation Administration’s (FAA) stringent oversight of Boeing will persist indefinitely, according to the agency’s outgoing head. Nearly a year after a door panel missing four essential bolts detached from a new Alaska Airlines 737 MAX 9 mid-flight on January 5, 2024, the incident prompted FAA Administrator Mike Whitaker to restrict production to 38 737 MAX planes per month and temporarily ground 170 aircraft. The mishap revealed significant safety concerns at the U.S. aircraft manufacturer and played a role in the departure of then-CEO Dave Calhoun.
“We have carried out an unprecedented number of surprise audits, and we hold monthly status meetings with Boeing executives to track progress. Our heightened oversight is not a temporary measure,” Whitaker stated ahead of the incident’s anniversary.
In February, Whitaker directed Boeing to implement a safety and quality enhancement plan and had previously acknowledged that previous oversight had been “too hands-off.”
“This is not a short-term endeavor. A fundamental cultural transformation at Boeing focused on safety and quality over profits is imperative,” Whitaker stated. “Achieving this will demand persistent dedication and commitment from Boeing, along with unwavering scrutiny from our end.”
Boeing provided an update on its safety and quality initiatives on Friday, mentioning the implementation of new random quality audits and the substantial reduction of defects in 737 fuselage assembly at supplier Spirit AeroSystems by augmenting inspection points and introducing a customer quality approval process.
Whitaker announced his intention to step down early from his five-year term on January 20 when President-elect Donald Trump assumes office. Trump’s Transportation Department nominee, Sean Duffy, emphasized the importance of ensuring “safe planes emanating from Boeing.”
The FAA disclosed a fresh audit of Boeing in October. Last month, Whitaker held discussions with the new Boeing CEO Kelly Ortberg and plans to meet again this month. He commended Boeing for halting 737 production for a month following a machinists strike.
In July, Boeing consented to plead guilty to fraud in the aftermath of two fatal 737 MAX crashes in 2018 and 2019, agreeing to pay a fine of up to $487.2 million and invest $455 million in enhancing safety and compliance practices over three years of court-monitored probation as part of the agreement. However, a judge rejected the deal last month, citing an issue with a diversity and inclusion provision.
Boeing shares declined approximately 32% last year as the company navigated through consecutive crises, marking the most dismal performance among firms in the Dow Jones Index.
(Reporting by David Shepardson; Editing by Jamie Freed)
