On Wednesday, the head of the Federal Aviation Administration announced that Boeing must formulate a comprehensive plan to address “systemic quality-control issues” within the next 90 days. This directive comes in the aftermath of a mid-air emergency last month, which has heightened new safety concerns. The FAA is closely monitoring and enforcing measures to enhance the overall safety of Boeing’s operations.
After an all-day meeting with CEO Dave Calhoun on Tuesday, the FAA’s head issued a critical statement against the planemaker and demanded the plan.
“Boeing must commit to real and profound improvements,” said FAA Administrator Mike Whitaker. “Making foundational change will require a sustained effort from Boeing’s leadership, and we are going to hold them accountable every step of the way, with mutually understood milestones and expectations.”
In a statement, Calhoun expressed Boeing’s leadership team’s total commitment to addressing FAA concerns and developing the required plan. He emphasized their dedication to resolving the issues raised by the FAA.
“We have a clear picture of what needs to be done,” Calhoun explained. “Boeing will develop the comprehensive action plan with measurable criteria that demonstrates the profound change that Administrator Whitaker and the FAA demand.”
Boeing is urgently addressing and enhancing safety procedures following an incident on January 5, where a door panel detached during a flight of a new Alaska Airlines 737 MAX 9. This occurrence compelled pilots to make an emergency landing, leaving passengers exposed to a gaping hole at 16,000 feet above the ground. The company is now actively working to explain and reinforce safety measures in the aftermath of this event.
Bloomberg News reports that the Justice Department is investigating the Alaska Airlines MAX 9 blowout. The inquiry aims to determine whether it falls within the scope of a 2021 deferred prosecution agreement related to two fatal 737 MAX 8 crashes in 2018 and 2019 that claimed 346 lives.
The report, citing an unidentified source, states that if prosecutors determine the MAX 9 blowout violated the agreement, Boeing may face criminal charges.
Last month, Boeing announced that the DOJ was actively reviewing whether the company fulfilled its obligations under the agreement. The Justice Department declined to comment on Wednesday.
Boeing shares dropped 1% in after-hours trading.
PRODUCTION CAP
After the Jan. 5 incident, the FAA capped Boeing’s production rate. Lawmakers and customers closely monitored its operations. The new FAA statement raises new questions about how long the production rate freeze will last.
Whitaker stated that Boeing’s plan must consider the upcoming FAA production-line audit results. Additionally, it should take into account the findings of an expert review panel report issued on Monday.
That report, commissioned in early 2023, was highly critical of Boeing’s safety management processes, claiming “inadequate and confusing implementation of the components of a positive safety culture.”
Ed Clark, the head of Boeing’s troubled 737 MAX program, was abruptly removed last week as part of a management shakeup.
On Wednesday, the FAA declared that Boeing must enhance its Safety Management System (SMS) program, a commitment made in 2019. The agency directed Boeing to integrate this program with a Quality Management System to “create a measurable, systemic shift in manufacturing quality control.”
On February 12, Whitaker paid a visit to Boeing’s Renton, Washington, factory, which produces the 737 MAX line. He expressed concerns about some of what he saw during the tour, according to two people familiar with the situation.
Sources report that FAA meetings with Calhoun lasted over seven hours. Much of the time was dedicated to discussing various quality issues at the aircraft manufacturer.
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