The Federal Aviation Administration is preparing to ease certain production and certification restrictions on Boeing’s 737 MAX program, according to Friday’s Wall Street Journal. An announcement from the FAA is expected soon, signaling a cautious restoration of confidence in the manufacturer’s safety and quality controls after years of heightened oversight.
According to internal planning documents seen by the newspaper, the changes will be phased and limited. Boeing’s monthly production cap of 38 aircraft remains in place for now, though the FAA is expected to authorize an increase to 42 planes per month in the near term. The adjustment would mark the first production expansion since a January 2024 mid-air panel blowout on an Alaska Airlines 737 MAX 9 triggered new safety concerns.
Beginning next week, Boeing will regain authority to perform final safety inspections on select 737 MAX jets at its Washington state factories. For the first time since 2019, the company will be allowed to issue airworthiness certificates independently on certain aircraft. The FAA and Boeing will alternate performing these final checks on a weekly basis, with the program gradually expanding to cover more planes
The easing will also extend to the 787 Dreamliner program, where Boeing lost similar certification authority in 2022 following a series of quality-control lapses.
The FAA’s oversight measures stem from multiple crises in recent years, including two fatal MAX crashes in 2019 in Indonesia and Ethiopia, killing 3446 people and leading to global grounding of the 737 MAX fleet. At the time, the FAA revoked Boeing’s ability to handle final certification approvals at that time.
Then, in 2024 came the “door plug incident,” in which a fuselage panel detached mid-flight from an Alaska Airlines 737 MAX 9, prompting the FAA to impose a strict cap on monthly production, as well as increase audits at Boeing and supplier-contractor Spirit AeroSystems. A Justice Department criminal investigation ensued into Boeing’s compliance with a 2021 deferred prosecution agreement.
Earlier this month, the FAA proposed a $3.1 million fine against Boeing for hundreds of quality violations at its Renton, Washington production sites.
FAA Administrator Mike Whitaker’s recent visits to Boeing’s factories highlighted improvements in the company’s safety management systems, including expanded training programs and new technology investments implemented after a four-week labor strike earlier this year.
Boeing 737’s are the aircraft found widely in the Alaska Airlines fleet.
Might be a good time to consider buying the stock … BA.