Boeing faces challenges: Strict FAA oversight delays production increase of the 737 Max

Quality control at Boeing must meet strict requirements before the U.S. Federal Aviation Administration (FAA) is convinced that the aircraft manufacturer can support higher production rates of its 737 Max jets and lift the current production restrictions. "We have made it very clear that these metrics have to be in the green before production can be increased beyond a certain level," emphasized Mike Whitaker, the Administrator of the Federal Aviation Administration (FAA), in an interview. This will be the focus of the coming months to provide clarity. The FAA has limited the production of Boeing's 737 Max to 38 aircraft per month after a near-catastrophe in January, when a door panel came loose during a flight. This incident highlighted production deficiencies and forced Boeing to slow down production. In response to the crisis, Boeing has developed an action plan that gives the FAA insight into key performance metrics. These are monitored in real-time through traffic lights and provide information about the workflow in the Renton factory and the entire supply chain. Boeing continues to struggle with production errors and part shortages resulting from the Covid pandemic while training its predominantly new workforce. The aircraft manufacturer is eager to ramp up production again, as the 737 Max is a crucial revenue source. In August, the company delivered 32 of these aircraft, bringing the total number of deliveries this year to 201 units – a decline from 271 during the same period last year. The FAA has additionally intensified its oversight of Boeing, with more inspectors in the factories and regular meetings, as the company implements a comprehensive plan to address the production issues. Whitaker did not comment on when Boeing might be relieved of the production restrictions. As part of Boeing's restructuring, Kelly Ortberg has been appointed as the new CEO, replacing Dave Calhoun. Whitaker plans to speak with Ortberg personally at least once a quarter and as needed by phone. Whitaker stated that the two have already spoken a few times and that Ortberg is aware of the expectations. "We will continue to maintain an intense level of engagement," he added.