FAA to strengthen oversight as Boeing set to resume 737 MAX production
Adds no immediate comment from Boeing, more details on Boeing production in paragraphs 4-10
By David Shepardson
WASHINGTON, Nov 7 (Reuters) -The Federal Aviation Administration said on Thursdayit will boost its oversight of Boeing BA.N as the planemakerprepares to resume production of its 737MAX jetsfollowing a 53-day strike that ended earlier this week.
FAA Administrator Mike Whitaker spoke with Boeing CEO Kelly Ortberg this week and stressed the importance of Boeing using its system for managing safety risks as it resumes production, the agency said.
The FAA noted that it maintained its enhanced on-site presence at Boeing factories throughout the strike "and will further strengthen and target our oversight as the company begins its return-to-work plan." Boeing has not said yet when it plans to resume production, but workers do not have to return until Nov. 12.
About 33,000 machinists who work on the best-selling 737 MAX, as well as the 767 and 777 wide-body jets, agreed to end a strike that began on Sept. 13.
Boeing did not immediately comment on the matter.
Reuters has previously reported that Boeing is expected to resume production of the 737 MAXat a very gradual rate.
Whitaker capped production at 38 737 MAX planes per month in January after a door panel missing four key bolts flew off an Alaska Airlines 737 MAX 9 in midair that month, exposing serious safety issues at Boeing.
The FAA said last month that it was opening a new safety review into Boeing BA.N. In October, the Transportation Department's Office of Inspector General criticized the FAA's oversight of Boeing.
An FAA audit of Boeing completed in February found 97 incidents of noncompliance, spanning "issues in Boeing'smanufacturing process control, parts handling and storage, and product control."
Whitaker said in September that safetyculture improvements at Boeing may take three to five years to accomplish and vowed torevamp the FAA's own safety management program. He said in June the agency had been"too hands-off" in its oversight of Boeing.
In September, a Senate panel investigating Boeing's culture faulted oversight by the FAA.
Reporting by David Shepardson; Editing by Paul Simao
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
