🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

FAA to maintain increased in-person oversight of Boeing for 'foreseeable future'

Published 06/12/2024, 03:47 PM
Updated 06/12/2024, 05:20 PM
© Reuters. FILE PHOTO: A Boeing logo is seen at the 54th International Paris Airshow at Le Bourget Airport near Paris, France, June 18, 2023. REUTERS/Benoit Tessier/File Photo
BA
-
SPR
-

By David Shepardson

WASHINGTON (Reuters) -The head of the Federal Aviation Administration will tell the U.S. Senate Commerce Committee on Thursday that the agency will maintain its increased on-site presence at Boeing (NYSE:BA) and its supplier Spirit AeroSystems (NYSE:SPR) "for the foreseeable future."

FAA Administrator Mike Whitaker will tell senators the agency's decision to boost inspections after the Jan. 5 Alaska Airlines Boeing 737 MAX 9 in-flight emergency is now permanent, according to a copy of his written testimony seen by Reuters. Whitaker will say the FAA has added "additional inspections at critical points of the production process."

Whitaker will also say that, following lessons from the Jan. 5 incident, "the FAA changed its oversight approach and those changes are permanent. We have now supplemented our audits with more active, in-person oversight — the 'audit plus inspection' approach."

Boeing did not immediately comment.

On May 30, Boeing delivered a comprehensive quality improvement plan delivered to the FAA after Whitaker in late February gave Boeing 90 days to develop a comprehensive plan to address "systemic quality-control issues."

Whitaker said in his testimony "there must be a shift in the company’s safety culture in order to holistically address its systemic quality assurance and production issues."

He added the FAA wants "to make sure Boeing implements the necessary changes and has the right tools in place to sustain those changes in the long term."

Whitaker said Boeing committed to boosting employee training, encouraging employees to speak up without fear of reprisal, boosting supplier oversight and "increasing quality oversight at every step of the production process."

Whitaker said FAA "aviation safety inspectors will also monitor each of Boeing’s sub-teams tasked with implementing the key focus areas of the plan."

© Reuters. FILE PHOTO: A Boeing logo is seen at the 54th International Paris Airshow at Le Bourget Airport near Paris, France, June 18, 2023. REUTERS/Benoit Tessier/File Photo

Whitaker in February barred Boeing from boosting production of its best-selling plane after a door panel blew out during the Jan. 5 flight. He said last month he did not expect Boeing to win approval to increase production of the MAX "in the next few months."

Whitaker also said Boeing had agreed to bring "state-of-the-art technology to Boeing tool and parts management."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.