Long Road Ahead for Rectification! FAA Chief: Boeing (BA.US) Needs More Actions to Lift Regulatory Restrictions

The head of the U.S. Federal Aviation Administration (FAA) stated on Monday that Boeing (BA.US) still needs to implement further measures before it can regain the authority for aircraft airworthiness certification and other related privileges that were revoked from the aerospace giant due to a series of production lapses. FAA Administrator Bryan Bedford, speaking at an industry conference ahead of Asia's largest airshow in Singapore, noted, "Boeing still has more work to do, and we are working with the company to help it achieve its rectification goals," while also acknowledging that Boeing has currently made "significant progress." Although Boeing has regained some of its authority in recent months, these remarks underscore that the company continues to face intense scrutiny from U.S. regulators, years after an incident that nearly ended in catastrophe exposed shoddy factory workmanship at its plants. It is understood that in January 2024, a door plug blew out on an Alaska Airlines (ALK.US) Boeing 737 MAX 9 aircraft shortly after takeoff; while it did not result in fatal casualties, the event revealed systemic production issues at Boeing, including missing bolts in the assembly process, insufficient employee training, and excessive pressure to meet deadlines. Bedford pointed out that his ultimate goal is to return the full responsibility for final aircraft safety checks to Boeing, with FAA personnel being deployed to work within the core processes at Boeing's production sites. To manage its limited regulatory resources, the FAA typically delegates certain oversight tasks to aircraft manufacturers through the "Organization Designation Authorization" program, under which companies can perform some supervisory functions that would otherwise be carried out by the regulator. Thanks to the effectiveness of its rectification efforts, Boeing has increased the monthly production rate of its key profit-generating model, the 737 MAX, from a previous cap of 38 aircraft to 42, marking a critical milestone in its production recovery.