Summary

  • The FAA remains strict on Boeing 737 MAX production, waiting for quality improvements to be executed before allowing it to increase.
  • Boeing’s quality improvement plan presented to the FAA includes investing in workforce training, simplifying processes, and enhancing the safety culture.
  • Boeing faces challenges due to the reduction in 737 MAX production and expects to burn cash this year.

Boeing has presented its quality improvement plan to the Federal Aviation Administration (FAA), but that’s only half the job done. The regulatory authority will continue to oversee Boeing’s production practices to ensure it executes the improvement strategies before it can be allowed to scale up 737 MAX production.

Cap remains on 737 MAX production

The FAA has received Boeing’s quality improvement plan, but that has not translated into any leniency from the government agency, as it wants to ensure that Boeing executes the plan properly. The production of Boeing’s 737 MAX aircraft continues to be reduced, and it will likely take a few more months before it can be increased again.

Boeing 737 MAX 9 arriving in the manufacturer's livery to the Paris Air Show shutterstock_1985907758

Photo: VanderWolf Images | Shutterstock

In February, Boeing was given 90 days to come up with a plan to solve its production and quality woes. On May 30, Boeing CEO Dave Calhoun and other top company executives presented the plan to FAA Administrator Mike Whitaker and other agency officials.

But Whitaker said that they haven’t fixed a timeline on when Boeing could be allowed to ramp up MAX production, adding that it’s unlikely to be done in the next few months. CNBC quotes him as saying,

“We will not approve production increases beyond the current cap until we’re satisfied … Boeing has laid out their roadmap, and now they need to execute.”

Boeing’s plan

Among the things mentioned in Boeing’s report, it has highlighted the steps taken by the company to invest in its workforce, particularly after many of its senior workers opted for exit packages during the COVID-19 pandemic.

Renton, Washington USA - Jan 30th, 2023: A recently-built Boeing 737 MAX sits outside the Boeing factory ahead of painting and delivery

Photo: Coby Wayne | Shutterstock

Other steps taken to improve production practices include adding 300 hours of training material as well as the introduction of workplace coaches. The company is also trying to declutter the schedules of managers so they can spend more time in the factories. In a message to employees, Stephanie Pope, chief executive of Boeing’s commercial airplane unit, said that the plan includes actions that fit within four categories:

  • Invest in workforce training
  • Simplify plans and processes
  • Eliminate defects
  • Elevate safety and quality culture

“We are confident in the plan that we have put forward and are committed to continuously improving. We will work under the FAA’s oversight and uphold our responsibility to the flying public to continue delivering safe, high-quality airplanes. – Stephanie Pope”

Renton, Washington / USA - September 09 2018: Multiple engineless Boeing 737 MAX outside the assembly line parked at Renton Airport waiting for flight tests, painting and delivery.

Photo: Thiago B Trevisan | Shutterstock

The FAA will continue to monitor Boeing’s progress to see if the plan is being implemented, and its senior leaders will meet with Boeing’s team every week to review the company’s performance.

Tough year for Boeing

Boeing’s start to 2024 was not a pleasant one, with the Alaska Airlines 737 MAX blowout incident bringing the focus back on its production flaws followed by intense regulatory, media, and public scrutiny.

Alaska Airlines Boeing 737 MAX 9 departing Boston Logan International Airport BOS shutterstock_2153691365

Photo: The Global Guy | Shutterstock

Boeing was ordered to reduce the production of the Boeing 737 MAX plane earlier this year until the FAA is satisfied that it can build planes safely. Many airlines have had to change their fleet and network plans because their 737 MAX delivery schedules have been affected. Many, such as United Airlines, are also looking at Boeing’s rival Airbus for alternatives to meet business requirements.

Related

United Airlines Is Close To Signing Lease Agreements For Airbus A321neos

The airline is reportedly looking to acquire these planes to compensate for no longer taking the Boeing 737 MAX 10.

All of this has affected Boeing’s reputation and even finances, and the company estimates that it will lose cash this year. While the road to recovery seems long, hopefully Boeing will eventually make the much-needed comeback.

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  • 787-8 Dreamliner

    Boeing

    Stock Code:
    BA

    Date Founded:
    1916-07-15

    CEO:
    Dave Calhoun

    Headquarters Location:
    Chicago, USA

    Key Product Lines:
    Boeing 737, Boeing 747, Boeing 757, Boeing 767, Boeing 777, Boeing 787

    Business Type:
    Planemaker

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