FAA ends MAX 9 partial grounding but bars Boeing from increasing output
The U.S. Federal Aviation Administration late on Wednesday tightened pressure on Boeing by barring the planemaker from expanding production of its 737 MAX narrowbody planes, following quality issues.
The FAA also agreed to allow the 737 MAX 9, which was grounded after an incident with an Alaska Airlines plane on Jan. 5, to fly again once inspections were completed.
The ability to resume flying was a relief to U.S. operators Alaska Airlines, United Airlines, Copa Airlines and Aeromexico which had been forced to cancel thousands of flights and aim to begin returning the planes to service on Friday and Sunday.
But the FAA decision to keep Boeing from expanding production will have wide-ranging effects across the industry.
Boeing is seeking to increase production of its single-aisle 737 MAX family to keep pace with demand and close a gap in the jet market with European planemaker Airbus.
→ Boeing delivers first 737 MAX to China from 2019
“We will not agree to any request from Boeing for an expansion in production or approve additional production lines for the 737 MAX until we are satisfied that the quality control issues uncovered during this process are resolved,” FAA Administrator Mike Whitaker said.
“The quality assurance issues we have seen are unacceptable.”
Clarifying the order, the FAA subsequently told Reuters: “That means Boeing can continue producing at the current monthly rate, but they cannot increase that rate.”
Boeing said it would continue to cooperate “fully and transparently” with the FAA and follow the agency’s direction as it took action to strengthen safety and quality.
The FAA offered no estimate of how long the limitation would last and did not specify the number of planes Boeing can produce each month.
In October, Boeing CEO Dave Calhoun said it planned to reach production of 38 MAX planes per month by the end of 2023.
Boeing’s latest 737 master schedule, which sets the production pace for suppliers, calls for production to rise to 42 jets per month in February, 47.2 in August, 52.5 by February 2025 and 57.7 in October 2025.
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