Tuesday, September 17, 2024

Regulators push Boeing on plan for ‘systemic change’

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Boeing will continue to face increased government inspections and limits on production, as regulators say “systemic change” is needed to rebuild confidence in the safety of its planes.

The aerospace giant presented regulators with a sweeping plan on Thursday aimed at improving the quality of its aircraft.

After the meeting, the head of the Federal Aviation Administration (FAA) said the agency would continue to meet weekly with senior executives to monitor its implementation.

“That’s really the hard part,” FAA administrator Mike Whitaker said, adding that he could not give a time frame for when the current production cap might be lifted.

“I don’t think it will happen in the next few months,” he said.

Boeing chief executive Dave Calhoun said many elements in the plan were already underway and the company was “committed” to the plan’s execution.

“We thank Administrator Whitaker and the FAA team for their feedback today and we will continue to work under their oversight as we move forward,” he said.

Boeing has been in the spotlight since an unused door fell off a brand new 737 Max plane during a flight in January, leaving a gaping hole on the side of the plane.

But concerns about Boeing’s attitudes toward safety and quality control conditions in its factories are not new.

The company previously faced intense criticism five years ago, after two 737 Max aircraft were lost in separate, but almost identical accidents, killing 346 people.

January’s incident, which investigators said was due to missing bolts, raised new doubts about its corporate culture and manufacturing approach.

Boeing is now facing numerous lawsuits, as well as the threat of criminal prosecution for violating the terms of a settlement reached after the 2018 and 2019 accidents.

The FAA, which had stepped up its oversight in the wake of the accident, had imposed a production cap on the company and set a 90-day deadline for Boeing to develop a comprehensive plan to address regulators’ concerns.

Those steps were presented during a three hour meeting on Thursday.

The plan builds on some actions Boeing had already announced, such as significantly slowing its manufacturing pace and boosting staff training.

The company said it was also re-introducing daily compliance checks, investing in new tools and equipment, simplifying its procedures, and pushing managers to spend more time on the factory floor.

Mr Whitaker said the FAA would maintain its aggressive oversight of the company to ensure the goals are met.

“Systemic change isn’t easy but in this case is absolutely necessary,” he said.

“This does not mark the end of our increased oversight of Boeing and its suppliers, but it sets a new standard of how Boeing does business,” he added.

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