Boeing's 737 MAX Production Update

By David Shepardson

CHICAGO (Reuters) – The head of the Federal Aviation Administration (FAA) announced that Boeing (NYSE:BA) has not yet resumed production of 737 MAX airplanes following a machinists' strike but plans to begin later this month.

FAA Administrator Mike Whitaker met with Boeing CEO Kelly Ortberg and toured Boeing's 737 plant in Renton, Washington, boosting oversight following the strike, which ended on Nov. 4.

Whitaker stated Boeing's plan is to gradually restart production later this month and he intends to hold another meeting in January as the company ramps up production.

> "The thing that I was most struck by was we're four weeks post-strike and they're still not producing airplanes, because they're focused on their workforce, training, and ensuring a sorted supply chain," Whitaker told Reuters in an interview.

Boeing, whose shares closed down 1%, did not comment on the situation. The 737 is Boeing's top-selling airliner, making the production restart critical for the company's financial future.

Whitaker capped production at 38 737 MAX planes per month in January after an incident where a door panel missing four key bolts flew off an Alaska Airlines 737 MAX 9 during flight, revealing serious safety concerns.

He did not specify when he thought the FAA would restore Boeing's capability to produce over 38 planes per month but expressed surprise if it happened sooner than several months.

> "We really get great visibility on that journey up from 0 to 38 to see how they're doing," Whitaker added.

Whitaker expects to receive a proposed 737 MAX engine de-icing fix soon, which has been delaying the certification of the MAX 7. He stated, "We have done everything we can on our side awaiting that solution on the de-icing."

He pointed out it could take five years for Boeing to reform its safety culture, mentioning improvements like a new parts management system and enhanced training.

> "What I saw this week was really what I expected to see," he added.

Whitaker insists Boeing adopt an effective Safety Management System (SMS) to identify and address operational hazards proactively.

> "We haven't seen evidence of it working the way it's supposed to work, where your risk assessment is driving your behavior," he said.

The National Transportation Safety Board noted that Boeing's SMS failed to identify issues earlier.

A critical measure for Boeing was to halt delivery of fuselages from Spirit AeroSystems (NYSE:SPR) with unfinished work. Whitaker mentioned that the FAA focuses on ensuring proper inspection points.

In a separate interview, Transportation Secretary Pete Buttigieg expressed optimism about Boeing's compliance with requirements.

Whitaker, confirmed for a five-year term in October 2023, noted preliminary talks with the Trump transition team but anticipated it was too early to know if he would remain in his position.