UAL - FAA Halts Boeing's 737 Max Production Expansion Amid Quality Control Issues: 'Won't Be Back To Business As Usual' | Benzinga
The Federal Aviation Administration (FAA) has put a stop to Boeing Co‘s (NYSE:BA) planned expansion of its 737 Max aircraft production. This decision comes in the wake of the recent incident involving a Max 9 aircraft, which has now been cleared for service.
What Happened: The FAA announced on Wednesday that it would not approve any requests from Boeing for an expansion in production or additional production lines for the 737 MAX until the quality control issues are resolved, CNBC reported. This decision follows an incident where a door plug blew out during an Alaska Air Group Inc (NYSE:ALK) flight, prompting the grounding of the Max 9 planes.
FAA Administrator Mike Whitaker stated, “Let me be clear: This won't be back to business as usual for Boeing.”
"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."
The FAA has also approved inspection instructions for the Max 9 aircraft, a crucial step for airlines to review their fleets and return the planes to service.
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