2024-01-12 08:36:40 ET
The U.S. Federal Aviation Administration (FAA) on Friday said it was taking new steps to increase oversight of Boeing ( NYSE: BA ) production and manufacturing, a day after formally opening a probe into the top planemaker over a blown door plug on a 737 Max 9 aircraft.
Last Friday, an Alaska Airlines ( ALK ) flight was forced to make an emergency landing after a panel blew out of the side of the plane, leaving a gaping hole and causing rapid depressurization in the cabin.
Boeing ( BA ) stock has plunged 10.6% so far this week. Spirit AeroSystems ( SPR ), BA's top parts supplier and the maker and installer of the door plugs under investigation, has seen its shares retreat about 13% .
The actions announced by the FAA on Friday include conducting an audit involving the Boeing ( BA ) 737 Max 9 production line and its suppliers to evaluate "Boeing’s ( BA ) compliance with its approved quality procedures."
The results of the audit analysis will determine whether more audits will be necessary.
The FAA will also increase monitoring of Boeing ( BA ) 737 Max 9 in-service events and will assess the safety risks around delegated authority and quality oversight. It will also see whether those functions can be moved under independent, third-party entities.
"It is time to re-examine the delegation of authority and assess any associated safety risks," FAA Administrator Mike Whitaker said in a statement .
"The grounding of the 737-9 and the multiple production-related issues identified in recent years require us to look at every option to reduce risk. The FAA is exploring the use of an independent third party to oversee Boeing’s ( BA ) inspections and its quality system," Whitaker added.
Boeing ( BA ) did not immediately respond to a request for comment from Seeking Alpha.
Shares of the planemaker were last down 1.4% to $219.50 in pre-market trading.
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U.S. aviation regulator to increase oversight of Boeing production and manufacturing