Barron’s Senior Writer Al Root joins Barron’s Roundtable to discuss the latest Boeing stock price and what to expect from the company in 2024.
The US Federal Aviation Administration (FAA) announced a production audit of the aircraft on Monday. Boeing 737 Max The manufacturing process and its supplier, Spirit AeroSystems, discovered multiple instances of companies allegedly failing to comply with manufacturing quality control requirements.
FAA investigators found Boeing’s “noncompliance issues.” manufacturing process controls, parts handling and storage, product management. ”
The agency said it provided a summary of those findings to the public as an update during its investigation into the companies’ production processes, but did not release the results of the completed audit because the investigation is ongoing.
The FAA gave Boeing 90 days to respond to the audit’s findings and outline a plan of action. Last week, FAA Administrator Mike Whitaker announced that after a daylong meeting with Boeing CEO Dave Calhoun and the aerospace giant’s safety team, Boeing was planning a comprehensive package to address “systemic quality control issues.” He said that it was necessary to formulate a comprehensive plan.
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The FAA report hits Boeing’s production quality control processes over various “noncompliance” issues. (Photographer: David Ryder/Bloomberg via Getty Images / Getty Images)
“Boeing needs to commit to real fundamental improvements,” Whitaker said after last week’s meeting. “Making fundamental change will require a sustained effort from Boeing’s leadership, and we are committed to holding every step of Boeing’s leadership accountable based on mutually understood milestones and expectations. I’m going.”
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| BA | boeing company | 200.58 | +0.56 | +0.28% |
| SPR | spirit aero system | 34.35 | +1.33 | +4.03% |
The audit follows an incident on January 5 in which the plug door panel of a new Boeing 737 Max 9 was blown off during an Alaska Airlines flight at an altitude of 16,000 feet, causing the cabin to depressurize and the plane to return safely. This was the trigger. portland international airport In Oregon.
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The plug door panel of the Alaska Airlines Boeing 737 Max 9 involved in the January 5 incident was missing. (Photo by PATRICK T. FALLON/AFP, Getty Images/Getty Images)
The door panel looked like this Four key bolts are missing.according to a National Transportation Safety Board (NTSB) preliminary report released last month.
The incident occurred after the FAA in December required airlines to: Inspecting the Boeing 737 Max airplane The airline repaired a loose bolt in the rudder control system after discovering a bolt with a missing nut during routine maintenance.
Boeing did not immediately respond to a request for comment.
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Boeing has been blocked from expanding production of the 737 Max until an investigation into quality control issues in the manufacturing process is resolved. (Photographer: David Ryder/Bloomberg via Getty Images / Getty Images)
Spirit AeroSystems said it was “in communication with Boeing and the FAA regarding appropriate corrective actions,” according to Reuters.
Spirit AeroSystems is a former Boeing subsidiary that manufactures the 737 Max airframe. The company confirmed last week that it was in talks with Boeing. Possible acquisition Boeing said there is uncertainty as to whether an agreement will be reached and completed.
Reuters contributed to this report.
