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Buttigieg says Boeing must meet FAA quality plan before raising 737 MAX output
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Buttigieg says Boeing must meet FAA quality plan before raising 737 MAX output
Apr 24, 2024 9:42 AM

ARLINGTON, Virginia, April 24 (Reuters) - U.S.

Transportation Secretary Pete Buttigieg said on Wednesday that

Boeing ( BA ) must meet a government mandate to address systemic

quality-control issues within 90 days before it will be able to

boost 737 MAX production.

Buttigieg noted that Boeing ( BA ) is about halfway through that

90-day clock set by the Federal Aviation Administration (FAA).

"We're not to going let them (increase production) until

they have satisfied to the FAA that they can do it safely," he

said at an event at Reagan National Airport outside Washington.

The FAA in late January took the unprecedented step of

telling Boeing ( BA ) it would not allow the U.S. planemaker to expand

737 MAX production in the wake of a mid-air emergency on an

Alaska Airlines 737 MAX 9.

The Justice Department has opened a criminal probe into the

mid-air cabin panel blowout.

FAA Administrator Mike Whitaker told Reuters in March that

Boeing ( BA ) is allowed to produce 38 of the 737 planes per month, but

actual current production "is lower than that."

Reuters reported earlier this month that Boeing's ( BA ) monthly

output rate fell as low as single digits in late March.

Boeing ( BA ) CEO Dave Calhoun said on an earnings call on

Wednesday that the FAA wants a plan in 90 days "that, in

essence, monitors and measures whether our production system is

in control moving forward."

"90 days isn't like a wave a magic flag, and everything is

great, and you guys can go from 38 to 40," he added.

Whitaker said in March that the timeline for when Boeing ( BA )

will be allowed to boost the 737 MAX production rate will depend

on "how effectively they can implement these changes in the

safety culture and bring their quality levels up to where they

need to be."

Buttigieg separately acknowledged that U.S. airlines

including Southwest Airlines ( LUV ) were being impacted by the

fewer number of airplanes being delivered this year by Boeing ( BA ).

"This is a real issue," Buttigieg said, but emphasized that

the FAA is only thinking about safety and not economic

considerations in addressing the 737 MAX.

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