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.