financetom
Business
financetom
/
Business
/
US FAA extends program allowing Boeing to conduct agency tasks like inspections
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US FAA extends program allowing Boeing to conduct agency tasks like inspections
May 29, 2025 10:31 AM

*

Long-time program allows Boeing ( BA ) to conduct tasks on FAA

behalf

*

Critics have said the FAA did not ensure adequate

oversight

*

Agency says it will closely monitor Boeing ( BA ) actions

By David Shepardson

WASHINGTON, May 29 (Reuters) - The U.S. Federal Aviation

Administration on Thursday said it would extend by three years a

program that allows Boeing ( BA ) to perform some tasks on the agency's

behalf like inspections, saying the planemaker had made

improvements.

In May 2022, the agency agreed to renew Boeing's ( BA )

Organization Designation Authorization -- known as ODA --

program for three years rather than the five Boeing ( BA ) had asked

for to ensure the planemaker implemented "required

improvements."

Before making the decision to again extend the ODA program,

FAA said it had "closely monitored specific criteria and saw

improvements in most areas," adding that it "will continue to

closely monitor Boeing's ( BA ) performance throughout its renewal

period."

The program allows an independent unit within Boeing ( BA ) to

perform FAA-delegated tasks like inspections and approving

repairs.

A report last year said there were more than 1,000 workers

who performed tasks on behalf of the FAA in engineering,

manufacturing and administrative functions.

Boeing ( BA ) did not immediately respond to a request for comment.

Last month, Democratic U.S. Senator Maria Cantwell of

Washington told Reuters the FAA should address critical concerns

before deciding whether to extend the program.

Boeing's ( BA ) quality and safety efforts have faced harsh

criticism since a January 2024 mid-air emergency involving a new

Alaska Airlines 737 MAX 9 that was missing four key

bolts.

Then-FAA Administrator Mike Whitaker in February 2024

ordered Boeing ( BA ) to implement a safety and quality improvement

plan and acknowledged that prior oversight "was too hands off."

Transportation Secretary Sean Duffy said in March that Boeing ( BA )

needs strict oversight.

After the 2024 incident, the FAA took the unprecedented step

of imposing a production cap of 38 planes per month on the 737

MAX, which remains in place.

The FAA in 2022 set one requirement before allowing a new

program extension, that ODA employees can "act without

interference by company officials."

Congress passed sweeping reforms in December 2020 on how the

FAA certifies new airplanes after two fatal 737 MAX crashes

killed 346 people and led to the plane's 20-month grounding.

The FAA continues to inspect all Boeing 737 MAXs and 787

Dreamliners before issuing airworthiness certificates for

individual planes, rather than delegating those tasks to Boeing ( BA ).

The Office of Inspector General said FAA officials in 2023

sought to allow Boeing's ( BA ) ODA to resume issuing final

airworthiness certificates for 737 and 787s. Before FAA senior

officials could approve the request, the Alaska mid-air

emergency occurred.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Copyright 2023-2026 - www.financetom.com All Rights Reserved