financetom
Business
financetom
/
Business
/
US regulator says Boeing safety improvements vital for profitability
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US regulator says Boeing safety improvements vital for profitability
Sep 25, 2024 1:23 PM

WASHINGTON, Sept 25 (Reuters) - The head of the Federal

Aviation Administration told a U.S. Senate panel on Wednesday

that Boeing ( BA ) must address a series of safety issues before

he will let them boost 737 MAX production, warning the issue

could impact company profits.

FAA Administrator Mike Whitaker capped production at 38 MAX

planes per month in January after a door panel missing four key

bolts flew off an Alaska Airlines 737 MAX 9 midair in January.

"They cannot grow to where they need to grow without"

making broad safety improvements in six key categories, Whitaker

said at a Senate Permanent Subcommittee on Investigation hearing

on FAA's oversight of Boeing ( BA ). "They don't do that, they don't

grow, and if they don't grow, they're not going be able to

achieve profitability."

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

Senator Richard Blumenthal, chair of the committee, noted

that Boeing ( BA ) previously produced 52 planes per month in 2018 but

production has slid below 38. He asked if lowering the cap would

make it more effective.

"Boeing ( BA ) is quite aware that they're not going to

increase production on any of these aircraft" until they show

they are meeting six key metrics, Whitaker said.

Reuters reported Sept. 10 that Boeing ( BA ) told suppliers it was

delaying a key production milestone for its 737 MAX by six

months, three industry sources said, a sign the planemaker was

struggling to boost production of its best-selling jet.

Boeing's ( BA ) latest 737 supplier master schedule

communicated to the industry calls for MAX output to reach 42 a

month in March 2025, compared with its previous target of this

month.

Boeing ( BA ) has not changed its official plane production

target, which calls for 38 MAX jets a month by the end of 2024,

up from roughly 25 jets a month in July.

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 >
Rentokil expects hit to 2025 profit on delay in Terminix deal synergy
Rentokil expects hit to 2025 profit on delay in Terminix deal synergy
Oct 17, 2024
Oct 17 (Reuters) - British pest control company Rentokil Initial ( RTO ) said on Thursday its profit and margins in 2025 will be hurt by a delay of about two to three months in realizing synergies from its acquisition U.S. rival Terminix. (Reporting by Yamini Kalia in Bengaluru; Editing by Subhranshu Sahu) ...
Merck lowers mid-term healthcare outlook after recent drug failures
Merck lowers mid-term healthcare outlook after recent drug failures
Oct 17, 2024
Oct 17 (Reuters) - German science and technology company Merck ( MRK ) lowered mid-term targets for its Life Sciences and Healthcare businesses, anticipating an update on China's growth prospects and following a string of setbacks in its drug development. The company narrowed expectations for its Life Science business, aiming for a 7-9% range from a previously anticipated 7-10%, it...
Carlyle-backed Rigaku raises $863 mln in Tokyo IPO
Carlyle-backed Rigaku raises $863 mln in Tokyo IPO
Oct 17, 2024
TOKYO, Oct 17 (Reuters) - Rigaku Holdings raised 129 billion yen ($863 million) after the Japan X-ray testing tool maker priced its IPO at the top of its range, according to a regulatory filing on Thursday. The company, which is backed by buyout firm Carlyle Group ( CG ), priced the IPO at 1,260 yen per share, at the top...
Hyundai Motor India set to price shares at top of range to raise $3.3 billion, sources say
Hyundai Motor India set to price shares at top of range to raise $3.3 billion, sources say
Oct 17, 2024
(Reuters) -Hyundai Motor India is set to price its shares at 1,960 rupees to raise $3.3 billion in its initial public offering, according to two sources with direct knowledge of the matter. That price is at the top of the 1,865 rupees to 1,960 rupees range flagged to investors when the deal was launched. Hyundai India is selling 142.2 million...
Copyright 2023-2026 - www.financetom.com All Rights Reserved