Boeing (NYSE: BA) has announced an increase in production of its 737 Max jets to 42 units per month, up from the previous 38. This decision follows thorough safety inspections of the company’s manufacturing process.
The Federal Aviation Administration (FAA) originally set the production limit after a door plug blew off a 737 Max jet operated by Alaska Airlines Group Inc. (NYSE: ALK) in January 2024.
### Boeing Follows Disciplined Safety Process
According to a Boeing spokesperson, the company adhered to a “disciplined process” guided by safety guidelines and performance goals established in cooperation with the FAA. “We appreciate the work by our team, our suppliers and the FAA to ensure we are prepared to increase production with safety and quality at the forefront,” Boeing said.
### Delivery Momentum Builds
Production had dipped below the 38-jet limit last year amid federal investigations and a machinists’ strike that shut down factories for nearly eight weeks. However, Boeing stated it reached the monthly cap again in the second quarter of 2024.
The Virginia-based global aerospace company delivered 121 737 jets in the third quarter, with September marking the highest number of 737 Max deliveries in a single month since 2018, according to Bank of America Securities (NYSE: BAC).
Separately, Boeing delivered its first 737 Max to Vietnamese airline VietJet Air, nine years after the original order was placed.
### FAA Oversight Continues
Despite the increased production rate, the FAA confirmed on Friday that its monitoring of Boeing’s manufacturing processes and efforts to strengthen its safety culture will remain unchanged. Inspectors have continued their work at Boeing’s facilities even during the federal government shutdown that began on October 1.
Last month, the FAA restored Boeing’s authority to perform final safety inspections on 737 Max jetliners — a significant milestone as the manufacturer had been barred from doing so for over six years following two fatal crashes that claimed 346 lives.
### Future Aircraft Development
Boeing CEO Kelly Ortberg emphasized the company’s commitment to safety during an April Senate committee hearing, stating, “We won’t ramp up production if the performance isn’t indicating a stable production system.”
Meanwhile, Boeing is in the early stages of developing a successor to the 737 Max. Earlier this year, Ortberg met with officials from Rolls-Royce Holdings PLC (OTC: RYCEF) to discuss new engine development for the next-generation aircraft.
### Safety Concerns and Fines
The Alaska Airlines incident was among several alleged safety violations between September 2023 and February 2024. These issues led the FAA to seek $3.1 million in fines from Boeing.
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https://www.benzinga.com/news/travel/25/10/48292971/boeing-gets-faa-green-light-to-boost-737-max-output-after-alaska-airlines-door-plug-blowout