Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

FAA audit finds dozens of issues in Boeing 737 MAX production, NYT reports

Published 03/11/2024, 11:32 PM
Updated 03/12/2024, 06:41 AM
© Reuters. FILE PHOTO: The fuselage plug area of Alaska Airlines Flight 1282 Boeing 737-9 MAX, which was forced to make an emergency landing with a gap in the fuselage, is seen during its investigation by the National Transportation Safety Board (NTSB) in Portland,

(Reuters) -The Federal Aviation Administration's (FAA) audit of Boeing (NYSE:BA)'s 737 MAX production process after a panel blew off on an Alaska Airlines jet in January failed 33 of 89 tests, the New York Times reported on Monday.

In the wide-ranging investigation, Boeing failed a check which dealt with the component that blew off the jet, known as a door plug, the report said, citing an FAA presentation viewed by NYT.

Boeing's shares were down 1.4% in premarket trading on Tuesday.

Supplier Spirit AeroSystems (NYSE:SPR), which makes the fuselage for the MAX, passed six of 13 audits and failed the rest, the report added.

Additionally, an audit at Spirit focusing on the door plug component found five problems and it failed the one which dealt with the installation of the component, the report said.

The audit raised concerns about the technicians who carried out the work and found that the company "failed to determine the knowledge necessary for the operation of its processes," according to the report.

Other audits that Spirit failed included one that involved a cargo door and another that dealt with the installation of cockpit windows, it said.

Based on the FAA audit, Boeing is continuing to implement immediate changes, and is developing a plan to strengthen safety and quality, the plane maker told Reuters in an emailed statement.

The FAA and Spirit AeroSystems did not immediately reply to Reuters' requests for comment.

Earlier in the day, U.S. Transportation Secretary Pete Buttigieg said he expects Boeing to cooperate in investigations by the Justice Department and National Transportation Safety Board into the 737 MAX 9 mid-air emergency on Jan. 5.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Meanwhile, the FAA's Michael Whitaker said the agency and Boeing hope to define the milestones the manufacturer must meet in order to increase the MAX production rate in the next 30 days.

Last week, the agency said it found "non-compliance issues in Boeing's manufacturing process control, parts handling and storage, and product control."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.