Boeing On The Clock: 90 Days To Avoid Penalties After FAA Safety Ultimatum

The U.S. Federal Aviation Administration (FAA) has issued a stern ultimatum to Boeing Co (NYSE:BA) to rectify its “systemic quality-control issues” within 90 days or face serious repercussions.

What Happened: The FAA has demanded Boeing to draft a comprehensive plan to address its quality-control problems within the stipulated time frame following a recent safety scare, reported Reuters.

The FAA’s move comes in the wake of an alarming incident where a door panel detached during a flight of a new Alaska Airlines 737 MAX 9, forcing an emergency landing. This event has reignited safety concerns and has led to a reevaluation of Boeing’s safety protocols.

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FAA Administrator Mike Whitaker criticized Boeing’s response to the incident and emphasized the need for “real and profound improvements.” The plan must include the findings of an upcoming FAA production-line audit and an expert review panel report, which was recently released and was highly critical of Boeing’s safety management processes.

Boeing could face criminal liability if the Justice Department determines that the MAX 9 blowout breaches a 2021 deferred-prosecution agreement over two fatal 737 MAX 8 crashes.

Why It Matters: The FAA’s ultimatum to Boeing comes in the wake of a scathing report that highlighted significant concerns within Boeing’s safety culture. This latest directive underscores the urgency for Boeing to address these longstanding issues.

Earlier in January, a Boeing expert had warned that the FAA’s mandatory production freeze of the 737 MAX aircraft due to the door plug incident could lead to customer loss and certification challenges for the MAX 7 and MAX 10 aircraft.

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