FAA raises Boeing 737 Max production cap to 42 a month

Boeing has reached a significant milestone in its efforts to ramp up production of its 737 Max jetliners. The company has received regulator approval to increase production to 42 aircraft per month, a notable step forward for the manufacturer. This development comes nearly two years after the Federal Aviation Administration (FAA) capped Boeing’s output following a midair incident involving a 737 Max 9.

The incident, which occurred in January 2024, involved a door plug blowing off from an Alaska Airlines flight as it climbed out of Portland, Oregon. An investigation by the National Transportation Safety Board found that Boeing had failed to reinstall key bolts on the door plug before the plane left the factory. Fortunately, the aircraft returned and landed safely, but the incident raised concerns about Boeing’s production processes.

Regulator Approval and Production Increase

The FAA has given Boeing the green light to increase production, but the agency will continue to oversee the company’s production lines to ensure that the higher production rate does not compromise safety. “FAA safety inspectors conducted extensive reviews of Boeing’s production lines to ensure that this small production rate increase will be done safely,” the agency stated. Boeing has pledged to work with its suppliers to increase production while maintaining safety and quality standards.

For Boeing, increasing production is crucial to its turnaround efforts. The company has faced numerous challenges in recent years, including the grounding of the 737 Max program following two fatal crashes in 2018 and 2019, as well as supply chain problems and a labor strike at its main factories in the Seattle area. As a result, Boeing has not posted an annual profit since 2018. However, with the increased production rate, the company is hoping to get back on track and deliver more aircraft to its customers.

Future Plans and Outlook

Boeing’s CEO, Kelly Ortberg, has expressed confidence in the company’s ability to continue increasing production in the coming months. In a recent investor conference, Ortberg stated that the company plans to raise production to 47 aircraft per month, which would help to balance inventory with supply chain demand. The FAA’s decision to allow Boeing to sign off on some of its aircraft itself, rather than requiring the agency’s approval, is also seen as a positive development for the company.

As Boeing prepares to release its quarterly results on October 29, the company is hoping to build on the momentum generated by the increased production rate. With the 737 Max program slowly getting back on track, Boeing is poised to make a significant comeback in the aerospace industry. The company’s efforts to prioritize safety and quality, while also increasing production, will be closely watched by regulators, customers, and investors in the coming months.