Boeing’s production of the 737 MAX jetliner has significantly declined due to regulatory checks and safety audits. The US Federal Aviation Administration (FAA) imposed a production limit after a blowout incident in January. The assembly line has been slowed down, impacting overall production and supply.
Safety concerns have also led to the grounding of 171 Boeing 737 MAX 9 planes, causing a sharp drop in the company’s stock value.
Concerns regarding safety were heightened following an event on January 5, wherein an Alaska Airlines flight traveling from Portland, Oregon to California had to return after a door panel detached at 16,000 feet (4,900 meters).
The door plug of the Boeing 737 MAX 9 planes had four important bolts missing, according to the National Transportation Safety Board investigators.
Meanwhile, the FAA conducted an initial investigation and concluded that Boeing’s safety culture is lacking.
As a result, the regulator decided to ground 171 planes to inspect for any other loose parts. Since this incident, the shares of the aerospace giant have plunged by over 25%.
Boeing‘s Chief Financial Officer (CFO), Brian West, announced last month that the company was making significant efforts to enhance quality and instill trust. These efforts included reducing the backlog of work as the FAA intensified its inspections and audits at the factory. The executive emphasized that the FAA’s involvement was extensive, and they were conducting a more rigorous audit than ever before.
The company’s President and Chief Executive Officer, Dave Calhoun, has revealed his intention to resign by the end of this year, marking a significant change in the company’s leadership.
