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Tipsheet

The FAA Has Even More Bad News for Boeing

AP Photo/Lindsey Wasson

Boeing's rotten week got even worse on Friday morning when the Federal Aviation Administration announced that, in addition to an investigation launched on Thursday, the FAA would also be increasing its oversight of the aircraft manufacturer and looking at requiring independent, third-party monitoring of its authority delegation and safety oversight functions. 

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As Vespa reported earlier this week, the FAA is investigating whether Boeing "failed to ensure completed products conformed to its approved design and were in a condition for safe operation in compliance with FAA regulations," and now it seems the FAA doubts that Boeing is capable of keeping an eye on its own production.

Calling Friday's actions "new and significant," the FAA said that it will "immediately increase its oversight of Boeing production and manufacturing." 

Primarily, the FAA is launching an audit of "the Boeing 737-9 MAX production line and its suppliers to evaluate Boeing's compliance with its approved quality procedures." If that review turns up more issues, the FAA said there may be a need for "additional audits." 

The FAA also said it is also beginning increased monitoring of Boeing 737-9 MAX "in-service events" as part of its increased scrutiny of the company's processes and adherence to safety rules.

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Lastly, the latest federal action related to Boeing in the wake of an Alaska Airlines 737-9 MAX door plug blowing out includes an assessment of "safety risks around delegated authority and quality oversight" that will include an "examination of options to move these functions under independent, third-party entities."

FAA Administrator Mike Whitaker said in a statement "[i]t is time to re-examine the delegation of authority and assess any associated safety risks" at Boeing. "The grounding of the 737-9 and the multiple production-related issues identified in recent years require us to look at every option to reduce risk," explained Whitaker. "The FAA is exploring the use of an independent third party to oversee Boeing’s inspections and its quality system."

Whitaker joined CNBC on Friday morning to explain more about the federal government's concerns and continued frustration with Boeing:

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Reiterating its statement that the "safety of the flying public, not speed, will determine the timeline for returning the Boeing 737-9 MAX to service," the FAA is clearly not thrilled with Boeing, especially in light of the issues with the 737-8 MAX that led to federal charges against the manufacturer for "misleading statements, half-truths, and omissions communicated by Boeing employees to the FAA" that "impeded the government’s ability to ensure the safety of the flying public."

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