The Federal Aviation Administration (FAA) plans to increase oversight of Boeing following an incident with Alaska Airlines. FAA Chief Mike Whitaker admitted that the agency had been too hands-off in its oversight of Boeing in the past, focusing more on paperwork audits than inspections. The FAA is now adding more inspections to its oversight of Boeing and its suppliers, with a focus on improving production and quality control processes. After a door plug fell off an Alaska Airlines 737 Max 9, resulting in the plane being grounded for nearly a month, the FAA is taking a harder stance on the plane maker.
Boeing has submitted a detailed plan to the FAA on how it plans to improve its operations, including not accepting fuselages from supplier Spirit that don’t conform to Boeing’s standards. The federal agency is unlikely to increase the production cap on the 737 Max 9 in the near future, with the agency continuing to monitor Boeing’s progress and deployment of the improvement plan. Senior FAA leaders will meet with Boeing weekly to review performance metrics and progress as part of the turnaround plan.
The FAA is actively investigating Boeing and processing reports from whistleblowers, including allegations of shortcuts taken in producing the 787 Dreamliner. Boeing CEO Dave Calhoun is expected to testify to the Senate subcommittee on these issues. Senator Richard Blumenthal, chair of the subcommittee, emphasized the importance of addressing Boeing’s failures, regaining public trust, and restoring the company’s role in the American economy and national defense.
In terms of the airlines sector stock index performance year-to-date, the Skift Travel 200 (ST200) includes the financial performance of nearly 200 travel companies across global markets. This index provides insights into the performance of airline sector stocks, including network carriers, low-cost carriers, and related companies. By combining the financial performance of these companies worth more than a trillion dollars into a single number, the ST200 offers a comprehensive view of the airlines sector’s performance in the market.
