WASHINGTON – On Friday, a federal watchdog criticized the Federal Aviation Administration’s oversight of Boeing (NYSE: BA) airplane production, saying it does not have an effective system to oversee the planemaker’s individual manufacturing facilities.
In a report, the Transportation Department’s Office of Inspector General said the FAA’s current audit processes “are not comprehensive enough to adequately identify key discrepancies and noncompliances within the Boeing production line” and said the FAA has not addressed longstanding weaknesses in Boeing’s oversight of suppliers despite long-known risks.
The FAA’s oversight of Boeing has gotten new scrutiny after a door plug missing key bolts blew off a new Alaska Airlines 737 MAX 9 jet at 16,000 feet in January, prompting the Justice Department to open a criminal investigation.
The report issued 16 recommendations. The FAA said it agrees with all of them and “is committed to continuously improving our oversight processes.” The FAA added it “is currently conducting a comprehensive, systemwide review of our oversight models.”
The report said the FAA hasn’t been able to resolve allegations of undue pressure on Boeing (NYSE: BA) employees acting on the FAA’s behalf in a timely fashion because it has not enforced requirements that Boeing provide sufficient information on the allegations.
Boeing did not immediately comment.
The report that reviewed oversight of the Boeing 737 and 787 said the FAA “has yet to move from a reactive approach focused on addressing individual manufacturing issues to a more proactive, data-driven model to identify and address risk within Boeing’s manufacturing processes at all levels.”
A series of reports in recent years have raised concerns about the FAA’s oversight of Boeing. Last month, a U.S. Senate panel investigating Boeing’s culture faulted oversight by the Federal Aviation Administration citing documents obtained in an ongoing investigation.
Last month, FAA Administrator Mike Whitaker said he would revamp its own safety management program. He said previously the agency was “too hands off” in oversight of Boeing before January. In January, he took the unprecedented step of barring Boeing from expanding 737 MAX production until he was satisfied they had made significant quality improvements.
(Source: Reuters)
Jennifer Tacker is a staff writer at ABBO News. She holds a B.A. from the University of Waterloo and a B.Ed from Western University. Jennifer has been active in the stock market and crypto sector for a decade. She specializes in technical analysis and trading strategies.
