Boeing CEO Dave Calhoun is set to meet with the Federal Aviation Administration (FAA) along with other top company leaders to present a quality improvement plan. This plan is aimed at showcasing better staff training and production practices at Boeing's factories.
The FAA ordered this report after a near-catastrophic incident involving an airplane door panel on a new 737 Max 9 earlier this year. Following the incident, FAA Administrator Mike Whitaker gave Boeing 90 days to come up with a quality improvement plan. Federal safety investigators discovered issues with the installation of bolts holding the panel in place before the plane was delivered to Alaska Airlines.
As a result of this incident, the FAA also restricted Boeing from increasing 737 Max production until they were satisfied with Boeing's quality control improvements. This situation has damaged Boeing's reputation, subjected it to increased federal scrutiny, and caused a slowdown in 737 Max output. Airlines like United and Southwest have had to adjust their growth plans due to these aircraft delays.
Boeing Chief Financial Officer Brian West stated that the company is expected to burn cash this year instead of generating it. In the current quarter alone, Boeing anticipates using about $4 billion. West also acknowledged that the 90-day plan is not a quick fix but rather a stepping stone towards improvement.
During the upcoming meeting with the FAA, Boeing is expected to detail improvements in staff training, including simplified instructions for mechanics and tool availability. The company is also likely to discuss the reduction of “traveled work,” where tasks are performed out of order on the planes. Additionally, Boeing is set to elaborate on its factory “stand-downs,” which are intended to facilitate discussions about potential production line enhancements with employees.
Boeing's presentation to the FAA on Thursday is crucial in showcasing the steps the company is taking to address quality control issues and improve overall safety measures. The outcome of this meeting will not only impact Boeing's reputation but also determine the future of their aircraft production and relationships with airline partners.