Boeing (BA.US) production capacity expansion ushered in a critical turning point! FAA reinstates final licensing rights for new 737 Max and 787

The Zhitong Finance App learned that the US Federal Aviation Administration (FAA) said that even if Boeing (BA.US)'s authority to finally sign the release of the newly produced 737 Max and 787 aircraft has been restored, regulators will continue to monitor the aircraft manufacturer's quality level.

FAA Deputy Director Chris Rochello said in an interview: “We have been working very closely with Boeing to ensure that they — as we said — can 'turn the curve' in terms of their ability to produce safe aircraft.” He added: “As far as the current state of regulation and supervision is concerned, we are very confident about this.”

Following the near-catastrophic accident of a 737 Max aircraft in 2024, regulators discovered that Boeing had a range of quality issues. Subsequently, the FAA restricted Boeing's aircraft production and removed the company's authority to execute the final release agreement on newly produced aircraft.

The FAA said that the decision to restore Boeing's relevant authority will officially take effect on July 20, reflecting the company's progress in improving quality management and regaining the trust of regulators. This is critical for Boeing to scale up production, improve its financial position, and regain an edge in competition with rival Airbus. Currently, the US aircraft manufacturer is working to stabilize the production of its “Cash Cow” 737 series aircraft. The goal is to maintain monthly production at 47 aircraft, and plans to gradually increase it to 63 aircraft over the next few years.

Earlier this month, Boeing officially opened its fourth 737 Max assembly line near Seattle to deliver its growing backlog of orders, although initial production at the new line will be relatively low. This new production line is a key part of Boeing's increase in production of the 737 MAX series. Boeing senior executive Jennifer Borand-Masterson said at the time that Boeing will use a low-speed production model at this stage to investigate and resolve various hidden production hazards and ensure the smooth operation of production lines. She did not reveal the specific pace of expansion of this production line, but said that in the future, the recruitment of workers will be gradually expanded as production capacity increases.

US regulators are also expected to approve the latest model in the 737 Max series within the next few months. Although Rocello said he was unable to give a specific certification schedule for the 737 Max 7 and Max 10 models, he said Boeing was “getting closer day by day” to approval. He noted that the certification of the 737 Max 7 is “very close to completion.”