FAA Restores Partial Airworthiness Authority to Boeing

‍WASHINGTON, D.C. —The Federal Aviation Administration (FAA) will restore partial authority to Boeing for issuing airworthiness certificates for certain 737 MAX and 787 planes, effective September 29.

It comes after years of increased regulatory oversight following two deadly MAX crashes and resulting quality issues across several production lines.

Shared Certification Oversight

Under the revised procedure, BA and the FAA will alternate weekly in granting certificates for newly constructed aircraft. Regulators indicated that this change does not increase delivery levels but rather indicates an improvement in enhancing quality and safety systems.

The FAA further stated that it will continue to exercise "direct and rigorous oversight" of production and inspection procedures.

Ongoing Challenges

In January, the FAA halted MAX production at a rate of 38 units per month after a mid-air panel blowout on an Alaska Airlines (AS) Boeing 737-9. Since then, the agency has reported hundreds of quality failures at BA's Renton factory and at Spirit AeroSystems, its Wichita-based vendor.

The FAA also proposed a USD$3.1 million fine this month for a string of safety infractions, including cases of unairworthy planes being brought forward for approval.

Market, Regulatory Impact

BA shares increased by almost 5% after the announcement, reflecting investor confidence in the regulator's recognition of improved processes. Any subsequent requests to increase production, though, would need extensive FAA study and planning.

The action reflects a cautious move toward normalization, while maintaining safety as the paramount priority in regulating BA's commercial programs.