HALT ORDER BY FAA ON BOEING INCREASES

Boeing the US aerospace company that manufactures commercial and military aircraft, including the 737 Max series was halted by the FAA after two fatal crashes in 2018 and 2019 for 20 months. The FAA, the US aviation regulator, allowed the 737 Max to resume flights in November 2020 after Boeing made several changes to the software and hardware of the plane.

However, on January 5, 2024, another incident occurred with a 737 Max 9 operated by Alaska Airlines. A door plug blew off mid-flight, causing a loss of cabin pressure and forcing the plane to make an emergency landing. The FAA grounded the 737 Max 9 planes again and ordered Boeing to halt any further production-rate increases for the 737 Max aircraft until the agency is satisfied that the quality control issues are resolved. The FAA also approved inspection procedures for the 737 Max 9 aircraft, paving the way for the planes to return to service in the coming days. The two US airlines that have the 737 Max 9 in their fleets, United Airlines and Alaska Airlines, said they would resume flights with the plane after completing the inspections.

The production halt and the grounding are a major setback for Boeing, which has been struggling to recover from the financial and reputational damage caused by the previous 737 Max crashes. The company has been trying to ramp up output of its best-selling aircraft as airlines demand new jets to meet the rising demand for air travel after the Covid-19 pandemic. Boeing’s CEO, Dave Calhoun, is expected to set annual targets for Boeing’s 737 deliveries on January 31, 2024, when the company reports its earnings.

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