01/25/2024

FAA Halt to Boeing MAX Production Expansion to Hit Airlines, Suppliers

This is an unprecedented intervention in production schedules

The aerospace industry faces widening disruption from the blowout of a panel on an Alaska Airlines opens new tab Boeing, opens new tab jet after U.S. regulators froze increases in production of the 737 MAX, raising concerns over growth plans of airlines and suppliers worldwide.

The Federal Aviation Administration (FAA) announced the unprecedented intervention in production schedules late on Wednesday, in a double-edged decision that also saw the partial grounding of the MAX 9 model lifted once inspections are done.

The FAA said the order meant Boeing could continue producing MAX jets at the current monthly rate, but it could not increase that rate. It offered no estimate of how long the limitation would last and did not specify the number of planes Boeing can produce each month.

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