FAA to Audit Boeing After Door Incident

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Facts

  • The US Federal Aviation Administration (FAA) announced Friday that it will audit Boeing's manufacturing and production in an effort to bolster oversight after a passenger door plug blew off a 737 Max 9 aircraft last week.1
  • The audit comes one day after the FAA announced an investigation into Boeing and will examine the 737 Max 9's production line and its suppliers 'to evaluate Boeing’s compliance with its approved quality procedures.' The regulator will use the initial audit to determine if a third-party independent audit is necessary.2
  • Last Saturday, the FAA grounded 171 Max 9s one day after Alaskan Airlines Flight 1282 had to make an emergency landing because a door plug flew off the aircraft, exposing the fuselage. No one was sitting in the seats where the panel flew off, and no passengers or crew were seriously injured in the incident.3
  • FAA Administrator Mike Whitaker told CNBC that the 737 Max 9 had 'significant problems' and that his agency believes there are 'other manufacturing problems.' 171 planes remain grounded, and the FAA said that the Max 9 will not fly until it passes all safety inspections. Meanwhile, Alaska and United Airlines have both reported finding loose parts on grounded Max 9s.4
  • In the wake of last week's incident, Boeing Chief Executive Officer David Calhoun has said that the large aircraft manufacturer acknowledges its mistake and is 'going to approach it with 100% and complete transparency every step of the way.' Calhoun said that he is 'confident' in the FAA's inspections, and CNN reports that a Boeing source believes the mistake was due to a problem in the airplane's production chain.5
  • Boeing’s shares fell 1.5% the morning after the FAA’s announcement and nearly 12% since the door incident. Boeing, which is the US's largest plane manufacturer, has had several safety incidents in the past few years that have raised concerns from regulators.6

Sources: 1CNBC, 2NBC, 3Verity, 4Forbes, 5CNN and 6Yahoo Finance.

Narratives

  • Right narrative, as provided by New York Post. Thankfully, no one was harmed during the dramatic incident in which a door panel flew off the side of a Boeing plane, however, there is a clear danger that a similar malfunction could become the norm. Corporate programs that focus on issues like diversity, equity, and inclusion have often been prioritized over safety initiatives. These firms need to re-focus on quality and safety.
  • Left narrative, as provided by Barrons. There was obviously a problem at some point in Boeing's production and manufacturing of the 737 Max 9 involved in last week’s incident, but the problem is not in diversity, equity, and inclusion programs that are vital to a vibrant workforce. The issue is instead on the private sector pursuing ruthless profits and cutting corners in the production process — more regulation and oversight are needed.

Predictions