Boeing CEO Dave Calhoun and other top executives are set to meet with the Federal Aviation Administration (FAA) to present a quality improvement plan aimed at addressing recent issues with staff training and production practices at the company’s factories. This plan comes after a concerning incident involving an airplane door panel on a new 737 Max 9 earlier this year, which raised questions about the company’s quality control measures.
Following the near-catastrophic blowout of the airplane door panel, the FAA mandated that Boeing submit a quality improvement plan within 90 days. The FAA Administrator, Mike Whitaker, will be part of the meeting with Boeing’s leadership to review the proposed plan. This order was a response to the discovery that bolts needed to secure the panel were not installed correctly before the plane was delivered to Alaska Airlines.
As a result of the incident and the FAA’s restrictions, Boeing has been forced to slow down production of the 737 Max aircraft until the agency is satisfied with the implemented quality control improvements. This halt in production has had cascading effects on airline customers like United and Southwest, who have had to adjust their growth plans due to aircraft delays.
Boeing’s Chief Financial Officer, Brian West, has stated that the company is now expecting to burn cash this year rather than generate it. For the current quarter, Boeing anticipates utilizing around $4 billion. This financial strain has added to the pressure on the company to expedite the implementation of their quality improvement plan.
Despite the 90-day plan being presented to the FAA, Boeing executives recognize that it is just the beginning of a long process. CFO Brian West mentioned that the plan is not a definitive solution but rather a step in the right direction. Boeing is looking forward to feedback after presenting the plan to the FAA and intends to continue making necessary improvements to regain trust.
Boeing’s update is expected to delve into the specific improvements made in staff training, such as simplified instructions for mechanics and ensuring the availability of necessary tools. Additionally, the company is set to discuss the reduction of “traveled work,” a practice where tasks on the planes are completed out of sequence. Boeing will also shed light on their factory “stand-downs,” where work was paused to have crucial conversations with employees about potential production line enhancements.
Boeing’s efforts to address the issues with the airplane door panel incident through their quality improvement plan are crucial in rebuilding trust with the FAA, airline customers, and the general public. The company’s commitment to enhancing staff training and production practices will be closely monitored as they navigate through this challenging period.
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