By David Shepardson
CHICAGO (Reuters) -The head of the Federal Aviation Administration said on Thursday that Boeing (NYSE:BA) has not yet resumed producing 737 MAX airplanes following a machinists strike, but plans to begin later this month.
FAA Administrator Mike Whitaker this week met with Boeing CEO Kelly Ortberg and toured Boeing’s 737 plant in Renton, Washington, as it boosts oversight following the strike, which ended Nov. 4.
Whitaker said Boeing’s plan is to slowly restart production later this month and he plans another meeting in January as the company ramps up.
“The thing that I was most struck by was we’re four weeks post-strike and they’re still not producing airplanes, because they’re focused on their workforce, the training, making sure they have the supply chain sorted out,” Whitaker told Reuters in a wide-ranging interview.
Boeing, whose shares closed down 1%, did not respond to a request for comment.
The 737 is Boeing’s top-selling airliner, making the production restart vital to the aircraft maker’s financial future.
Whitaker capped production at 38 737 MAX planes per month in January after a door panel missing four key bolts flew off an Alaska Airlines 737 MAX 9 during a flight that month, exposing serious safety issues at Boeing.
He declined to say when he thought the FAA would restore Boeing’s ability to produce more than 38 planes per month, but said he would be surprised if it was less than multiple months before they get close to the 38 maximum.
“We really get great visibility on that journey up from 0 to 38 to see how they’re doing,” Whitaker said.
Whitaker said he expected to receive a proposed 737 MAX engine de-icing fix as soon as later this month that has been holding up certification of the MAX 7. “We have done everything we can on our side awaiting that solution on the de-icing” Whitaker said. “That solution has to go into the current production line and then has to be part of the certification (application).”
Whitaker, who announced another audit of Boeing in October, has said it could take five years for Boeing to reform its safety culture, but noted the planemaker has deployed a new parts management system and improved training, adding, “What I saw this week was really what I expected to see.”
He wants Boeing to adopt an effective Safety Management System, which are a set of policies and procedures to proactively identify and address potential operational hazards.
“We haven’t seen evidence of it working the way it’s supposed to work, where your risk assessment is driving your behavior,” Whitaker said. The National Transportation Safety Board has also said Boeing’s SMS failed to catch problems years earlier.
One key initiative for Boeing was to stop taking delivery of fuselages from Spirit AeroSystems (NYSE:SPR) with uncompleted work. Whitaker said the FAA has been focused on “verifying that we have the right inspection points.”
In a separate Reuters interview, Transportation Secretary Pete Buttigieg said Boeing “has taken the requirements and pressure seriously and I am hopeful that keeps things on track.”
Whitaker was unanimously confirmed to a five-year term in October 2023, but President-elect Donald Trump has signaled plans to oust many officials with terms extending beyond Jan. 20, when he takes office.
Whitaker said he has had some preliminary conversations with the Trump transition team and plans more, adding it was too early in the conversation to say if he expects to remain in the job.