FAA halts Boeing 737 Max production expansion but clears path

FAA halts Boeing 737 Max production expansion, but clears path to return Max 9 to service

The Alaska Airlines N704AL is seen on the ground in a hangar at Portland International Airport in Portland, Oregon on January 9, 2024.

Mathieu Lewis Rolland | Getty Images

The Federal Aviation Administration on Wednesday halted Boeing's planned expansion of 737 Max plane production but cleared the way for the manufacturer's Max 9 to return to service, nearly three weeks after a door plug blew through on an Alaska Airlines flight.

“Let me be clear: It will not be business as usual for Boeing,” FAA Administrator Mike Whitaker said in a statement Wednesday. “We will not approve any request from Boeing to expand production or authorize additional production lines for the 737 MAX until we are satisfied that the quality control issues uncovered during this process have been resolved.”

Boeing did not immediately comment. Following the FAA's announcement, the company's shares fell about 4% in after-hours trading.

Boeing has been scrambling to increase production of its best-selling planes as airlines clamor for new jets in the wake of the pandemic.

The FAA also announced Wednesday that it had approved inspection instructions for the Max 9 aircraft. Airlines had been waiting for this approval to review their fleets and return these aircraft to service.

The FAA grounded the 737 Max 9 planes after a fuselage panel exploded during takeoff of Flight 1282 from Portland, Oregon, on Jan. 5. The grounding forced United Airlines and Alaska, the two U.S. carriers with the planes, to cancel hundreds of flights.

The CEOs of United and Alaska expressed frustration with Boeing after the incident, the most serious in the recent spate of apparent manufacturing defects on Boeing planes. The aircraft for the Alaska flight was delivered late last year.

The FAA is investigating Boeing's production lines after the Alaska flight. Whitaker told CNBC on Tuesday that the FAA would “stay grounded” at the Boeing plant until the agency is satisfied that quality systems are working. He said the agency was moving to a “direct inspection” approach with Boeing.