Boeing to Present Quality Improvement Plan to FAA in Effort to Restore Reputation

Boeing CEO Dave Calhoun and other top company leaders are set to meet with the Federal Aviation Administration (FAA) to present a quality improvement plan aimed at addressing staff training and production practices. This meeting comes after a near-catastrophic incident involving an airplane door panel on a new 737 Max 9 earlier this year. The FAA had given Boeing 90 days to come up with a quality improvement plan following the incident.

The investigation into the incident revealed that bolts holding the panel in place had not been properly installed before the plane was delivered to Alaska Airlines. As a result, the FAA also restricted Boeing from increasing production of the 737 Max until they were satisfied with the company’s quality control improvements. This limitation is unlikely to be lifted during the upcoming meeting.

The repercussions of this crisis have been significant for Boeing. The company’s reputation has been tarnished, and they have faced increased federal scrutiny. Additionally, the need to address safety concerns has forced Boeing to slow down production of the 737 Max, leading to delays for airline customers such as United and Southwest who had to adjust their growth plans accordingly.

Financially, Boeing is also facing challenges. Chief Financial Officer Brian West recently stated that the company expects to burn cash this year instead of generating it. They anticipate using around $4 billion for the current quarter alone. This further highlights the urgency for Boeing to address the issues plaguing their operations.

During the meeting, Boeing will provide details on their efforts to improve staff training, including simplified instructions for mechanics and ensuring availability of necessary tools. They will also discuss their approach to reducing “traveled work,” which refers to tasks being done out of sequence on the planes. Additionally, Boeing will elaborate on their implementation of factory “stand downs,” where work was temporarily paused to have conversations with employees about potential improvements on production lines.

CEO Calhoun has acknowledged that the 90-day plan is not a quick fix for the company. He has expressed openness to receiving feedback and suggestions for improvement. In fact, Boeing has already received over 30,000 ideas on how to enhance their operations, and feedback from staff has increased by 500% compared to the previous year.

Overall, the meeting between Boeing and the FAA represents a crucial step towards addressing the safety concerns surrounding the 737 Max. By presenting a comprehensive quality improvement plan and demonstrating their commitment to addressing the issues, Boeing aims to regain trust and rebuild their reputation in the aviation industry. However, it is clear that this process will take time, and ongoing efforts will be required to fully resolve the challenges faced by the company.