Boeing safety improvements vital for profitability: FAA head

(Reuters) — The head of the Federal Aviation Administration told a U.S. Senate panel Wednesday that Boeing Co. must address a series of safety issues before he will let them boost 737 MAX production, warning the issue could impact company profits.

FAA Administrator Mike Whitaker capped production at 38 MAX planes per month in January after a door panel missing four key bolts flew off an Alaska Airlines 737 MAX 9 midair in January.

“They cannot grow to where they need to grow without” making broad safety improvements in six key categories and maintaining those improvements at higher production rates, Mr. Whitaker said at a Senate Permanent Subcommittee on Investigation hearing on FAA’s oversight of Boeing. “They don’t do that, they don’t grow, and if they don’t grow, they’re not going be able to achieve profitability.”

The company did not immediately respond to a request for comment on the hearing.

Senator Richard Blumenthal, chair of the committee, noted that Boeing produced 52 planes per month in 2018 but production has slid below 38. He asked if lowering the cap would make it more effective.

“Boeing has put profits and speed of production ahead of quality and safety, and ultimately that failing is at the core of its current difficulty,” Mr. Blumenthal said.

Reuters reported Sept. 10 that Boeing told suppliers it was delaying a key production milestone for its 737 MAX by six months, according to three industry sources, a sign the plane-maker was struggling to boost production of its best-selling jet.

Boeing has not changed its official plane production target, which calls for 38 MAX jets a month by the end of this year, up from roughly 25 jets a month in July.