FAA Maintains Cap on Boeing 737 MAX Production

FAA Maintains Production Cap on Boeing 737 MAX

The U.S. Federal Aviation Administration (FAA) has decided to uphold the existing production limit on Boeing’s 737 MAX aircraft, maintaining the cap at 38 planes per month. Acting FAA Administrator Chris Rocheleau confirmed this decision following a U.S. House hearing, emphasizing that the agency will continue its policy of inspecting every 737 MAX and 787 jet before issuing airworthiness certificates. This approach remains unchanged despite Boeing’s ambitions to increase output.

Boeing’s Production Ambitions and Regulatory Challenges

Boeing is currently producing fewer than the FAA’s capped limit but has expressed intentions to raise production to 42 MAX jets per month, with plans to incrementally increase output by five aircraft every six months. CEO Kelly Ortberg recently conveyed confidence in meeting these targets, a statement that contributed to a 5% surge in Boeing’s share price. Nevertheless, the FAA’s decision to maintain the cap presents a significant obstacle as Boeing aims to eventually produce 47 planes monthly. The complexity of the 737 MAX 10 model, combined with ongoing regulatory scrutiny, further complicates the company’s efforts to scale production.

The production cap was initially imposed following a mid-air emergency in January 2024 involving an Alaska Airlines 737-9, which was discovered to be missing four critical bolts. In response, the FAA mandated direct inspections of all newly manufactured 737 MAX and 787 aircraft prior to granting airworthiness certification, a requirement that remains firmly in place.

Broader Production and Regulatory Context

In addition to the 737 MAX, Boeing is pursuing an increase in production of its 787 Dreamliner from seven to ten aircraft per month. The company is also working to certify additional 737 MAX variants by the end of the year, a move that could enhance its competitive standing in the commercial aviation market. While major customers such as Emirates have expressed renewed optimism regarding Boeing’s recovery, the challenge of rapidly scaling production persists.

Separately, the FAA is considering a three-year extension of the Organization Designation Authorization (ODA) program, which permits Boeing to perform certain regulatory functions, including inspections and repair approvals, on the agency’s behalf. The program was last renewed for three years in May 2022, a shorter term than the usual five years, reflecting heightened scrutiny following two fatal 737-8 crashes in 2018 and 2019. The FAA has reported improvements in Boeing’s performance but will maintain rigorous oversight throughout the renewal period.

As Boeing strives to regain momentum and rebuild trust with regulators and customers, the FAA’s sustained oversight and production restrictions highlight the ongoing challenges confronting the aerospace manufacturer.