Federal air safety regulators have stripped Boeing Co.
BA 3.28%
authority to inspect and sign several newly produced 787 Dreamliners, which are part of an intense examination of production issues that have halted the delivery of popular wide-body aircraft.
The Federal Aviation Administration said its inspectors, instead of the aircraft manufacturer, would conduct routine safety checks prior to the delivery of four Dreamliners that Boeing has been unable to deliver to its airline customers for months while faces several lapses of quality.
For a long time, the agency has authorized Boeing to carry out the final safety signs on behalf of the FAA, allowing it to issue what are known as airworthiness certificates needed to deliver new aircraft to airlines. The FAA said it retained the same authority on some aircraft in previous years to keep inspectors’ skills up to date.
Now, the FAA said its move to retain final approval authority was part of a broader set of actions aimed at Boeing 787 production issues. A spokesman said the agency could decide that their own inspectors signed on more Dreamliners. “We can extend the hold to another 787 aircraft if we see the need,” he said.
A Boeing spokesman said Wednesday the company has committed the FAA in all its efforts to resume Dreamliner deliveries and would follow the agency’s directions on final approvals as it did in the past. The spokesman said Boeing was “encouraged by the progress our team is making” in restarting deliveries.
After stopping deliveries in October, Boeing has amassed an inventory of more than 80 newly-produced, undelivered Dreamliners, according to aviation consultancy Ascend by Cirium. Boeing has said it expects to resume deliveries in late March.
Wide-body aircraft have an excellent safety record and are frequently used on international routes. Boeing learned of the FAA measure in January and has already taken into account FAA casualties in the scheduled delivery schedule, said a person familiar with Boeing’s planning.
Among the specific aircraft scheduled for final approvals by agency inspectors are two Dreamliners ordered by United Airlines Holdings Inc.
United expects to receive the planes in late March or early April, a person familiar with Chicago Airlines plans said this week.
A Boeing spokesman said the manufacturer would adjust its delivery plans if necessary so that time could be taken to carry out 787 thorough inspections “to ensure each one meets our rigorous engineering specifications.”
The suspension of deliveries has cut a major source of cash paid by customers as the aircraft maker navigates the Covid-19 pandemic and weak demand for global air travel. Bernstein analyst Doug Harned has estimated that the slowdown in Dreamliner delivery could cost up to $ 8 billion in Boeing cash by 2020 and 2021. He expects half of those to recover next year , as the airlines will deliver it and pay the rest of the cost.
Boeing said in January that it would likely continue to burn cash this year, but that it has adequate liquidity after raising billions of dollars last year. Investors ’optimism about the broader recovery from the trip helped boost their shares by 21% last week. Shares gained another 3.3% on Wednesday, valuing Boeing at $ 149 billion.
While the scope is limited, the FAA’s move to the Dreamliner is similar to the step the agency took after two Boeing 737 MAX plane crashes that killed 346 people in 2018 and 2019.
The FAA withdrew its authority from Boeing to conduct security checks prior to the delivery of the MAX aircraft in late 2019. At that time, a faulty flight control system and erroneous steps related to production with that aircraft were under legislative and congressional control. The FAA approved the 737 MAX to resume passenger flights last year.
Dreamliner’s flaws are among several quality issues Boeing has faced in recent years in its commercial, defense and space programs.
Many of the 787 quality lapses involve small gaps where sections of the jet fuselage or body of the aircraft join. Problems have also surfaced elsewhere, including the vertical stabilizer and horizontal fin in the tail, according to a March 12 FAA summary of the agency’s regulatory actions that saw the Wall Street Journal.
Previously, Boeing has revealed problems with a factory process used to generate small panties, materials that are used to fill small gaps where sections of the plane join. These gaps can cause premature fatigue of certain parts of the aircraft, which may require extensive repairs during routine and long-term maintenance.
In its summary, the agency said it would maintain its Dreamliner approval authority “until it is confirmed that all limitation issues are resolved and the aircraft comply with the FAA-approved design.”
Write to Andrew Tangel and [email protected]
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