Boeing sees signs of recovery? Report: FAA to gradually ease delivery restrictions, paving the way for faster 737 MAX production

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The U.S. Federal Aviation Administration (FAA) is easing delivery restrictions on newly produced Boeing aircraft, a positive sign for the manufacturer’s recovery from a series of crises. Boeing is expected to regain some regulatory authority to conduct final safety inspections on its 737 MAX jets.

According to informed sources, the FAA may announce this approval decision as early as Friday. Boeing employees will gradually regain safety sign-off authority, while FAA inspectors will still be involved in issuing airworthiness certificates, which are required for each aircraft to carry passengers.

The FAA is also expected to allow Boeing to increase the monthly output of the 737 MAX from the current cap of 38 units to 42. Previously, the regulator imposed production limits after an Alaska Airlines jet’s door panel blew off midair in early 2024, citing Boeing’s excessive focus on output rather than quality.

This easing of regulatory burdens indicates growing satisfaction from the U.S. government with Boeing’s efforts to improve manufacturing processes, marking a gradual restoration of trust in Boeing by regulators after several crises.

Phased Return of Safety Inspection Authority

The FAA typically delegates routine inspections to aerospace manufacturers so that limited personnel resources can be focused on more critical tasks. But after two deadly 737 MAX crashes in 2019, regulators tightened oversight of Boeing.

The FAA began requiring that every newly produced 737 MAX from its Renton, Washington plant be checked by agency inspectors only. Federal officials worried that Boeing employees faced pressure to produce and deliver planes, stating a need for closer monitoring of the manufacturing process to ensure public flight safety.

Subsequently, after a series of quality incidents, the FAA also revoked the same authority for 787 Dreamliners produced in South Carolina. According to some informed sources, Boeing is also expected to regain those rights for the Dreamliner.

Production Restrictions Likely to be Eased

This restriction meant Boeing lacked flexibility in delivering planes to customers, having to coordinate with government employees’ schedules for safety approval. Returning some authority to Boeing can free FAA inspectors to monitor plane production more closely, rather than being occupied with end-stage paperwork.

According to informed sources, the FAA is also expected to allow Boeing to raise the 737 MAX monthly output limit from 38 units to 42. If approved for the increase to 42 per month, Boeing says it will maintain that level for several months to observe any issues before adding another 5 units per month.

CEO Kelly Ortberg said at an investor conference earlier this month, “Clearly, there’s strong market demand for our product lineup. The faster we can ramp up production, the better. But...we won’t force it. If we’re not ready, we’ll wait another month.”

Gradual Restoration of Regulatory Trust

Boeing’s ability to conduct aircraft safety inspections has always been a politically sensitive matter. Prior to the Alaska Airlines door panel incident in 2024, frontline FAA staff, managers, and some senior officials wanted to return the authority to Boeing.

According to agency officials at the time, the quality of Boeing planes had been improving before the incident. However, given heavy criticism of the FAA for lax oversight amid Boeing’s various crises, returning authority brings complex public opinion implications.

The Alaska Airlines incident ensured that Boeing would continue to face stricter regulatory scrutiny for a longer period. Employees at Boeing’s Renton plant failed to fasten fuselage panel bolts before the plane left the site. The FAA subsequently implemented production limits, set key performance metrics, sent more inspectors to the plant, and reestablished a permanent presence.

In early September, the FAA proposed a $3.1 million fine for Boeing for alleged safety violations related to the Alaska incident, among others. Problems cited by the FAA included Boeing submitting two faulty planes to the FAA for final approval and failing to follow its quality system.

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