Federal regulators are reportedly preparing to ease restrictions on Boeing Co. (NYSE: BA) by restoring some authority to perform final safety checks on its aircraft, signaling relief for the manufacturer's strained delivery process.
The Federal Aviation Administration (FAA) is expected to allow Boeing employees to resume phased authority for safety sign-offs on 737 MAX jets, The Wall Street Journal reported.
FAA inspectors would still issue final airworthiness certificates, while focusing more on monitoring production quality.
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The agency tightened oversight in 2019 after two fatal 737 MAX crashes and later revoked similar authority for the 787 Dreamliner following quality lapses.
Officials now suggest Boeing could regain that authority for the Dreamliner as well. Returning some responsibility is viewed as a sign of progress in Boeing's manufacturing practices.
Separately, the FAA is considering whether to let Boeing lift its 737 MAX production rate to 42 jets per month, up from the current cap of 38 imposed after a midair fuselage panel blowout on an Alaska Airlines jet in early 2024.
Boeing CEO Kelly Ortberg told investors the company would hold output steady for several months before any further increases.
Earlier this month, the FAA proposed $3.1 million in fines against Boeing for alleged safety violations tied to the Alaska incident. The company is also facing a court challenge as families of 737 MAX crash victims oppose the Justice Department's effort to dismiss fraud charges.
In late July, the FAA cleared Boeing to advance certification of its 777-9 aircraft to the system demonstration phase.
Additionally, Boeing announced two major aircraft deals with Norwegian Group and Turkish Airlines on Friday.
Norwegian ordered 30 737-8 jets, its first direct purchase from Boeing since 2017, while Turkish Airlines placed its largest widebody order for up to 75 787 Dreamliners and signaled plans for as many as 150 more 737 MAX aircraft.
Price Action: BA shares are trading higher by 4.17% to $222.44 at last check Friday.
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