US FAA opens new oversight review into Boeing safety practices

By David Shepardson

WASHINGTON (Reuters) -The Federal Aviation Administration said on Friday it will open a new safety review into Boeing (NYSE:BA) as the agency continues aggressive oversight of the U.S. planemaker after an in-flight emergency in January

The new review will probe issues like risk-assessment quality, resource allocation, and adherence to regulatory requirements, and is expected to take three months, the FAA said. An FAA spokesperson said the agency plans regular reviews of Boeing.

Last week, the Transportation Department’s Office of Inspector General criticized the FAA’s oversight of Boeing, saying the agency does not have an effective system to oversee the planemaker’s individual manufacturing facilities.

Boeing did not immediately comment.

The FAA said Friday it was reviewing Boeing’s operational safety processes “to ensure they meet FAA requirements and result in timely, accurate safety-related information for FAA use” and said it was “part of our aggressive oversight to ensure Boeing has the right tools to sustain lasting changes to its safety culture.”

An FAA audit of Boeing completed in February found 97 incidents of noncompliance, spanning “issues in Boeing’s manufacturing process control, parts handling and storage, and product control,” according to a U.S. Senate report, adding that the FAA found 23 examples where employees “failed to follow processes or lacked proficiency.”

FAA Administrator Mike Whitaker, who has regularly vowed to hold Boeing accountable for safety lapses, said last month safety culture improvements at Boeing may take three to five years to put in place.

The FAA’s oversight of Boeing came under new scrutiny after a door plug missing key bolts blew off a new Alaska Airlines 737 MAX 9 jet at 16,000 feet (4,880 meters) in January, prompting the Justice Department to open a criminal investigation and the FAA to open a separate probe.

A series of reports in recent years have raised concerns about the FAA’s oversight of Boeing. Last month, a U.S. Senate panel investigating Boeing’s culture faulted oversight by the agency.

Whitaker said last month he would revamp the FAA’s own safety management program. He said in June the agency was “too hands-off” in oversight of Boeing before January.

The FAA chief took the unprecedented step in January of barring Boeing from expanding 737 MAX production until he is satisfied they have made significant quality improvements.