The Federal Aviation Administration (FAA) is intensifying its oversight of Boeing's (NYSE:BA) production and manufacturing processes, the regulator said.
A comprehensive audit is set to be conducted on the Boeing 737-9 MAX production line and its associated suppliers, specifically to assess Boeing's adherence to approved quality procedures.
The outcome of this audit analysis will serve as the basis for determining the necessity of further audits.
The new MAX 9 had "significant problems" and "we believe there are other manufacturing problems,” FAA Administrator Mike Whitaker told CNBC.
Boeing stock dropped 1.3% on the news. Spirit AeroSystems (NYSE:SPR), Boeing's key supplier, saw its stock fall nearly 1%.
Whitaker emphasized the importance of re-examining the delegation of authority and evaluating any potential safety risks associated with the current framework.
Additionally, there is consideration for the use of an "independent third party to oversee Boeing’s inspections and its quality system."