The Federal Aviation Administration (FAA) will be keeping a closer eye on Boeing Co (NYSE:BA, ETR:BCO) production and manufacturing in the wake of a panel blowing out of an Alaska Air Group (NYSE:ALK) 737 Max 9 plane in midair, forcing an emergency landing.
The FAA opened an investigation into the company on Thursday and a day later said it would audit the 737 Max 9 production line along with Boeing’s suppliers in order “to evaluate Boeing’s compliance with its approved quality procedures,” according to a statement.
The audit is expected to determine whether additional audits are required, the agency said.
"The grounding of the 737-9 and the multiple production-related issues identified in recent years require us to look at every option to reduce risk," FAA administrator Mike Whitaker said in a statement. "The FAA is exploring the use of an independent third party to oversee Boeing’s inspections and its quality system."
The agency also plans to step up its monitoring of 737 Max 9 in-service events and evaluate potential safety risks related to “delegated authority and quality oversight.”
Earlier this week, United Airlines Holdings Inc (NASDAQ:UAL) and Alaska Air each reported loose bolts on Boeing 737 Max 9 planes in inspections.
Alaska Airlines said Monday that initial inspections discovered “loose hardware,” adding that: “No aircraft will be returned to service” until formal reviews are complete.
Shares of Boeing fell 1.9% Friday morning to $218.47.