The office of the inspector general of the U.S. Transportation Department will audit the Federal Aviation Administration's (FAA's) oversight of Boeing 737 and 787 productions.
What happened: Boeing Co (NYSE:BA) has not delivered any 787 aircraft in over a year due to the production quality issues, and in December 2021, FAA mandated inspections on certain previously delivered 787 aircraft due to reports of missed requirements during assembly, mentioned OIG.
Several complaints to Congress, FAA, and OIG's office have alleged ongoing production deficiencies and undue pressure on Boeing staff in the 737 and 787 production lines.
In light of these concerns, the Chairmen and Ranking Members of the House Transportation and Infrastructure Committee and its Subcommittee on Aviation requested OIG to evaluate the FAA's oversight of Boeing aircraft production.
Why It's Important: The objective is to evaluate the FAA's oversight of Boeing 737 and 787 productions, specifically its processes for identifying and resolving production issues and addressing allegations of undue pressure within the production environment.
Price Action: BA shares are trading lower by 2.10% at $135.54 during the premarket session on Thursday.
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