The Federal Aviation Administration (FAA) is loosening delivery restrictions on Boeing's newly manufactured aircraft, signaling positive progress for the aerospace manufacturer's recovery from a series of crises. Boeing is expected to regain partial regulatory authority to conduct final safety inspections on its 737 MAX jets.

According to sources familiar with the matter, the FAA could announce this approval as early as Friday. Boeing employees will regain safety sign-off authority in phases, while FAA inspectors will continue to participate in issuing airworthiness certificates, which are necessary documents for each aircraft to carry passengers.

The FAA is also expected to allow Boeing to increase 737 MAX monthly production from the current limit of 38 aircraft to 42 units. Regulators imposed production limits in early 2024 after an Alaska Airlines aircraft door panel blew out mid-flight, citing Boeing's excessive focus on production over quality.

This regulatory relief indicates growing U.S. government satisfaction with Boeing's efforts to improve manufacturing processes, marking Boeing's gradual restoration of regulatory trust following multiple crises.

**Safety Inspection Authority Returns in Phases**

The FAA typically delegates routine inspections to aerospace manufacturers to focus scarce personnel resources on more critical tasks. However, following two fatal 737 MAX crashes in 2019, regulators intensified oversight of Boeing.

The FAA began requiring that every new aircraft produced at the 737 MAX facility in Renton, Washington, be inspected solely by agency inspectors. The federal agency expressed concerns about Boeing employees facing pressure to produce and deliver aircraft, stating the need for closer manufacturing process monitoring to ensure public flight safety.

Subsequently, after a series of quality incidents, the FAA revoked similar authority for the 787 Dreamliner produced in South Carolina. According to some sources, Boeing is also expected to regain related authority for the Dreamliner.

**Production Restrictions Expected to Ease**

These restrictions meant Boeing lacked flexibility in delivering aircraft to customers, having to coordinate with government employee schedules to obtain safety approvals. Returning partial authority to Boeing could free up FAA inspectors to monitor aircraft production processes more closely rather than handling paperwork at the process endpoint.

According to sources, the FAA is also expected to allow Boeing to increase 737 MAX monthly production from the 38-unit ceiling to 42 aircraft. If approved to raise monthly production to 42 units, Boeing indicated it would maintain that level for several months to observe any issues before increasing monthly production by another 5 units.

CEO Kelly Ortberg stated at an investor meeting earlier this month: "Clearly there's strong demand in the market for our portfolio, and the faster we can ramp up production the better, but... we're not going to push it. If we're not ready, we'll wait another month."

**Regulatory Trust Gradually Restored**

Boeing's ability to conduct aircraft safety inspections has been a politically sensitive topic. Before the 2024 Alaska Airlines door panel incident, FAA frontline staff, management, and some senior agency officials had hoped to return authority to Boeing.

According to agency officials at the time, Boeing aircraft quality had been improving before that incident. However, given FAA criticism for lax oversight following various crises at the aircraft manufacturer, returning authority carried complex public relations implications.

The Alaska Airlines accident ensured Boeing would face stricter regulatory scrutiny for an extended period. Boeing Renton facility employees failed to secure fuselage panel bolts before the aircraft left the site. The FAA subsequently imposed production limits, established key performance indicators, deployed additional inspectors to Boeing facilities, and re-established permanent agency presence.

In early September, the FAA proposed a $3.1 million fine against Boeing for alleged safety violations including those related to the Alaska accident. Issues flagged by the FAA included Boeing submitting two problematic aircraft to the FAA for final approval and failing to follow its quality system.