Tuesday brought word that the U.S. Federal Aviation Administration is reviewing quality-control lapses at Boeing (NYSE:BA) that could stretch back almost a decade. The Wall Street Journal came out with a report on the plane maker Monday, citing an internal government memo.
The review piles onto the numerous regulatory issues Boeing has faced in the wake of two crashes involving its 737 Max planes that killed all 346 people onboard the two flights. Since then, Boeing has faced renewed scrutiny over its safety standards and manufacturing protocols as well as a deluge of questions from both regulators and lawmakers. Its 737 Max planes remain grounded.
This latest assessment was prompted by production issues at a Boeing 787 Dreamliner factory, according to the report. An internal FAA memo reviewed by the Journal showed Boeing notified regulators that it had produced parts that did not meet its own design and manufacturing standards.
As a result, the high-level FAA review could require enhanced or accelerated inspections for as many as roughly 900 of the approximately 1,000 Dreamliners delivered since 2011, according to the report.
Boeing told regulators a defect in the Dreamliners from the quality lapse wouldn’t pose an immediate safety risk, said the Journal article, and regulators aren’t planning immediate action. But in August, Boeing decided to voluntarily tell airlines to ground eight of the planes for immediate repairs due to the combination of that defect and a recently discovered assembly-line defect.
In a statement, a Boeing spokesperson said the company identified two separate manufacturing issues which, on their own, still met limit load conditions.
BA shares plunged $7.90, or 4.6%, to $163.15.
