FAA Makes Shocking Pivot to Let Boeing Police Itself Again W/ Restriction Lifts ("We’re In Danger”)

“I’m in danger…” - me next week when I fly on a Boeing 737 for a work trip 

After years of being the parole officer for the 737 MAX and 787, the FAA is finally handing Boeing the clipboard again. Translation: starting next week, Boeing can certify some of its own planes instead of waiting for the feds to sign off. “Oh God… no” - literally me after reading the headlines. But, but, bu… don’t you worry, because alternate weeks will still be FAA-checked… so at least we’ll still have some level of safeguards against Boeing’s production shenanigans. #fingerscrossed. 

(Source: Giphy) 

In short, this move comes after that Alaska Airlines incident where a MAX quite literally lost a door mid-air because someone forgot to bolt it on (and a laundry list of other Boeing catastrophes). Because of this, the production cap has been locked at 38 planes per month ever since. Now Boeing wants to push back to 42, then eventually 47, because apparently “eh, close enough” is back on the quality checklist.

(Source: Reuters) 

Additionally, the FAA easing up hits the same day Boeing landed a stack of massive new orders. For instance, Norwegian is back on the hook for 30 new 737s. Turkish Airlines dropped an order that could exceed $22B,,, 75 Dreamliners plus up to 150 more MAXes. Even Uzbekistan signed an $8B deal for 22 787s after a quick White House photo-op with Trump. Meaning, it begs the question… is the FAA really seeing a shift in Boeing's production? Or… was there a bit of handwringing done because someone (read: the Swamp) smelled “opportunity”?. Who knows…

But even if that were the case, it’s clear that Boeing’s business is too important to actually strangle. Planes have to fly, airlines have to buy, and Uncle Sam can only posture for so long before realizing he can’t ground half the global fleet. Naturally, investors were 100% here for it as the stock ripped the second the news hit with shares closing up +3.62% on Friday. 

(Source: Giphy) 

With that said, let me be the Debbie Downer here. If you think Boeing’s quality problems are fixed, I have a bridge to sell you. But the market doesn’t care. Orders are orders. And with the Saudis, Turks, and every budget airline on Earth still cutting checks, the game plan simply comes down to: slap the bolts on tighter this time, smile for the cameras, and keep the assembly line running. What’s the worst that can happen? Until next time, friends…

At the time of publishing, Stocks.News does not hold position in companies mentioned in the article.