From Fortune:

Boeing has faced serious challenges regarding the production and approval of its 737 MAX jets. The FAA announced a complete halt on any production increases and new regulatory approvals for additional MAX lines. Boeing’s airline customers are considering substituting A321 purchases for 737 Max 10 purchases. CEO Dave Calhoun must take concrete steps to revive Boeing’s safety culture.

Boeing has established heightened safety processes following the 2019 MAX crashes, including a special five-person Aerospace Safety Subcommittee of the Board. However, new quality control processes may not have permeated Boeing’s production plants. A whistleblower report claimed that Boeing’s own quality control systems were routinely ignored. Calhoun has appointed an external safety expert to review Boeing’s safety processes, in response to FAA pressure.

Boeing has lost functional oversight and control over its suppliers, exemplified by its dysfunctional relationship with Spirit AeroSystems, which manufactures virtually all of Boeing’s fuselages. Boeing engineers found 392 instances of Spirit quality control failures over the last year. Spirit employees were encouraged not to report problems amidst a culture of fear, intimidation, and cost-cutting. Spirit’s leadership ranks have almost completely turned over in the last four months amidst apparent pressure.

Calhoun has won plaudits for reassuring media interviews and all-staff meetings after the Alaska Air incident. But getting the MAX 9s back into the sky may have been the easy part. As the FAA digs in for protracted, intrusive oversight into Boeing’s internal process challenges in the months ahead, it will become progressively harder for Calhoun to control the narrative and continue fortifying public trust. Boeing will likely need to lower production and financial targets, and may need to withhold guidance during its highly anticipated earnings call. Rumors of internal reorganizations are also circulating.



Read more: Boeing CEO Dave Calhoun is on the hot seat. Here are 3 concrete steps he must take to restore the company’s credibility