New Delhi

The US Federal Aviation Administration (FAA) has imposed a freeze on Boeing's plan to expand production of its 737 MAX narrowbody planes, citing "unacceptable" quality issues, Reuters reported.

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This decision comes as a blow to Boeing's efforts to meet the rising demand for its best-selling aircraft.

Simultaneously, the FAA has granted approval for the grounded 737 MAX 9 to resume flying once inspections are completed, offering relief to operators Alaska Airlines and United Airlines, which had faced numerous flight cancellations.

"We will not agree to any request from Boeing for an expansion in production or approve additional production lines for the 737 MAX until we are satisfied that the quality control issues uncovered during this process are resolved," Reuters quoted FAA Administrator Mike Whitaker as saying.

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While Boeing can continue producing at the current monthly rate, any increase is currently barred. Boeing responded by stating it would cooperate fully with the FAA and take action to strengthen safety and quality. The FAA did not provide an estimate of how long the production limitation would last.

Boeing had plans to ramp up production, with CEO Dave Calhoun aiming for 38 MAX planes per month by the end of 2023. The FAA's decision challenges Boeing's latest 737 master schedule, which proposes increasing production to 42 jets per month in February, eventually reaching 57.7 in October 2025.

The freeze could also impact the establishment of a new 737 MAX line in Everett, Washington, by mid-2024. Industry experts express concerns that the scrutiny following recent incidents could hamper production increases, potentially affecting Boeing's competition with Airbus.

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The FAA's intervention signifies a significant shift in its oversight approach. Analysts suggest that the halt on expansion appears "restrictive" and lacks a definitive timeline. The potential impact on airlines, particularly those with significant MAX deliveries scheduled for the year, is a cause for concern.

United, for instance, has 100 MAX deliveries scheduled for this year. Boeing shares experienced a 2 per cent decline in after-hours trading following the FAA's announcement.

(With inputs from Reuters)