US says FAA oversight of Boeing production 'not effective'

By David Shepardson

WASHINGTON (Reuters) -A federal watchdog on Friday criticized the Federal Aviation Administration's oversight of Boeing airplane production, saying it does not have an effective system to oversee the planemaker's individual manufacturing facilities.

The Transportation Department's Office of Inspector General said in a report the FAA's current audit processes "are not comprehensive enough to adequately identify key discrepancies and noncompliances within the Boeing production line" and said the FAA has not addressed longstanding weaknesses in Boeing’s oversight of suppliers despite long-known risks.

The FAA's oversight of Boeing has gotten new scrutiny after a door plug missing key bolts blew off a new Alaska Airlines 737 MAX 9 jet at 16,000 feet in January, prompting the Justice Department to open a criminal investigation.

The report issued 16 recommendations. The FAA said it agrees with all of them and "is committed to continuously improving our oversight processes." The FAA added it "is currently conducting a comprehensive, systemwide review of our oversight models."

The report said the FAA has not been able to resolve allegations of undue pressure on Boeing employees acting on FAA’s behalf in a timely fashion because it has not enforced requirements that Boeing provide sufficient information on the allegations.

Boeing did not immediately comment.

The report that reviewed oversight of the Boeing 737 and 787 said the FAA "has yet to move from a reactive approach focused on addressing individual manufacturing issues to a more proactive, data-driven model to identify and address risk within Boeing’s manufacturing processes at all levels."

A series of reports in recent years have raised concerns about the FAA's oversight of Boeing. Last month, a U.S. Senate panel investigating Boeing's culture faulted oversight by the Federal Aviation Administration citing documents obtained in an ongoing investigation.

FAA Administrator Mike Whitaker said last month he will revamp its own safety management program. He said previously the agency was "too hands off" in oversight of Boeing before January. He took the unprecedented step in January of barring Boeing from expanding 737 MAX production until he satisfied they have made significant quality improvements.

(Reporting by David Shepardson, Editing by Nick Zieminski)