MRO & Manufacturing
FAA Conducts Tabletop Exercises to Assess Boeing 737 MAX Production Increase
FAA plans scenario-based exercises with Boeing to evaluate lifting the 737 MAX production cap amid safety and quality reforms.
The Federal Aviation Administration’s (FAA) recent announcement regarding planned tabletop exercises with Boeing marks a decisive moment in the aerospace sector’s ongoing efforts to restore confidence and operational normalcy following the Boeing 737 MAX crisis. This initiative signals the FAA’s commitment to a methodical, risk-informed approach before considering the removal of the current 38-aircraft-per-month production cap imposed on Boeing’s 737 MAX line. The cap, introduced in response to persistent safety and quality control concerns, has shaped Boeing’s operational and financial landscape since early 2024. The upcoming exercises, scheduled for completion by the end of September 2025, are designed to rigorously assess Boeing’s readiness for increased production and sustained regulatory compliance.
This development comes at a time when Boeing has only recently stabilized its monthly output at the regulatory ceiling, following a period of underperformance and heightened scrutiny. The FAA’s scenario-based planning approach aims to ensure that any future ramp-up is underpinned by robust safety management systems, mature operational processes, and a fundamentally improved corporate culture. The outcome of these exercises will have far-reaching implications, not only for Boeing’s financial recovery and competitive standing, but also for the future of regulatory oversight and risk management in the global aviation industry.
The trajectory of the Boeing 737 MAX, from its initial promise as a market leader to its grounding and subsequent regulatory overhaul, is rooted in a series of critical design and management decisions. The MAX was Boeing’s answer to the Airbus A320neo, intended to preserve its dominance in the narrow-body jet market. The decision to integrate larger, more efficient engines onto the 737 airframe necessitated the introduction of the Maneuvering Characteristics Augmentation System (MCAS), a software solution that ultimately played a pivotal role in two fatal accidents.
The first tragedy, Lion Air Flight 610 in October 2018, was followed by Ethiopian Airlines Flight 302 in March 2019. Both accidents were linked to erroneous MCAS activation due to faulty angle-of-attack sensor data, resulting in the loss of 346 lives. Investigations revealed that Boeing had not only omitted critical information about MCAS from pilot manuals but also prioritized rapid certification and production schedules over comprehensive safety validation. These revelations exposed deep-seated issues in Boeing’s safety culture and its relationship with the FAA, which relied heavily on delegated self-certification processes at the time.
The global grounding of the 737 MAX fleet in March 2019 was unprecedented, lasting 20 months and costing Boeing an estimated $20 billion in direct costs, with indirect losses surpassing $60 billion. More importantly, the crisis prompted a comprehensive re-examination of aircraft certification, manufacturing oversight, and the balance between commercial pressures and public safety.
In the aftermath, the FAA shifted from a model of trust-based oversight to one of direct, continuous engagement. The Alaska Airlines Flight 1282 incident in January 2024, where a door plug separated from a 737 MAX during flight, reignited concerns about Boeing’s quality control and led the FAA to impose a strict production cap of 38 aircraft per month. The agency now requires direct inspection of every newly manufactured 737 MAX and 787 aircraft before issuing airworthiness certificates, a level of scrutiny seldom seen in modern commercial aviation.
This cap is not merely a symbolic gesture; it has tangible operational and financial consequences for Boeing, its suppliers, and the broader industry. The FAA’s approach is characterized by phased oversight, weekly executive reviews, and deployment of subject matter experts to audit Boeing’s production lines. The regulator’s stance is clear: only sustained evidence of cultural and operational change will justify any easing of restrictions.
Boeing’s recent ability to meet the 38-unit cap, after producing only 35 units in June 2025, is viewed as a positive but insufficient milestone. The company’s ambitions to incrementally increase production remain contingent on FAA approval, which in turn depends on the outcomes of the planned tabletop exercises and ongoing supply chain reviews. “We agreed that it would make sense to start to develop the process by which we would entertain a rate increase conversation.” — FAA Administrator Bryan Bedford
The FAA’s decision to conduct tabletop exercises with Boeing marks a significant evolution in regulatory risk management. Unlike traditional compliance checks, these exercises are scenario-based planning sessions designed to test Boeing’s organizational response to a spectrum of operational challenges, ranging from supply chain disruptions and quality control failures to crisis communication and decision-making under pressure.
These exercises represent a collaborative approach that acknowledges the interconnectedness of regulatory oversight, manufacturing capability, and safety culture. They are intended to probe not just Boeing’s technical readiness, but also its ability to maintain robust safety standards in the face of unexpected challenges. The exercises will likely involve simulated incidents across the supply chain, including critical suppliers such as Spirit AeroSystems, whose manufacturing deficiencies contributed to the Alaska Airlines door plug incident.
The FAA has made clear that Boeing has not yet formally requested a production rate increase, and that approval will only be considered after successful completion of these exercises. The agency’s emphasis is on establishing clear protocols and evaluation criteria before any modification to the current production restrictions. This methodical approach is designed to ensure that any ramp-up is sustainable and does not compromise safety.
Boeing’s efforts to address the systemic issues highlighted by the MAX crisis and subsequent incidents have been extensive. The company has launched over 1,300 Employee Involvement Teams, digitized training programs, and implemented RFID tracking systems to enhance component traceability. These initiatives are aimed at fostering a more transparent and accountable safety culture, empowering frontline workers to identify and escalate safety concerns, and ensuring rigorous documentation throughout the manufacturing process.
The National Transportation Safety Board (NTSB) cited “inadequate training, guidance and oversight” as a contributing factor in the Alaska Airlines door plug blowout, underscoring the need for comprehensive workforce preparation and clear maintenance protocols. Boeing’s revamped training programs and enhanced supplier oversight are designed to address these gaps, with a focus on preventing communication and documentation failures that have previously led to safety lapses.
Regulatory authorities, including the FAA, are closely monitoring these efforts. The agency has indicated that evidence of sustained cultural change and operational excellence, not just technical compliance, will be required before considering any increase in production rates. This holistic evaluation extends to Boeing’s relationships with its suppliers and the effectiveness of new inspection and quality control protocols implemented across the supply chain.
The production cap has significant financial ramifications for Boeing and its extensive network of suppliers. With an estimated direct cost of $20 billion from the MAX groundings and indirect losses exceeding $60 billion, Boeing’s recovery is tightly linked to its ability to increase output and restore profitability. The cap restricts Boeing’s revenue generation, particularly given its large order backlog, nearly 6,000 aircraft as of mid-2025, representing over a decade of production at current rates.
Boeing’s delivery performance has shown gradual improvement, but remains below historical peaks and current market demand. The company’s competitive position vis-à-vis Airbus has been weakened, with Airbus surpassing Boeing in revenue and market share during the MAX grounding period. However, Boeing’s strong order book and recent new orders suggest that customer confidence is returning, contingent on the company’s ability to demonstrate sustained safety and reliability. The broader aerospace supply chain, including key suppliers like Spirit AeroSystems, has been affected by production volatility and regulatory scrutiny. Disruptions have cascaded through the industry, impacting production capacity, cost structures, and supplier financial stability. Boeing’s efforts to enhance supplier oversight and inspection protocols are critical not only for regulatory compliance, but also for maintaining the health of the entire aerospace ecosystem.
“The FAA’s intensive oversight model, including requirements for individual aircraft inspections and comprehensive supply chain reviews, may become the new baseline for high-risk manufacturing sectors.”
Industry observers generally support the FAA’s cautious, scenario-based approach, viewing it as a necessary evolution in regulatory oversight. Analysts have highlighted the potential for these exercises to set new standards for manufacturer-regulator collaboration, emphasizing that sustainable recovery requires more than technical fixes, it demands genuine cultural transformation and resilient operational systems.
Financial experts point to the completion of tabletop exercises as a pivotal milestone for Boeing’s stock and broader financial recovery. Successful outcomes could trigger investor optimism, margin improvements, and renewed market confidence. Conversely, any setbacks or failures could prolong regulatory restrictions and delay Boeing’s return to pre-crisis production levels.
Pilot organizations and aviation safety advocates continue to stress the importance of rigorous oversight and transparent communication, arguing that public and crew confidence must be rebuilt through demonstrated performance, not just regulatory approvals. International regulators are also watching closely, with many indicating that their own certification decisions will be based on independent assessments of Boeing’s progress.
The FAA’s planned tabletop exercises with Boeing represent a sophisticated, risk-based approach to regulatory oversight that reflects the complex realities of modern aircraft manufacturing. This initiative is not simply a hurdle for Boeing to clear; it is a comprehensive test of whether the company’s safety culture, operational systems, and supply chain management have evolved sufficiently to support a safe and sustainable increase in production.
The stakes extend beyond Boeing’s immediate financial prospects to encompass broader questions about industry competitiveness, regulatory innovation, and the global management of technological risk. The successful completion of these exercises, and any subsequent lifting of the production cap, will serve as a critical indicator of Boeing’s rehabilitation and the effectiveness of new regulatory paradigms in ensuring public safety. The lessons learned will resonate across the aviation sector and beyond, shaping future approaches to risk, safety, and corporate accountability.
What are the FAA’s tabletop exercises with Boeing? Why was the 737 MAX production cap imposed? What changes has Boeing made since the 737 MAX crisis? How does the production cap affect Boeing financially? What is the industry significance of these regulatory changes? Sources:
FAA’s Strategic Tabletop Exercises: A Critical Juncture for Boeing 737 MAX Production Recovery
Historical Context and the Genesis of Crisis
Regulatory Response and the Production Cap
The Tabletop Exercises Initiative
Boeing’s Safety Culture Transformation
Financial and Industry Implications
Expert Perspectives and Industry Analysis
Conclusion
FAQ
These are scenario-based planning sessions designed to test Boeing’s response to various operational and safety challenges before the FAA considers lifting the current production cap on the 737 MAX.
The cap was introduced after ongoing safety and quality control concerns, most notably following the Alaska Airlines Flight 1282 door plug incident, to ensure that Boeing addresses systemic issues before increasing output.
Boeing has implemented extensive safety culture reforms, including employee involvement teams, digitized training, RFID tracking for components, and enhanced supplier oversight, aiming to address both technical and organizational shortcomings.
The cap limits Boeing’s ability to deliver aircraft and generate revenue, impacting its financial recovery and its suppliers throughout the aerospace supply chain.
The FAA’s approach could set new standards for regulatory oversight in high-risk manufacturing sectors, emphasizing continuous, scenario-based risk management over traditional compliance models.
Reuters
Photo Credit: Reuters
MRO & Manufacturing
Boeing Deploys AI Tool to Automate Aircraft Part Validation Processes
Boeing introduces AI-driven OCR technology to streamline aircraft part inspection, reducing manual entry and saving over 17 hours per airplane.
Boeing has introduced a new artificial intelligence tool designed to automate the inspection and logging of aircraft parts, a move the manufacturer states has significantly reduced production time and improved data accuracy. Developed by engineers at the Boeing Korea Engineering & Technology Center (BKETC), the system utilizes Optical Character Recognition (OCR) to replace manual data entry during the assembly process.
According to the company, the new technology allows quality inspectors to validate components simply by photographing them. This innovation addresses a longstanding bottleneck in the manufacturing workflow, reportedly saving more than 17 hours of inspection time per airplane.
Prior to the implementation of this AI solution, quality inspectors were required to manually input complex serial numbers into the Aircraft Readiness Log (ARL). This process was not only time-consuming but also susceptible to human error, often referred to in the industry as “fat-finger” typos.
Boeing data indicates that before the tool’s deployment, approximately 70% of part serial numbers on the 737 program had to be entered manually. The repetitive nature of typing long strings of alphanumeric characters created a high potential for inaccuracies, which could disrupt the “digital thread”, the continuous digital record of an aircraft’s components and history.
The new handheld tool leverages computer vision to streamline the validation process. The workflow, as described in Boeing’s report, involves three primary steps:
To ensure the system could handle the variety of fonts, formats, and lighting conditions found on a factory floor, the development team undertook an extensive training process. Engineers captured over 2,250 images of various parts and manually labeled nearly 38,100 text boxes to train the machine learning model. Currently, the tool is capable of inspecting more than 1,400 different parts.
The project was a collaborative effort led by the Boeing Korea Engineering & Technology Center (BKETC) in partnership with the company’s central Artificial Intelligence team. The involvement of the Korea-based team highlights Boeing’s strategy of leveraging global engineering talent to solve specific production challenges.
“Quality inspectors identified the challenges in their current process and guided our design. Their insights guided us through the development journey and helped minimize disruption to existing workflows.”
, Wanbin Song, Boeing AI Team Lead at BKETC
The tool was first deployed in January 2024 at Boeing’s primary manufacturing sites in Renton and Everett, Washington, which produce the 737 and widebody jets respectively. Following its success in these facilities, Boeing plans to expand the technology to its South Carolina facility for 787 Dreamliner production. The team is also evaluating other areas of the production system where this OCR capability could further streamline documentation. The deployment of this OCR tool represents a practical application of “Smart Factory” principles, moving beyond buzzwords to address tangible production inefficiencies. In aerospace manufacturing, the integrity of the “digital thread” is paramount; the physical aircraft must perfectly match its digital records for safety, maintenance, and regulatory compliance.
By automating the entry of serial numbers, Boeing is reducing the cognitive load on inspectors and closing a gap where human error frequently occurs. While a saving of 17 hours per aircraft may seem minor in the context of a multi-month build cycle, these incremental efficiency gains are critical as the manufacturer seeks to stabilize production rates and ensure rigorous quality control across its assembly lines.
What is the primary benefit of the new AI tool? Who developed the technology? Where is the tool currently used?
Boeing Deploys Photo-Driven AI to Streamline Aircraft Part Validation
Eliminating the “Fat-Finger” Factor
How the Technology Works
Development and Deployment
AirPro News Analysis
Frequently Asked Questions
The tool eliminates manual data entry errors and reduces inspection time by over 17 hours per aircraft.
The tool was developed by the Boeing Korea Engineering & Technology Center (BKETC) and the Boeing AI team.
It was deployed in Renton and Everett, Washington, in January 2024, with plans to expand to Boeing South Carolina.
Sources
Photo Credit: Boeing
MRO & Manufacturing
Safran to Sell In-Flight Entertainment Division to Kingswood Capital
Safran agrees to sell its in-flight entertainment division SPI to Kingswood Capital, with completion expected by Q1 2026 and leadership retention planned.
French aerospace giant Safran has announced a definitive agreement to sell its in-flight entertainment and connectivity (IFEC) division, Safran Passenger Innovations (SPI), to Kingswood Capital Management, LP. The transaction, announced on December 10, 2025, marks a significant shift in Safran’s portfolio strategy as it continues to divest non-core assets acquired during its purchase of Zodiac Aerospace.
According to the official announcement, the sale is expected to close by the end of the first quarter of 2026, subject to customary regulatory approvals. While the financial terms of the deal were not publicly disclosed, Safran confirmed that SPI generates approximately $460 million in annual revenue.
The agreement transfers ownership of SPI, a California-based leader in in-flight entertainment systems, to Kingswood Capital Management, a Los Angeles-based private equity firm. Kingswood specializes in corporate carve-outs and operational transitions, making this acquisition a strategic fit for their portfolio.
For Safran, this move represents a continuation of its strategy to streamline operations and focus on its core competencies in propulsion and Commercial-Aircraft equipment. SPI, formerly known as Zodiac Inflight Innovations, was part of the Zodiac Aerospace acquisition in 2018. Since that merger, Safran has systematically reviewed its holdings to identify assets that operate outside its primary industrial focus.
In the company’s press statement, Safran indicated that the sale allows the group to concentrate resources on its strategic priorities while placing SPI under ownership that is specifically dedicated to growing the business as a standalone entity.
Kingswood Capital Management described the acquisition as its “second aerospace and defense investment,” signaling a growing interest in the sector. The firm plans to leverage its capital and operational expertise to accelerate SPI’s product development and market expansion.
“We look forward to partnering with the SPI management team to support the company’s next phase of growth and innovation as a standalone business.”
, Statement attributed to Kingswood Capital Management
A critical component of the agreement is the retention of SPI’s current leadership and workforce. The division employs approximately 740 people, primarily located at its headquarters in Brea, California, and its operations center in Wessling, Germany. According to the release, CEO Matt Smith and the existing management team will remain in place following the acquisition. This continuity is intended to ensure stability for SPI’s Airlines customers, which include major global carriers such as Lufthansa, ANA, Etihad, and China Southern.
SPI is best known for its RAVE (Reliable, Affordable, and Very Easy) product line. The RAVE system includes seatback in-flight entertainment screens and connectivity hardware that supports various satellite networks. As a standalone company under Kingswood, SPI aims to compete more agilely in the IFEC market against rivals like Panasonic Avionics and Thales InFlyt Experience.
The sale of Safran Passenger Innovations highlights a broader trend in the aerospace supply chain: the “unwinding” of massive conglomerates into more specialized entities. When Safran acquired Zodiac Aerospace in 2018, it absorbed a vast array of cabin interior businesses. While some, like seats, integrated well, the high-tech, consumer-facing nature of in-flight entertainment (IFE) often requires a different investment cycle and agility than engine manufacturing.
By moving to private equity ownership, SPI may gain the flexibility to pivot faster in a post-pandemic market where passengers demand 4K screens and high-speed Wi-Fi. For Kingswood, the challenge will be managing a tech-heavy portfolio company in a capital-intensive industry, but the retention of the original leadership team suggests a strategy of stability rather than radical restructuring.
When will the transaction be finalized? Will the leadership team change? What is the revenue of the division being sold?
Safran Agrees to Sell In-Flight Entertainment Division to Kingswood Capital Management
Transaction Overview and Strategic Rationale
Safran’s Divestment Strategy
Kingswood’s Aerospace Expansion
Impact on Operations and Leadership
The RAVE Product Line
AirPro News Analysis
Frequently Asked Questions
The deal is expected to close by the end of Q1 2026, pending regulatory approvals.
No. CEO Matt Smith and the current leadership team will continue to lead the company.
Safran Passenger Innovations generates approximately $460 million in annual revenue.
Sources
Photo Credit: Safran
MRO & Manufacturing
Airinmar Extends Aircraft Warranty Services Contract with Air Methods
Airinmar signs a multi-year extension with Air Methods to manage aircraft warranty and value engineering services for its 450+ fleet.
This article is based on an official press release from Airinmar.
Airinmar, a subsidiary of AAR CORP. (NYSE: AIR), has officially signed a multi-year extension to provide aircraft warranty management and value engineering services to Air Methods, one of the largest civilian helicopters operators in the world. According to the company’s announcement, this agreement prolongs a partnership that originally began in August 2020, reinforcing a strategic focus on cost efficiency and supply chain optimization.
The extended contract covers a massive fleet of over 450 helicopters and fixed-wing aircraft used primarily for emergency air medical transport. Under the terms of the agreement, Airinmar will continue to manage warranty entitlements, identifying, claiming, and recovering costs from manufacturers, while also providing value engineering support to ensure maintenance expenses remain aligned with fair market values.
The renewal highlights the increasing importance of outsourced technical management in the aviation sector. Airinmar’s role involves a comprehensive review of component repairs and warranty opportunities. By leveraging historical data and engineering expertise, the company aims to reduce the total cost of ownership for Air Methods’ diverse fleet.
According to the press release, the services provided include:
Jay Mahen, Senior Vice President of Operations at Air Methods, emphasized the importance of this partnership in maintaining operational readiness for their critical missions.
“We will continue to leverage Airinmar’s comprehensive engineering knowledge and expertise to help optimize our supply chain to provide safe and reliable lifesaving emergency air medical care.”
Jay Mahen, SVP of Operations, Air Methods
While the press release focuses on the continuation of services, the timing of this extension is significant when viewed against the broader financial backdrop of Air Methods. As reported in public financial disclosures, Air Methods successfully emerged from Chapter 11 bankruptcy in late December 2023, shedding approximately $1.7 billion in debt. The company is currently navigating a “transformation journey” under new ownership, with a sharp focus on operational efficiency and profitability.
In our view, extending a contract with a specialist like Airinmar aligns perfectly with this post-restructuring strategy. For large fleet operators, the administrative burden of tracking warranties across thousands of components can be overwhelming. Outsourcing this function allows Air Methods to recover funds that might otherwise be lost to administrative oversight, directly improving the bottom line without compromising safety. Furthermore, the aviation maintenance (MRO) sector is currently facing inflationary pressures and supply chain constraints. By utilizing “value engineering,” operators can scrutinize third-party vendor quotes more effectively, ensuring they are not paying inflated prices for parts or labor, a critical capability for maintaining an aging fleet of 450 aircraft.
Airinmar has operated for over 40 years and is a global leader in component repair cycle management. Based in Berkshire, England, it was acquired by AAR CORP., a major provider of aviation services to commercial and government customers worldwide. AAR CORP. recently reported record sales of $2.8 billion for Fiscal Year 2025, driven largely by demand for aftermarket solutions.
Air Methods is the leading air medical service provider in the United States. Operating from approximately 275 bases across 47 states, the company delivers lifesaving care to more than 100,000 people annually, functioning essentially as a “flying ICU.”
Value engineering in this context refers to the analysis of repair costs and methods to improve value. It involves verifying that repair quotes align with market rates, determining whether a component should be repaired or replaced based on reliability and cost, and ensuring that repair shops do not perform unnecessary work.
According to the press release and company data, Air Methods operates a fleet of over 450 helicopters and fixed-wing aircraft.
The original agreement was signed in August 2020. This recent announcement marks a multi-year extension of that initial contract.
Airinmar Secures Multi-Year Service Extension with Air Methods
Scope of Services and Operational Impact
Warranty Management and Value Engineering
Strategic Context: Efficiency in a Post-Restructuring Era
AirPro News Analysis
About the Companies
Frequently Asked Questions
What is “Value Engineering” in aviation maintenance?
How large is the Air Methods fleet?
When did the partnership between Airinmar and Air Methods begin?
Sources
Photo Credit: AAR Corp.
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