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U.S. to inspect new 787 Dreamliners, says Boeing cannot self-certify -Breaking

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© Reuters. FILE PHOTO – The Boeing logo was pictured at Congonhas Airport, Sao Paulo (Brazil), August 14, 2018. REUTERS/Paulo Whitaker/File Photograph

Eric M. Johnson and David Shepardson

WASHINGTON (Reuters] -The U.S. Federal Aviation Administration announced Tuesday it would inspect all new Boeing 787 Dreamliner (NYSE:) aircraft and that the FAA will not permit the manufacturer to self-certify these planes.

The U.S. aviation regulator said it notified Boeing of the decision that it will retain the authority to issue airworthiness certificates until it is confident “Boeing’s quality control and manufacturing processes consistently produce 787s that meet FAA design standards.”

Boeing stated that it will “continue to work transparently (through the FAA’s detailed and rigorous process…We will continue to engage FAA to ensure they meet our expectations and comply with all requirements.”

Boeing stopped deliveries of its 787 aircraft in May, after concerns were raised by the FAA about the proposed inspection process. After issuing two directives on airworthiness to resolve production issues in in-service aircrafts, the FAA identified an additional issue in July.

Delivery of goods has been rescheduled while U.S. regulators review repairs and inspects. Delivery will remain suspended for at least six more months.

The FAA said it wants Boeing to ensure it “has a robust plan for the re-work that it must perform on a large volume of new 787s in storage” and that “Boeing’s delivery processes are stable.”

Peter DeFazio, Chair of House Transportation and Infrastructure Committee, praised FAA’s “important steps” to protect the aviation public. The committee is currently investigating production and manufacturing of the 787.

Boeing indicated that 787 production is at a very low rate and would gradually return to 5 per month.

Boeing revealed a $3.5B charge for delivery delays and customer concessions. Another $1 billion was charged in abnormal production costs related to manufacturing flaws.

Prior to the introduction of the Boeing 787, the FAA was able to issue certifications.

Boeing shares rose 3.7% Tuesday.

Boeing is unable to continue to manufacture 787s at once-planned rates due to factory modifications and other structural issues, according to a source familiar with the situation.

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