The Federal Aviation Administration said Wednesday that it is giving Boeing (NYSE:BA) 90 days to develop a comprehensive action plan to address its systemic quality-control issues.
The FAA expects the company to provide the FAA with a comprehensive action plan to meet FAA's "non-negotiable safety standards."
"Boeing must commit to real and profound improvements," FAA Administrator Mike Whitaker said following the meeting with Boeing chief executive officer and president Dave Calhoun and his senior safety team.
Furthermore, the plan must incorporate the upcoming results of the FAA production-line audit and the latest findings from the expert review panel report, as well as include the steps Boeing will take to mature its Safety Management System (SMS) program, the FAA said.
"Boeing must take a fresh look at every aspect of their quality-control process and ensure that safety is the company's guiding principle," administrator Whitaker added.
Boeing shares are up 2% on Wednesday.