It has been a busy fortnight for Boeing. The Original Equipment Manufacturer is making progress on two fronts that are critical to its commercial aviation business. On the one hand, Boeing has opened its new 737 North Line assembly facility in Everett, Washington, representing a USD 1 billion investment in expanding production capacity. On the other hand, the US Federal Aviation Administration (FAA) has restored Boeing’s authority to issue airworthiness certificates for new 737 MAX and 787 aircraft, reversing restrictions that had been in place for years following multiple safety and quality concerns.
Taken together, these developments signal that Boeing is slowly emerging from one of the most difficult periods in its history, although the road back to full production remains gradual.
Boeing opens its new 737 North Line
So far, Boeing has had two manufacturing sites in the state of Washington in the US. The Everett site was the assembly site for large jets such as the 787, 747, and 777, and everything in between. Renton, on the other hand, was the assembly line for the Boeing 737 and the various variants. However, with Boeing 787 production now consolidated at the Charleston site in South Carolina, Boeing had a lot of empty space at Everett, which has now been consolidated for Boeing 737 production there as well.
Boeing has officially opened the North Line, a brand-new 737 assembly line located at its Everett facility. The line represents a USD 1 billion investment in manufacturing infrastructure and is designed to support the company’s long-term plans to increase production of the Boeing 737 family.
Everett Factory 737 North Line Media Tour – July 8, 2026.
Historically, all 737 aircraft have been assembled at Boeing’s Renton factory. The North Line becomes the fourth production line dedicated to the aircraft and is expected to provide additional flexibility as Boeing works to meet an order backlog running into several thousand aircraft (over 4700 at the time of publication). The first 737 moving through the line is a 737 MAX 10. Boeing did not publicly identify the customer for that aeroplane.
Unlike the traditional moving assembly line used at Renton, the North Line incorporates several new manufacturing concepts intended to simplify production, improve ergonomics for workers and make it easier to integrate automation where appropriate. Boeing says the facility was designed after learning from previous production challenges and incorporates significant investments in digital manufacturing tools and modern factory layouts.
For airlines waiting on deliveries, this additional capacity could eventually help shorten delivery timelines, although the line will ramp up gradually over the coming months. The current production rate for the 737 that Boeing is aiming for is 47 airframes per month, with the next target being 52.
FAA restores Boeing’s certification authority
Perhaps the more consequential announcement came from the FAA. Beginning next week, Boeing will once again be permitted to issue airworthiness certificates for all newly built 737 MAX and 787 Dreamliner aircraft under FAA oversight. These certificates are the final regulatory approval required before an aircraft can be delivered to an airline and enter commercial service. This was first reported by Reuters.
The authority had been removed following the second fatal 737 MAX accident in 2019, when regulators significantly tightened oversight of Boeing’s certification processes. Similar restrictions were imposed on the 787 Dreamliner in 2022 following manufacturing quality issues.
Over the past several months, Boeing and the FAA have been alternating responsibility for issuing these certificates while regulators evaluated whether Boeing’s internal quality systems had improved. According to the FAA, data collected during this period showed comparable results regardless of whether Boeing or FAA inspectors performed the certification work, giving the regulator confidence to restore the authority.
Importantly, this does not mean the FAA is stepping away from oversight. The regulator has made it clear that inspections, audits and production monitoring will continue, even as Boeing regains responsibility for the final paperwork associated with aircraft deliveries.
Production ramp-up gathers pace
The decision also comes as Boeing prepares to further increase 737 MAX production.
Following the Alaska Airlines door-plug incident in January 2024, the FAA had imposed strict production limits on Boeing’s narrowbody programme. Those restrictions have gradually eased over the past year, with the production cap first increasing from 38 to 42 aircraft per month, while the FAA has also backed Boeing’s plans to move towards 47 aircraft per month if production quality continues to meet expectations.
The regulator also indicated recently that certification of the long-delayed 737 MAX 7 is expected later this summer, while the larger MAX 10 could receive approval before the end of the year. Both variants have faced years of delays, primarily due to certification issues.
Bottomline
Boeing is still far from fully putting its troubles behind it, but the past week has offered tangible evidence that the company is rebuilding confidence with regulators. The opening of the new North Line demonstrates Boeing’s willingness to invest for the long term, while the FAA’s decision to restore certification authority reflects growing confidence in the manufacturer’s production quality.
For airlines around the world waiting for new aircraft—including several Indian carriers with substantial Boeing order books—these are encouraging developments. The challenge now will be for Boeing to translate these regulatory wins into consistently higher production rates while ensuring that quality remains front and centre.
What do you think is going to be the eventual rate at which Boeing wants to settle for the production of the 737 MAX?
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