Adds Boeing declining comment, more comments from USDOT

By David Shepardson

WASHINGTON, March 14 (Reuters) - U.S. planemaker Boeing BA.N lost its way and trust of the American people after a January 2024 mid-air emergency involving a new Boeing 737 MAX and two fatal crashes in 2018 and 2019, Transportation Secretary Sean Duffy said in a Fox News broadcast on Friday.

Duffy also said the Federal Aviation Administration is not yet ready to lift a 38-plane per month production cap on the 737 MAX.

"When you breach the trust of the American people with that safety and with your manufacturing, we're going to put the screws to you to make sure you change your ways and start doing things right," Duffy told Fox News after a visit on Thursday to the Boeing 737 factory in Renton, Washington.

Boeing did not immediately comment.

Duffy traveled to Washington and met with Boeing CEO Kelly Ortberg, along with acting FAA Administrator Chris Rocheleau, following last year's mid-air panel blowout on a new Alaska Airlines ALK.N 737 MAX 9 airplane that was missing four key bolts . Ortberg will testify April 2 before Congress .

"They've lost trust," Duffy said. "They have to take a look at how they're manufacturing. They have to look at their quality. They have to get it up to a place where the FAA and the American people and the airlines feel like they're producing incredibly safe airplanes."

Duffy noted that Boeing has new leadership .

"They are making efforts and strides to bring quality back to their aircraft," he said.

Duffy announced the factory visit on the sixth anniversary of the crash of Ethiopian Airlines flight 302 that killed all 157 people on board and led to changes in the 737 MAX's design and pilot training.

In January 2024, former President Joe Biden's FAA Administrator Mike Whitaker imposed a 38-plane monthly production cap after the Alaska Airlines ALK.N 737 MAX incident.

Duffy noted Boeing is not currently close to producing 38 MAX planes per month. Once they make quality improvements "we have to take a risk on them," Duffy said and lift the cap, but "we're not there yet."

Duffy said President Donald Trump does not want USDOT to take risks with safety but "wants us to not be too restrictive. He wants us to be smart and loosen up the restrictions on production with Boeing when it's appropriate."

Boeing in July agreed to plead guilty to a criminal fraud conspiracy charge and pay at least $243.6 million after breaching a 2021 deferred prosecution agreement. The Justice Department said Boeing allowed potentially risky work at its factories and did not ensure key airplane record-keeping was accurate.

(Reporting by David ShepardsonEditing by Marguerita Choy)

((David.Shepardson@thomsonreuters.com; 2028988324;))