FILE PHOTO: A Boeing 737 MAX aircraft is assembled at the company's plant in Renton, Washington, U.S. June 25, 2024. Jennifer Buchanan/Pool via REUTERS/File Photo

By David Shepardson

WASHINGTON (Reuters) -The Federal Aviation Administration will allow Boeing to issue airworthiness certificates for some 737 MAX and 787 airplanes starting next week after years of retaining the authority, the agency said.

The FAA revoked Boeing's right to approve individual MAX planes in 2019 after a second fatal MAX crash in Ethiopia and for Boeing 787 airplanes in 2022 due of production quality issues.

Boeing and the FAA will issue airworthiness certificates on alternating weeks starting Sept. 29, the FAA said, confirming a Reuters report. Boeing shares rose nearly 5% on the news.

The move will not lead to more deliveries but is a sign that the FAA recognizes Boeing has made progress in improving safety and quality efforts.

"The FAA will only allow this step forward because we are confident it can be done safely," the FAA said.

"This decision follows a thorough review of Boeing’s ongoing production quality and will allow our inspectors to focus additional surveillance in the production process. The FAA will continue to maintain direct and rigorous oversight of Boeing's production processes."

Boeing did not immediately comment.

The FAA imposed a production cap of 38 737 MAX planes per month in early 2024 after a mid-air cabin blowout incident involving a new Alaska Airlines MAX airplane missing four bolts.

The FAA said on Friday that Boeing had not sought a rate increase but if they do "onsite FAA safety inspectors will conduct extensive planning and reviews with Boeing to determine if they can safely produce more airplanes."

FAA Administrator Bryan Bedford told Reuters this month that any change would be guided by the recommendations of front-line FAA inspectors.

Earlier this month, the FAA proposed a $3.1 million fine against Boeing for a series of safety violations.

The FAA said it found hundreds of quality system violations at the planemaker's 737 factory in Renton, Washington, and the 737 fuselage factory of Boeing subcontractor Spirit AeroSystems in Wichita, Kansas, from September 2023 through February 2024.

The FAA also has said Boeing presented two unairworthy aircraft to the agency for approval.

The Alaska Airlines incident prompted the U.S. Justice Department under then U.S. President Joe Biden to open a criminal investigation and declare that Boeing was not in compliance with a 2021 deferred prosecution agreement made after the company had misled the FAA during the 737 MAX regulatory certification process.

(Reporting by David Shepardsoin in Washington and Shivansh Tiwary in Bengaluru; editing by Anil D'Silva, Tasim Zahid, Chizu Nomiyama and Jason Neely)