The Federal Aviation Administration is developing scenario-based “tabletop” exercises with Boeing as a pre-condition for lifting the regulator’s cap that limits 737 MAX output to 38 aircraft a month, FAA Administrator Bryan Bedford said in an interview. Bedford noted that Boeing has not yet asked the agency to approve a higher production rate but agreed that advance planning is needed so the FAA can evaluate any future request. The tabletop drills are expected to be completed by the end of September and will examine potential quality-control and supply-chain challenges that could arise from a faster build rate. The FAA imposed the production ceiling after a January 2024 mid-air blowout on an Alaska Airlines 737 MAX 9 and has since maintained heightened oversight of Boeing’s factories. Bedford said he is “cautiously optimistic” about improvements the planemaker has made following an August visit to its Renton, Washington, assembly line, but added that some outstanding quality issues remain. Separately, talks between Boeing’s defense division and the International Association of Machinists have broken off, with the union saying negotiations are unlikely to resume this week. Machinists at Boeing’s St. Louis-area plants have been on strike since early August, seeking higher pay and benefit improvements.