Boeing 737 Production Plan Hits: Boeing (BA.N) has conveyed to suppliers that its plans to accelerate production of the popular 737 narrowbody jetliner will face a delay of approximately two months, insiders familiar with the matter revealed.
The revised master schedule shared with suppliers outlines Boeing’s new timeline, anticipating the production of 42 737s per month starting in February 2024. The adjustment is seen as a response to supply chain challenges and production disruptions that both Boeing and its European counterpart Airbus (AIR.PA) have grappled with, hampering their ambitious plans to meet heightened customer demand.
Analysts had anticipated a shift in Boeing’s production schedule, particularly after a supplier error impacted ramp-up plans earlier in the year. The updated schedule not only postpones the goal of reaching 42 jets per month from December 2023 to February 2024 but also delays subsequent rate increases. The plan to produce 47.2 jets per month has been pushed from June to August 2024, while the target of reaching 52.5 jets per month now extends from December 2024 to February 2025.
Boeing aims to attain its pre-pandemic production goal of 57.7 aircraft per month in October 2025, reflecting a delay of three months from the original target of July 2025. While Boeing declined to comment specifically on the revised master schedule, a spokesperson reiterated the company’s plan to increase production to 50 airplanes per month in the 2025/2026 timeframe, aligning with publicly acknowledged targets.
Also Read: Boeing 737 Delivery Dynamics: Navigating Challenges and Targets
Investors responded to the news, with Boeing shares initially falling 1.5% after Reuters published the updated schedule but later closing flat. Deutsche Bank noted that achieving 42 jets per month in February would be perceived as positive news, as most investors had expected this increase to happen in the second or third quarter of 2024.
The supplier master schedule serves as a vital indicator for Boeing’s global supply chain, providing insights into the company’s production expectations. While adjustments in the schedule are not uncommon due to various factors, they offer a glimpse into the evolving dynamics of one of the industry’s critical supply chains.
Boeing, under the leadership of Stan Deal, had previously signaled considerations for ramping up to 42 jets per month by the end of 2023. However, a supplier error discovered in August disrupted these plans, necessitating time-consuming inspections and impacting the overall production timeline.
Boeing’s CEO, Dave Calhoun, emphasized the company’s commitment to keeping suppliers engaged according to the master schedule, even as challenges necessitated a reevaluation of production timelines. Calhoun has maintained that Boeing has the capacity and demand to increase production to 60 737s per month, but careful navigation of the supply chain remains crucial.
Before the 2019 grounding of the 737 MAX, Boeing had been producing 52 737s per month, underscoring the company’s efforts to navigate challenges and restore production levels to pre-grounding rates.
Our Reader’s Queries
How many Boeing 737 have been produced?
The Boeing 737 is a popular aircraft that is currently in service with major airlines such as Southwest Airlines, Ryanair, United Airlines, and American Airlines. It has been in production since 1966 and as of November 2023, there have been 11,615 units built. This aircraft is a reliable choice for airlines and has been a staple in the aviation industry for decades.
What are the Boeing 737 MAX disasters?
The tragic crashes of two 737 MAX 8 planes in Indonesia and Ethiopia in 2018 and 2019 claimed the lives of 346 individuals. This led to a worldwide suspension of the aircraft and raised serious concerns about the safety and quality control measures at Boeing. The incidents sparked a flurry of inquiries and investigations into the matter.
Why did Boeing 737 MAX crash?
Following the mid-air blowout on an Alaska Airlines flight last Friday, United Airlines conducted inspections on other 737 Max jets. The inspections revealed that the part responsible for the failure, a door plug used to seal openings for additional emergency exits, had loose bolts and other installation issues. These findings highlight the importance of thorough inspections and maintenance to ensure the safety of passengers and crew.
What was the Boeing statement on the 737 Max crashes?
At our company, safety always comes first. We understand the negative impact this incident has had on our customers and their passengers, and we sincerely apologize for any inconvenience caused. We stand behind the FAA’s decision to mandate prompt inspections of 737-9 planes that share the same configuration as the affected aircraft.