April 13, 2024
Boeing,737 MAX,production increase,supply chain instability,BCA CEO,COVID-19 impact,labor availability,supply chain quality review,Paris Airshow

PARIS, June 18 (Reuters) – Boeing (BA.N) is preparing to ramp up production of its popular 737 MAX aircraft to 38 jets per month in the near future, according to Stan Deal, CEO of Boeing Commercial Airplanes (BCA). However, Deal warned that the company anticipates encountering supply chain challenges with every rate increase.

Initially aiming to increase production from the current 31 jets per month by the end of the year, Boeing may achieve the target “sooner rather than later,” stated Deal during a roundtable ahead of the Paris Airshow.

Addressing the persistent hurdles, Deal emphasized the ongoing complexities within the supply chain, citing the continuous emergence of new issues. While the industry faced instability in the past when production rates escalated prior to 2019, the present circumstances are distinct due to the profound impact of COVID-19 on labor availability.

Deal further explained, “COVID had a pretty significant impact on labor, and this industry still depends on labor … to get to its net efficiency.”

In response to the challenges, Boeing has initiated a thorough supply chain quality review. The review involves the participation of CEOs and other C-suite officials, along with quality and engineering personnel from Boeing’s tier-one supply chain responsible for manufacturing critical aero-structures and sub-assemblies.

As Boeing strives to enhance its production capabilities, the company recognizes the crucial role of a stable and efficient supply chain. Efforts are being made to address the persisting issues and ensure the seamless flow of components necessary for meeting the growing demand for the 737 MAX aircraft.

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