Boeing Struggling to Meet Delivery Targets for 737 Aircraft
September 7, 2023
WASHINGTON – Boeing is facing challenges in meeting its delivery targets for narrowbody 737 aircraft this year, according to the company’s chief financial officer, Brian West. Despite a recently discovered production flaw that has slowed deliveries of its bestselling 737 MAX, Boeing remains committed to delivering at least 400 aircraft.
However, West acknowledged that Boeing will be at the “low end” of its target range of 400-450 jets. Additionally, the margins for Boeing’s commercial airplanes business are expected to be negative in the third quarter due to low deliveries and higher development costs.
The production flaw, which was discovered late last month, involves misaligned or elongated fastener holes on the 737 aft pressure bulkhead. West revealed that approximately 75% of the 220 737s in Boeing’s inventory will require rework. The fix is expected to be more time-consuming than a previous issue with improperly attached brackets on the 737’s vertical tail.
“There’s hundreds of holes that get inspected, there’s an X-ray inspection process step that’s required, and it’s a very critical part of the airplane,” West explained.
Spirit AeroSystems, which manufactures 70% of the 737’s structure, used an automated drilling process that resulted in oblong holes on the aft pressure bulkhead when not executed correctly, said Spirit CEO Tom Gentile. The company has 39 bulkheads at its factory that will need rework, with 15 of them already undergoing the necessary inspection process to determine which holes require fixing.
“We expect to be done with the repairs of the units in our factory by the end of November,” Gentile stated. “For Boeing, it may take a little bit longer.”
In addition to the production flaw, Boeing has experienced a decrease in narrowbody deliveries. While over 100 737s were delivered in the first and second quarters, only approximately 70 are expected in the third quarter due to a disappointing 22 aircraft delivered in August.
Gentile also mentioned that 737 fuselage deliveries to Boeing in 2023 will be at the lower end of the company’s target range of 370-390 units.
Boeing remains focused on resolving these production issues and meeting its delivery targets. The company aims to regain its momentum in the commercial aviation market and maintain customer satisfaction despite the challenges it faces.
Contacts:
Valerie Insinna – [email protected]
Abhijith Ganapavaram – [email protected]
About the Authors:
Valerie Insinna and Abhijith Ganapavaram lead a team of reporters covering various industries in the United States. Insinna specializes in aviation, while Ganapavaram focuses on the manufacturing sector, with a particular emphasis on the aviation industry. As part of their previous work, the team won the Reuters Journalist of the Year award in the speed category.
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Note: This article has been published with permission from Reuters.