Aviation expert Peter Rehm discussed reports on the Evening Edit that an Alaska Airlines jet was missing several bolts when it left a Boeing factory.
Aerospace giant Boeing plans to stabilize production of 737 jetliners at a pace of 38 jets per month in the second half of this year, after the manufacturer slowed production lines in the wake of the mid-air cabin explosion of the 737 Max 9.
Chief Financial Officer Brian West said it was lower. Aircraft delivery volume, customer considerations paid to airlines due to the grounding of the Max 9, and Boeing’s need to hold additional inventory from its supply chain will all contribute to the company’s cash usage in the first quarter. Mr. West spoke at the Cowen Aerospace and Defense Conference.
Boeing had previously said it was “cycling” its narrow-body 737s at a rate of 38 planes a month, but West said the company’s focus on production quality after the accident meant it was slowing down the line. He said that it is necessary to stop it periodically.
“We have to admit there’s a lot we have to focus on in terms of keeping the plane in place longer so we can incorporate all the lessons we’ve discovered, but that’s about it. No problem,” West said.
Airlines say Boeing is in ‘last chance saloon’, citing ‘progressive decline’ in manufacturing
Boeing plans to stabilize production of its 737 planes in the second half of this year after shutting down lines in recent months to address quality issues. (David Ryder/Bloomberg via Getty Images/Getty Images)
He added: Federal Aviation Administration (FAA) has the discretion to approve future production rate increases beyond the 737 standard of 38 aircraft per month.
On January 5, an accident occurred during a flight from Portland International Airport, Oregon, to Ontario, California, when a door plug panel came off at approximately 16,000 feet, causing the cabin to depressurize. Following the accident on May 5, the FAA began auditing the Boeing 737 production line. alaska airlines flights Return to Portland.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| BA | boeing company | 204.37 | -4.99 | -2.38% |
The FAA recently prohibited Boeing from increasing production rates for the 737 Max without FAA approval.
Boeing Flag found that some 737 MAX aircraft had holes drilled incorrectly, potentially delaying deliveries
Boeing needs FAA approval to expand production rates for the 737 Max. (Reuters/Jason Redmond/Reuters Photo)
Boeing’s suppliers plan to ramp up production of parts used to build the 737 to the level needed to build 42 planes a month. West said the company has the cash it needs to deal with the surge in excess inventory to keep its supply chain on solid footing.
If Boeing’s suppliers continue to ramp up production as planned, West said, “we’ll be in a much more stable position to avoid some of the issues that have historically held us back.”
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The company’s stock price was down about 2.3% as of Tuesday’s close amid a broader sell-off. market sale Following a better-than-expected inflation report.
