Boeing’s 737 Production Plans Amid Challenges

Boeing is aiming to stabilize its 737 production at 38 planes per month in the upcoming months.

The U.S. Federal Aviation Administration has set this limit following an incident in January 2024 involving the blowout of an air panel on a nearly new 737.

Before this, the production of these best-selling planes had fluctuated between the teens and 30s. The company has faced several crises and controversies, which negatively impacted its finances, employee morale, and public trust.

After incurring a loss of nearly $12 billion last year, Boeing is under pressure to ramp up 737 production to generate more revenue.

According to two sources familiar with the matter, the company plans to produce around 38 of these popular aircraft this month.

A Boeing spokesperson declined to comment on the production numbers for May.

Boeing’s CEO, Kelly Autoberg, has previously stated that the company must demonstrate its ability to sustain this production level for several months before requesting the FAA to lift the current cap.

Once production is streamlined, the company intends to resume work on establishing a fourth production line, as noted by Ackerman.

As per the annual Aerospace Safety Officer Report released on Wednesday, Boeing has been making consistent progress across all six production quality and safety metrics outlined by both the company and regulatory authorities.

Interestingly, the number of safety concerns reported through the company’s Speak Up Reporting System rose by 220% from 2023 to 2024, according to the report.

Aerospace Safety Director Don Luman mentioned in a press briefing that ongoing adjustments are enhancing the effectiveness of this reporting program.

For instance, safety concerns are now evaluated by managers from different departments who are perceived as more impartial than those directly overseeing the work being criticized.

Boeing is also leveraging machine learning to identify potential quality issues within its supply chain. Ackerman indicated that while they are still in the process of “fine-tuning” this approach, there seems to be a statistical correlation between the data collected and potential supply chain challenges.