Boeing Faces Delays in Restarting Factories After Strike

Boeing has announced that it will take several weeks to fully restart its factories following a more than seven-week machinist strike. While machinists are required to return to their jobs no later than Tuesday, the company noted that ramping up production will be a gradual process.

The strike, which began on September 13, 2024, was resolved after workers approved a new contract offering 38% pay raises over four years and other improvements. The walkout had halted the production of most Boeing aircraft, and in October, the company delivered only 14 jetliners, the lowest monthly total since November 2020 during the pandemic. Of those, nine were 737 Max models. Despite the reduced output, workers unaffected by the strike handled the deliveries.

Boeing’s delays have further widened the gap between it and its European competitor, Airbus. So far in 2024, Boeing has handed over 305 planes, while Airbus has delivered 559. The manufacturing restart process will involve assessing potential hazards, restating machinist duties and safety requirements, and ensuring that all training qualifications are up to date, according to the company.

Boeing’s CEO, Kelly Ortberg, emphasized the challenge of resuming production after the strike, stating, “It’s much harder to turn this on than it is to turn it off. So it’s absolutely critical that we do this right.” Production will resume in Washington and Oregon for the 737 Max, 767, and 777 programs, while the 787 Dreamliner production, which continued during the strike, is based in South Carolina in a nonunion factory.

Despite the strike, Boeing managed to secure 63 gross aircraft orders in October, nearly matching September’s total, including 40 737 Max 8s for Avia Solutions Group and 10 787 Dreamliners for LATAM Airlines. However, the company remains behind Airbus in terms of total aircraft deliveries this year.

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Sources: AirGuide Business airguide.info, bing.com, cnbc.com