Boeing Targets Stabilization of 737 Max Production by Second Half of 2024

Boeing has set its sights on stabilizing the production rate of its B737 MAX aircraft, aiming for a consistent output by the latter half of 2024. This initiative, as explained by Boeing’s Chief Financial Officer Brian West during the Cowen Aerospace & Defense Conference, involves adhering to a current cycle of 38 aircraft per month. However, the actual production in the first half of the year will be lower due to extended quality assurance measures and the implementation of lessons learned from ongoing audits.

The effort to stabilize production rates comes in response to Boeing’s necessity to occasionally pause assembly lines to incorporate findings from its quality audit, directly impacting output. Despite the challenges, Boeing is reluctant to disclose its exact current production figures.

This development follows closely behind comments from Boeing’s Senior Vice-President of Global Supply Chain and Fabrication, Ihssane Mounir, who urged suppliers to maintain patience as Boeing works through its audit process with the Federal Aviation Administration (FAA). The FAA has indicated that it will not approve any increase in production rates beyond 38 aircraft per month until Boeing addresses quality issues that have persisted.

Although the FAA does not have direct control over production rates, it can effectively limit the number of B737 MAX aircraft entering service by capping the issuance of airworthiness certificates. Reports suggest that Boeing’s actual production has been below its stated rate of 38 aircraft per month, with challenges in achieving even the earlier rate of 31 aircraft per month throughout 2023.

As Boeing endeavors to reach its planned production milestones, the company emphasizes the importance of navigating through the FAA’s audit process and rectifying any identified issues. This approach aims to ensure that Boeing can increase production rates as previously forecasted, with a focus on delivering a steady flow of B737 MAX aircraft in the second half of 2024.