Exclusive: Boeing Tells Suppliers it is Slowing 737 Output Goal by 3 months
Exclusive: Boeing tells suppliers it is slowing 737 output goal by 3 months, sources say
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An employee works near a Boeing 737 Max aircraft at Boeing's 737 Max production facility in Renton, Washington, U.S. December 16, 2019. REUTERS/Lindsey Wasson/File Photo听
June 14 (Reuters) - Boeing听has told suppliers it is delaying a key production milestone for its 737 jet family by three months, two industry sources said, as it continues to struggle with a crisis that is hurting output.
A new Boeing supplier schedule communicated to the industry calls for 737 output to reach 42 a month in September, compared with a previous target of reaching that output in June, the sources said. Boeing was not immediately available for comment.
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Boeing's jet production has slowed sharply in the face of increased scrutiny from regulators, airlines and lawmakers following a January incident when a door plug blew off an Alaska Airlines听jetliner while in mid-air.
Boeing's supplier master schedule lays out expectations for when suppliers should be at a given production rate. Analysts say it does not necessarily reflect actual production which has been lagging due to a mixture of regulatory scrutiny and supply constraints.
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However, Boeing鈥檚 decision to push back the target is an indication that it believes supply pressures are not easing. Rival Airbus, the worlds largest planemaker, is also bracing for inceeased near-term disruption amid shortages of parts and labor, Reuters听.
The new supplier schedule calls for output to reach 47 a month in March 2025, compared with January of that same year. Output would reach 52 a month in September 2025, compared with June.
Boeing shares fell 2.2% in Friday trading.
The company last month said it would听听in 2024 and deliveries will not increase in the second quarter as originally expected.