Boeing outlined an ambitious plan to nearly double the production of the 737 MAX to try to end the successive crises it has been embroiled in over the past few years.
According to two insiders at the manufacturer and as reported by Reuters, Boeing would seek to bring the production rate of its narrow-body jet to around 47 units a month by the end of next year. It appears that Boeing would ignore Safran’s warnings. Last December, Olivier Andries – the engine maker’s CEO – had said that “the supply chain has been severely compromised by the crisis” caused by the pandemic.
Boeing had virtually halted production of the model due to the suspension of operations following the 2018 and 2019 accidents. Just when everything seemed to be about to return to normal, the Covid-19 pandemic broke out. Hence cutting off any prospect of recovery and further impacting the US giant’s business.
As a result of these factors, Boeing had nearly 500 units of the MAX family in storage and awaiting delivery. In late January, it reported that it had 335 737 MAX aircraft in its backlog, reporting that according to internal estimates, most of those aircraft would be delivered by the end of 2023.
Demand explodes
Now, in what appears to be the home stretch of the pandemic, both Boeing and rival Airbus are seeing demand for their airliners explode. The main driver for this is in the regional equipment sector, as long-range operations do not yet appear to be reviving.
In late January, Boeing CFO Brian West indicated that the 737 program was producing at a rate of 27 aircraft per month, and was on track for 31. Reuters’ sources said this target would be reached during the second half of this year at the latest. Boeing will then increase production to 38 units per month in the first half of 2023. Therefore will be reaching the final target of 47 planes per month in the second half of 2023. Prior to the model crisis, 52 737 MAXs were coming off the production line per month.
While Boeing has its sights set on increasing the production of the model, plans are in flux and influenced by many factors. The industry has several concerns about whether the supply chain will be able to meet aggressive production ramp-up plans: suppliers are grappling with labor shortages, raw material shortages, and incipient raw material price increases.
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