Boeing signals two-month delay to 737 production ramp-up: Report  

Boeing is adjusting its plans to increase production of its popular 737 narrow body jetliner, signalling a two-month delay, Reuters reported on Thursday.

The U.S. plane maker now expects to produce 42 of its 737s per month starting in February 2024, marking a shift from the initial target at the end of 2023. This adjustment comes as Boeing and its European rival Airbus face challenges in meeting soaring customer demand due to supply chain bottlenecks and production disruptions.

While Boeing declined to comment specifically on the new master schedule, the company reaffirmedits commitment to increasing production to 50 airplanes per month in the 2025-26 timeframe.

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The updated schedule also affects subsequent rate increases, pushing Boeing's plan for 47.2 jets a month from June to August 2024, and the target to increase 737 productions to 52.5 jets a month moved from December 2024 to February 2025.

Boeing now anticipates achieving its pre-pandemic goal of 57.7 aircraft per month in October 2025, reflecting a three-month delay from the original target of July 2025.

Despite the adjustments, the company expressedits confidence in meeting production goals and satisfying customer demand. According to Deutsche Bank, a move to 42 jets a month in February will be perceived as "good news" by investors.

Boeing's CEO, Dave Calhoun, previously emphasised the company's intention to increase production levels, stating that Boeing is capitalised to manufacture 60 737s a month. However, the recent adjustments underscore the challenges posed by supply chain complexities.

Calhoun acknowledges the importance of ensuring planned rate increases can navigate through the supply chain effectively. The 737 master schedule, a crucial component of the global supply chain, provides insights into the industry's confidence and drumbeat, even though it may evolve due to various factors.

This development follows a supplier error discovered in August, which prompted Boeing to conduct time-consuming inspections of some of the 737 MAXs on its production line, contributing to the slowdown.

Despite the challenges, Boeing is set to rampup production, having previously announced an increase from 31 to 38 jets per month in July.

(With inputs from Reuters)

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