Boeing is set to increase production of its 737 Max aircraft to 42 jets per month at its Renton, Washington plant, starting June 25, 2024. This decision follows regulatory approval from the Federal Aviation Administration (FAA), which had previously limited production to 38 jets per month after a near-incident involving a door plug issue in January 2024.
The FAA’s scrutiny resulted from a National Transportation Safety Board report revealing that Boeing had failed to reinstall critical bolts in the door plug before the aircraft’s departure from the factory. Although the plane landed safely, it underscored the challenges Boeing faces as it aims for a turnaround after years of setbacks, including the grounding of the 737 Max due to two fatal crashes in 2018 and 2019.
Boeing’s CEO, Kelly Ortberg, expressed optimism about future production increases, aiming to eventually reach a rate of 47 jets per month. The FAA’s recent decision also signifies a potential easing of regulations, allowing Boeing to re-certify some aircraft before delivery. Despite ongoing challenges, including the impacts of the COVID-19 pandemic and supply chain issues, Boeing reported increasing production rates and aims to improve its inventory balance. The company has not achieved annual profits since 2018 but is on track for higher delivery rates as it prepares to announce quarterly results on October 29.
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