Post by addasih on Jul 13, 2021 20:18:13 GMT 1
Boeing cuts 787 production, suffers 737 MAX cancellation
Boeing Co said on Tuesday it will cut 787 production after finding another production-related structural defect, and a major customer partially canceled a 737 MAX order, in a double hit to the U.S. planemaker's COVID-19 pandemic recovery.
Chicago-based Boeing now forecasts delivering fewer than half of the lingering 100 or so 787 Dreamliners in its inventory this year - instead of the "vast majority" it had expected - as it continues forensic inspections and costly repairs to address quality flaws in the aircraft.
Boeing did not disclose a new production rate for the 787 program, but said it would shift temporarily below the already-slow current rate of five jets per month.
"To us this is more significant than the cut to the delivery forecast, as it ripples down through the supply chain," Vertical Research Partners analyst Robert Stallard said in a client note.
"The supply chain cannot just be turned on and off like a switch," Stallard added.
Separately, United Arab Emirates airline flydubai said on Tuesday it has agreed with Boeing to cut the number of 737 MAX aircraft it will take delivery of by 65. The airline has already taken delivery of 16 MAX jets out of its total order of 251, according to Boeing's website.
Chicago-based Boeing now forecasts delivering fewer than half of the lingering 100 or so 787 Dreamliners in its inventory this year - instead of the "vast majority" it had expected - as it continues forensic inspections and costly repairs to address quality flaws in the aircraft.
Boeing did not disclose a new production rate for the 787 program, but said it would shift temporarily below the already-slow current rate of five jets per month.
"To us this is more significant than the cut to the delivery forecast, as it ripples down through the supply chain," Vertical Research Partners analyst Robert Stallard said in a client note.
"The supply chain cannot just be turned on and off like a switch," Stallard added.
Separately, United Arab Emirates airline flydubai said on Tuesday it has agreed with Boeing to cut the number of 737 MAX aircraft it will take delivery of by 65. The airline has already taken delivery of 16 MAX jets out of its total order of 251, according to Boeing's website.
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