Latest Boeing 737 MAX defect hit three quarters of fleet, says CFO
The latest production snag at Boeing hit nearly three quarters of its bestselling fleet of 737 MAX aircraft, its CFO has said.
Speaking at an investors conference, Boeing executive Brian West described the impact on the company’s inventory as “large”, but said that it would not affect its yearly goal of delivering between 400-450 narrowbody 737s.
“We are not changing that range” he told investors, but added that he now expects it “to be at the lower end.”
Improperly drilled holes in the aft pressure bulkhead of some of Boeing’s iconic 737 MAX planes resulted in yet another supply chain defect at the planemaker, it was disclosed in August.
It comes after a year plagued by production glitches involving the aircraft and supplier Spirit Aero Systems, which have impacted monthly deliveries at a time when demand for flying is soaring.
In April, an incorrect installation of rear fittings, which attach the plane’s tail to the aircraft body, saw Boeing jet deliveries slump to their lowest levels in a year despite stronger demand.
“In terms of our focus with our supplier, it is 100 per cent the most important thing we are working on right now,” West said.
“We’ve got literally armies of people from Boeing and the supplier working on this issue and to drive stability in their factory and these are frustrating moments for our customers and our teams,” he added.
The repeat problems this year have yet to hit Boeings’ annual delivery forecasts and West was still bullish about the companies’ prospects in the long term.
By the 2025/26 year, the US group is targeting $10bn of free cash flow and 60 deliveries of 737 and 787 planes per month and “that remains unchanged,” he told the conference.