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Boeing expects 787 suppliers to catch up by year’s end, restoring output By Reuters

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Written by Alison Lambert

(Reuters) – Boeing Co expects delayed suppliers to make up for parts that have slowed production of its 787 jetliner to less than five a month, as the U.S. planemaker works to restore production of two key commercial programs by the end of the year.

Boeing and its European rival Airbus are struggling to meet strong airline demand for aircraft as they struggle with supply chain and factory problems.

Such concerns are expected to cast a shadow over the Farnborough Airshow, which runs from July 22-26, despite strong travel demand.

Earlier this year, Boeing cut production of the 787 to let “suppliers catch up,” a company executive told reporters during a June visit to its sprawling 777 widebody factory in Everett, Wash.

“Our plan is to return to five flights per month later this year when we see that the parts supply is back where it needs to be,” said Scott Stocker, vice president and general manager of the 787 program in South Carolina.

Boeing executives told reporters the company is taking similar steps to increase employee feedback and production quality on its widebody jets that fly long international routes, such as its single-aisle 737 Max.

The planemaker is under increasing legal and regulatory scrutiny after a door seal exploded mid-air in January on a nearly new 737 Max 9 jet, which was blamed on missing rivets. Boeing has said it will restore 737 production to about 38 by the end of the year after cutting production of its best-selling jet.

While the planemaker has given a boost to its widebody jets by starting flight tests this month of its long-awaited 777-9, delays in the supply of seats and heat exchangers have created separate challenges for the 787.

A separate problem with the Dreamliner’s stabilizers, revealed by Reuters in June, has no impact on the current price, Stocker said.

Stocker also said Boeing conducted a comprehensive fleet analysis after an employee alerted the planemaker earlier this year that some tests had not been completed. The U.S. Federal Aviation Administration has opened an investigation.

“We found that we had to get back to work and address some of the work that had not been done properly. The investigation is still ongoing but we have made really good progress,” he said.

Boeing has halted deliveries of its 787 widebody jets for more than a year until August 2022 while the Federal Aviation Administration investigates quality issues and manufacturing defects.

However, the aircraft maker is looking to ramp up Dreamliner production, after setting a target rate of 10 Dreamliners per month in the 2025-2026 timeframe at its 2022 Investor Day.

Stocker did not specify a long-term goal: “We plan to raise prices over the next few years.”

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