Boeing (BA, Financial) plans to stabilize the production of its 737 MAX aircraft at 38 units per month in the coming months, according to Doug Ackerman, Vice President of Commercial Airplane Quality. The production cap was set by the Federal Aviation Administration (FAA) after an in-flight panel incident in early 2024. Previously, production varied between the teens and thirties due to financial and reputational challenges faced by Boeing, including a significant loss of nearly $12 billion last year.
The company aims to increase production to boost cash flow. Insiders suggest that Boeing is on track to produce about 38 units this month. CEO Kelly Ortberg stated that Boeing needs to maintain this production level for several months before requesting the FAA to lift the cap. Once stable, Boeing plans to restart efforts to add a fourth production line.
Boeing's annual Chief Aerospace Safety Officer report highlights progress in meeting six quality and safety metrics set by the company and regulators. The report notes a 220% increase in safety hazard reports from employees through the company's reporting system. The evaluation of safety hazards by impartial managers from other departments is part of ongoing improvements.
Boeing is also using machine learning to detect supply chain quality issues early. Although still being refined, this approach shows statistical correlations between data and potential supply chain problems.
