Boeing: American authorities freeze increased production of the 737 MAX

The disappointments continue for Boeing after one of its aircraft operated by Alaska Airlines lost a door in flight in early January. US regulators (FAA) froze increased production of the 737 MAX on Wednesday, January 24, raising concerns about the growth plans of airlines and suppliers around the world. This decision will, however, make it possible to lift the partial immobilization of the MAX 9s already produced once the inspections are completed.

The FAA said the order meant Boeing could continue producing MAX planes at the current monthly rate, but it could not increase it. She did not give an estimate for how long the limitation will last and did not say how many planes Boeing can produce each month. Inspections on aircraft already produced will make it possible to detect and correct possible flaws in production, with companies having found poorly tightened bolts on their aircraft after the Alaska Airlines incident.

The ability to resume flights came as a relief to the MAX 9's U.S. operators, Alaska Airlines and United Airlines, which were forced to cancel thousands of flights and plan to return the planes to service on Friday and Sunday, respectively.

However, experts said the FAA's response to "unacceptable" quality checks following the loss of a door plug at 15,000 feet on Jan. 5 could delay some deliveries of new planes to airlines. airlines and harm suppliers already shaken by a previous MAX crisis and by the pandemic.

That ripple effect began to show on Thursday, when loyal Boeing customer Southwest Airlines changed its 2024 fleet plans, saying it expected to receive fewer deliveries of 737 MAX planes. . Boeing is seeking to increase production of its best-selling 737 MAX family to meet demand and close the gap between it and European maker Airbus in the jet market.

Analysts have expressed concern that increased scrutiny of Boeing factories following the MAX 9 door jam burst could temper increased production of the smaller, more widely sold MAX 8, which is a key source of liquidity for Boeing and many suppliers.

Boeing said it would continue to cooperate "fully and transparently" with the FAA and follow the agency's guidance as it takes steps to enhance safety and quality. In October, Boeing CEO Dave Calhoun said the company planned to reach production of 38 MAX planes per month by the end of 2023.

Boeing's latest master plan for the 737, which sets the production pace for suppliers, calls for production to increase to 42 jets per month in February, 47.2 in August, 52.5 in February 2025 and 57, 7 in October 2025, Reuters reported in December. However, Boeing's production rate may be lower than the supplier's master schedule.

The FAA's decision could impact plans to create a new 737 MAX route in Everett, Washington, by mid-2024, after production of the 737 MAX ends. The iconic Boeing 747 in this immense factory. The route, expected to be the fourth 737 route overall and the first outside the Renton plant, also located in suburban Seattle, is needed to meet high demand.

Boeing declined to comment on any potential impact on the Everett line. Once accused of being too lax on Boeing, the FAA has stepped up its oversight since the MAX crashes led to a worldwide flight ban, but Wednesday's intervention opens new possibilities, according to the experts.

Shares of Boeing fell 2% in U.S. pre-market trading. Shares of suppliers Spirit AeroSystems fell 3.9% and Howmet Aerospace fell 3.3% before the bell, while UK supplier Senior was down 3.3% in regular trading.