Boeing expects slower production increase of 787 Dreamliner because of parts shortages

Boeing expects slower production increase of 787 Dreamliner because of parts shortages


Boeing 787 Dreamliners are built at the aviation company’s North Charleston, South Carolina, assembly plant on May 30, 2023. 

Juliette Michel | AFP | Getty Images

Boeing told employees on Monday that it expects a slower increase in production and deliveries of new 787 Dreamliner planes because of supplier shortages of “a few key parts.”

Boeing has already slowed down deliveries and output of its 737 Max planes in the aftermath of a near catastrophe in January when a door plug blew out from one of the jetliners mid-flight.

The company had separately been trying to boost output of 787 Dreamliners after quality problems suspended deliveries for nearly two years, ending in mid-2022.

“We continue to take steps to improve the overall health of our production system, putting into action your ideas for improving safety, first-pass quality, training, performing more work in sequence and ensuring our teams have the necessary resources to excel,” said Scott Stocker, 787 vice president and general manager, in a memo to staff at Boeing’s South Carolina 787 plant.

Stocker said Boeing is still facing supplier shortages.

“To that end, we have shared with our customers that we expect a slower increase in our rate of production and deliveries,” he wrote in the memo, reported earlier by Reuters, adding that the company still plans to increase the rate steadily because of high demand.

Boeing was producing about five 787 Dreamliners per month as of late last year and said in January it aimed to get up to 10 a month as early as next year.

Boeing is set to report quarterly results and will likely detail its production plans before the market opens on Wednesday.

Don’t miss these exclusives from CNBC PRO



Source

The warehouse real estate sector is seeing a rebalance. Here’s what to watch for
Business

The warehouse real estate sector is seeing a rebalance. Here’s what to watch for

A large industrial warehouse features rows of shelves stacked with packages, while two workers in safety gear are walking and inspecting the storage. Utilized space exemplifies efficiency and systematic inventory management. Witthaya Prasongsin | Moment | Getty Images A version of this article first appeared in the CNBC Property Play newsletter with Diana Olick. Property […]

Read More
‘To sustain the ride, they started to dilute it’: How Black Friday became a retail letdown
Business

‘To sustain the ride, they started to dilute it’: How Black Friday became a retail letdown

Black Friday early morning shoppers rush in as the doors are opened at a Walmart store in Fairfax, Virginia, Nov. 28, 2008. Gerald Martineau | The Washington Post | Getty Images Black Friday has long been defined by massive crowds, rock-bottom prices and rabid consumers willing to bite, scratch and claw their way to the […]

Read More
With Trump’s tax bill set to dent giving by the wealthy, can middle-class donors make up the difference?
Business

With Trump’s tax bill set to dent giving by the wealthy, can middle-class donors make up the difference?

A woman puts money into a Salvation Army red kettle outside of Giant Supermarket in Alexandria, Virginia on November 22, 2023. Eric Lee | The Washington Post | Getty Images A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to […]

Read More