Production Rate Stabilization Slower Than Expected
Boeing's newly activated production line in Everett is taking longer to reach a steady operational pace than the company had initially projected, CEO Kelly Ortberg said during a Wednesday industry conference.
The aerospace manufacturer is currently building 47 aircraft per month, a rate authorized after the Federal Aviation Administration completed a key review. The company's long-term objective remains 52 units monthly, a target the North Line facility is intended to support.
"We are not stable yet at 47 a month," Ortberg told attendees at the Morgan Stanley conference. "That's been our task here: to get stable."
The facility in Everett handles the assembly of 737 MAX 8, 9, and 10 models. While the wings are manufactured at the Renton site and transported to Everett for final assembly, the CEO identified wing production as the current bottleneck.
"We just have not seen the flow improvements that we expected in the time frame," he stated.
Ortberg confirmed that the company has plans to resolve these issues but did not disclose specific details regarding the strategy.
The FAA originally placed a limit of 38 units per month on 737 MAX production following an incident in 2024 involving a door plug that detached from a plane after it departed Portland. That ceiling has been raised in stages since the event.
The CEO stated that once the current flow issues are addressed, the supply chain is in pretty good shape to move to the next production rate.
The 737 MAX program has previously encountered obstacles, including problems with engine deicing systems. These technical issues delayed the certification process for the MAX 10 and MAX 7 variants.
The FAA granted certification for the 737 MAX 7 in August. Certification for the MAX 10 is coming very soon, Ortberg said. Boeing is currently building two MAX 10s in Everett as part of the line certification.