• 

  Boeing

  Stock Code:

  BA

  Date Founded:

  1916-07-15

  CEO:

  Dave Calhoun

  Headquarters Location:

  Chicago, USA

  Key Product Lines:

  Boeing 737, Boeing 747, Boeing 757, Boeing 767, Boeing 777, Boeing 787

  Business Type:

  Planemaker

Boeing has announced plans to increase production of the popular 777 freighters in light of the decision to pause 777X production through 2023. The additional assembly lines will be used to clear the growing 777F order backlog, which has exploded in popularity through the pandemic.

Up 50%

Boeing has announced plans to increase the monthly output of 777Fs from two to three at the Everett Factory. With its two flagship widebody programs in trouble, Boeing is doubling down on the 737 MAX and 777F to boost deliveries and keep revenue flowing.

Since the cargo demand surged following the pandemic, new airlines and existing customers have been piling on orders for the 777F. From big names like DHL and Qatar Airways to Silk Way West and more, carriers are trying everything to get their hands on more planes. Now, their delivery timelines might all go up by a few months.

For Boeing, increasing 777F production by 50% is a slam-dunk, making understandably frustrated customers a bit happier and increasing revenues. The rise will come into effect later this year, with a specific date to be announced soon.

777X woes

The ability to increase production of the legacy freighter comes after Boeing is pausing the assembly of the 777X program through 2023. This means several new FALs (final assembly lines) can be fitted for other makes of the 777 in the meantime. The decision to pause production comes after Boeing said certification for the 777X is looking unrealistic until the end of 2024 and first deliveries in mid-2025.

Notably, this is a sliding scale, with Boeing facing hurdle after hurdle in getting its latest jet approved by the FAA. This has also left major customers like Emirates unhappy, with the first delivery now five years behind target, creating costly upgrades and the use of older planes for much longer. The production pause will at least prevent more planes from aging while pending delivery, with Sir Tim Clark noting that Emirates' first 777X would be seven years old on delivery.

Add to this the delivery halt on the 787 and Boeing's widebodies deliveries have slowed to a trickle. Luckily, the 737 MAX is picking up the slack, with the rate rising to 31 planes a month effective the second quarter of 2022.

Looking to move ahead

While Boeing is facing fire on many fronts, the company is hoping to steadily work through and move ahead. After doubts over its safety culture following the two MAX crashes, the aerospace giant is under pressure from regulators to test every aspect of a new plane and isn't afraid to halt deliveries if needed. For now, all eyes will be on how CEO Dave Calhoun handles the next 12 months and if he can get the American icon back on top.

What do you think about Boeing's decision to pause 777X production? Let us know in the comments.

Source: BizJournals