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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
After 15 months of halted deliveries, The Federal Aviation Administration (FAA) has given the green light to Boeing’s inspection and modification plan for the Boeing 787 Dreamliner, according to persons familiar with the matter.
Background
In May 2021, deliveries of the 787 were halted following production issues dating back at least two years.
Deliveries of the aircraft were briefly paused between January and March 2021, though further concerns were raised regarding the manufacturer’s proposed inspection methods several weeks later.
A second airworthiness directive for in-service jets was issued in July 2021 after engineers uncovered 20 instances of improperly filled gaps.
Fifteen months down the line, a resumption of deliveries is finally on the horizon. While no official date has been given, reports by Bloomberg suggest that Boeing aims to have its first jets flying out in the week beginning August 8, provided necessary changes are completed and inspections are approved.
This week’s FAA approval is just the first step in the regulatory process, with more stages ahead before deliveries can restart.
Boeing has not yet confirmed the approval. In a statement provided to Simple Flying, a spokesperson for the aircraft manufacturer noted,
“We will continue to work transparently with the FAA and our customers towards resuming 787 deliveries.”
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Coming soon to an airline near you?
During its Q2 earnings call earlier this week, Boeing Chief Financial Officer Brian West confirmed that the company was nearing the return of the 787 and already preparing the jets for delivery, adding that global supply chain issues need to be monitored.
West said:
“We’re very close to resuming deliveries. We’re readying airplanes together with our customers and have completed flight checks on the initial airplanes. “We’re producing at very low rates and will continue to do so until deliveries resume, gradually returning to five airplanes per month over time.”
American Airlines is expected to receive the first 787 once deliveries begin. In the legacy carrier’s earnings call on July 21, CFO Derek Kerr stated that the airline expects to receive nine 787s by the end of the year, with two arriving in early August.
A resumption in deliveries will likely provide a boost to the aircraft manufacturer, which has just recorded its first return to profit in almost two years.
Boeing was hit hard following the grounding of the Boeing 737 MAX in 2019 and subsequent 787 manufacturing issues, with the company posting an $8.377 billion loss in Q4 2020.
In its Q2 results released earlier this week, Boeing posted a $490 million profit for the period between March and July, revealing that it expects to meet positive free cash flow by the end of Q4.
At the end of Q2, Boeing currently has 4,200 aircraft in its commercial backlog, worth almost $300 billion. The company delivered 121 commercial jets, including 103 737 units, up significantly from Q1 and Q2 2021.
What are your thoughts on 787 deliveries restarting? Have you had a chance to fly on the jet? Let us know in the comments.
Sources: Reuters, FlightGlobal, Bloomberg