PARIS June 18 (Reuters) – Boeing (BA.N) expects to increase production of its best-selling 737 MAX to 38 jets a month “pretty soon,” but the company is likely to see supply chain instability at every rate increase, the head of Boeing Commercial Airplanes (BCA) said Sunday.
Boeing had planned to bolster 737 MAX production from its current 31 jets per month before the end of the year, but that could occur “sooner rather than later,” BCA CEO Stan Deal told reporters during a roundtable ahead of the Paris Airshow.
However, he warned that the supply chain continues to be a challenge, with new issues constantly being found.
While there was instability as industry increased production rates prior to 2019, “this is a little different,” Deal said. “COVID had a pretty significant impact on labor, and this industry still depends on labor … to get to its net efficiency.”
Boeing has started a supply chain quality review, with participants including CEOs and other C-suite officials, as well as quality and engineering officials from Boeing’s tier-one supply chain that creates major aero-structures and sub-assemblies, Deal said.