Persistent Challenges Disrupt Boeing’s July Deliveries, Hitting the 737 Aircraft Supply Chain
In a recent setback for the renowned US aerospace giant Boeing, the company has reported a dip in deliveries for July, directly attributed to ongoing disruptions in its supply chain, particularly affecting its vital 737 aircraft narrowbody deliveries.
Deliveries Slump
July witnessed Boeing deliver 43 aircraft, marking a notable decline from the 60 jets delivered the previous month in June. Among these, the 32 737 MAX jets delivered in July starkly contrasts with the 48 units delivered in June. This July slump represents the lowest monthly figure since April. During that time, a concerning revelation emerged, revealing that nearly 75% of Boeing’s 737 inventory bore incorrectly installed brackets on their vertical tails, exposing a significant manufacturing flaw.
The July deliveries included a mixed assortment of aircraft, comprising four 787 Dreamliners, three 767s, three 777 freighters, and a Next-Generation 737. This 737 model is earmarked for transformation into a P-8 maritime patrol aircraft commissioned for the US Navy.
In an official statement issued in July, Boeing’s Chief Executive Officer, Dave Calhoun, spotlighted the persistent disruptions that have taken a toll on the 737 deliveries.
Calhoun attributed these challenges to a range of factors, including the ongoing rework aimed at rectifying the 737 bracket defect, a work stoppage at critical supplier Spirit AeroSystems, and a bridge collapse that wreaked havoc on the railway shipments of 737 fuselages. As a collective consequence, Calhoun acknowledged the likelihood of a delivery shortfall during the third quarter.
Adding to the complexity, Boeing divulged its strategic move to elevate the production of its immensely popular 737s from 31 to an ambitious 38 aircraft per month. However, Brian West, the company’s Chief Financial Officer, offered a word of caution, emphasising that sustaining this accelerated pace of deliveries would require a measured amount of time.
July Orders and Forward Momentum
Despite the challenges faced in July, Boeing managed to log 52 gross orders. Among these, a particularly notable transaction involved Saudia’s previously announced order for 39 Dreamliners, underscoring the company’s enduring appeal in the market. Impressively, these orders remained untouched by cancellations, contributing positively to Boeing’s performance.
Considering the aggregate for the year starting in January, Boeing’s gross order count reached an impressive 579 aircraft. However, after considering cancellations and conversions, a nuanced analysis reveals a net order figure of 467 aircraft. Upon further refinement and adjustments, the net order tally is a commendable 659 aircraft.
Simultaneously, Boeing’s commercial backlog has undergone a noteworthy expansion, increasing from 4,879 to a robust 4,928. This progression hints at the company’s resilience and ability to weather challenges while maintaining a forward trajectory.
Conclusion
Boeing’s July deliveries have encountered a temporary setback as the company grapples with persistent supply chain disruptions that have particularly impacted its 737 aircraft deliveries. This development comes against ongoing efforts to address manufacturing defects, supplier issues, and logistical challenges. As Boeing navigates these obstacles, the company’s strategic vision and enduring market appeal are poised to drive its future successes.
