After a month-long hiatus, Boeing has restarted its production following a labor strike that temporarily halted operations at two vital factories.
After a month-long hiatus, Boeing has restarted its production following a labor strike that temporarily halted operations at two vital factories.
Boeing initiated the production of its 737 Max aircraft again on a Friday, as per their announcement. Simultaneously, they revealed plans to resume operations at a second Washington facility, which manufactures 767 and 777 freighters, within a few days.
NBC News reported that FAA head Michael Whitaker claimed Boeing hadn't resumed production yet, eight days prior. The FAA assumed a more active supervising role following an incident in early January when an Alaska Airlines 737 Max lost a door plug shortly after takeoff. Consequently, they imposed limitations on the number of Max jets Boeing could produce. An initial inspection revealed that the jet left the factory without the necessary bolts to secure the door plug.
Boeing employees allegedly felt pressure to hasten the production process at the expense of safety and aircraft quality, as reported by whistleblowers during their testimonies before the National Transportation Safety Board and congressional hearings.
The manufacturing pause after the Alaska Airlines incident revealed how extensive the impact of the two-month-long labor strike was. Besides stopping the production of most Boeing commercial planes, it also suspended operations at several suppliers, who had to bring back laid-off workers.
Boeing asserted that they utilized the four weeks following the strike end for "training, certifications, ensuring parts and tools are ready, and finishing jets in inventory." However, even operating at the pre-strike capacity would not grant the company profitability for the first time since 2018. It has accrued a total core operating loss of $39.3 billion since the two fatal crashes of 737 Max jets in 2018 and 2019, resulting in a 20-month suspension of the jet, which claimed 346 lives. Boeing warned investors that they would experience losses throughout 2024 as well.
The company also declared they delivered 13 aircraft to customers in November. Boeing receives most of its revenue at the time of delivery, making these deliveries crucial. Two of these jets were 787 Dreamliners built at the South Carolina non-union plant that didn't strike. The remaining 11 were almost completed before the strike begun on September 13, but eventually finished recently.
In total, Boeing has delivered 318 commercial planes in 2023, a drop of 31% compared to the same period in 2023. Felicitously, they recorded the highest number of orders in their history just before the Alaska Airlines incident caused new orders to dwindle dramatically. The company booked 427 gross orders in 2023, a significant decrease of over 60% compared to the same period in 2023. For November, following the strike, they managed to secure 49 gross orders, although 14 cancellations lowered the net figure.
Despite Boeing's announcement to restart 737 Max production and resume operations at another facility, ongoing safety concerns persist within the business. Whistleblowers have alleged pressure to expedite production, potentially compromising safety and aircraft quality.