Boeing Cleared by FAA to Boost 737 Max Output to 47 Jets Monthly, CEO Ortberg Confirms
Boeing Chief Executive Officer Kelly Ortberg confirmed Wednesday that the company has met Federal Aviation Administration requirements to increase production of its 737 Max aircraft to 47 jets per month. The company is currently rolling out aircraft at a rate of 42 per month, Ortberg stated during a Bernstein conference.
Production Ramp and Stabilization Timeline
"We've passed the capstone review for rate 47, so we are now in the process of running the line at the 47-a-month rate," Ortberg said. He noted the ramp will likely require a few months of stabilization: "It'll probably take us a few months of stabilization there. ... My guess is we continue to go up in rate. It may take a little bit longer, but we're off and rolling now for the 47-a-month rate, and we should be there in the next couple months."
In Boeing's most recent earnings report last month, Ortberg said he expected the company to ramp up production of its best-selling aircraft to 47 a month this summer. On Wednesday, he said Boeing is "highly confident" it is ready to meet that rate.
Future Rate Increases and Quality Constraints
While Boeing has previously produced as many as 57 aircraft per month, Ortberg said the company cannot currently sustain that rate under its existing safety and quality processes. "We'd like to get someday to a 63-a-month rate, and so we're looking forward to that," Ortberg added. "The market will support those higher rates."
He acknowledged Boeing has "work to do" before it can further increase 737 Max output. Looking toward a 52-per-month production rate, Ortberg said that process could take at least six months, if not longer, if the newly approved rate takes effect in July or August. "I think the whole world's watching to make sure we make 47 and 52," he added.
Market Context
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