Boeing Restarts 737 MAX Aircraft Production

Boeing restarted its best-selling 737 MAX jetliner production last week, ending a seven-week strike by 33,000 factory workers.  

The production restart was first reported by Reuters, which states that production resumed on Friday, though Boeing has declined to confirm any media request. Federal Aviation Administration (FAA) head Michael Whitaker had previously stated that Boeing had not yet resumed production but planned to do so later this month.

For MAX production to resume, the FAA administrator stance was for Boeing to adopt an effective Safety Management System (SMS) with "policies and procedures to proactively identify and address potential operational hazards" to ensure the right inspection points are in place.

Setbacks, starting from two fatal crashes, the COVID-19 pandemic, supply chain issues, production safety concerns, increased regulatory scrutiny, and the IAM union strike, have hindered Boeing’s plans to increase monthly production.

Resuming production is crucial for Boeing’s recovery, as it has about 4,200 orders for the jetliner from airlines eager to meet global demand.

Key Considerations for Boeing

• Production Challenges: Despite the restart, Boeing faces regulatory limitations imposed by the FAA, which currently caps production at 38 aircraft per month due to safety concerns stemming from a January incident where a door panel detached from an Alaska Airlines (AS) 737 MAX 9 during flight. Analysts predict that Boeing will average only 29 aircraft per month in 2025, well below its target of 56 per month.

• Safety and Quality Control: The FAA has emphasized the need for Boeing to enhance its quality control measures before any increase in production capacity can be considered. This includes implementing new training and parts management systems to prevent issues like the one that occurred with the Alaska Airlines flight.

• Strategic Importance: Restarting the 737 MAX production line is vital for Boeing's financial recovery, especially after facing significant setbacks including two fatal crashes and the COVID-19 pandemic. The company is working to restore trust among customers and regulators alike.