The FAA agrees that Boeing’s production system is ready to make another 737 rate break.
Boeing has already started running its 737 production system at a new higher rate of 47 jets monthly, though it does not expect to stabilise at that pace for several months.
That is according to Boeing chief executive Kelly Ortberg, who adds that Boeing recently completed a “capstone” review of its readiness to hit rate 47 at its 737 assembly site in Renton, up from a prior rate of 42 jets monthly.
Boeing shared the results of that review with the Federal Aviation Administration, which now says it agrees Boeing is ready to make the jump.
“We 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 on 27 May during an investor conference hosted by financial firm Bernstein. “It will probably take us a few months to stabilise there… We are off and rolling now for the 47-a-month rate.”
The company will continue to hike 737 output in five-aircraft increments, with each break coming about six months after the last, says Ortberg. Boeing eventually aims to produce 63 737s monthly.
The company is eager to accelerate production amid intense demand following several years of depressed output due to the 737 Max grounding and a string of quality and safety issues.
The FAA had in January 2024 capped Boeing’s 737 production at 38 jets monthly in response to those problems.
The agency no longer requires that Boeing obtain regulatory approvals for 737 production rate hikes but says it has reviewed Boeing’s readiness.
“FAA supports Boeing’s production rate increase from 42 to 47 aircraft per month,” the agency says. “FAA safety inspectors conducted extensive reviews of Boeing’s production lines to ensure this production rate increase will be done safely.”
CAPSTONE REVIEWS
As it has historically done, Boeing continues to complete internal “capstone” reviews ahead of rate increases. It does so to evaluate its own preparedness, and shares results with the FAA.
Boeing started increasing 737 production to rate 47 before conducting the capstone review, “to make sure that we’re ready to actually go to that rate”, Ortberg says.
The company has also added slack to its operation – “blanks”, Ortberg says – to ensure it can catch up if any production area falls behind.
The latest production ramp will allow Boeing to further use up stockpiles of components it and suppliers accumulated amid several years of slower-than expected 737 production.
Ortberg says inventory levels remain more elevated than Boeing would like, but he expects supplies will reach “equilibrium” with production when Boeing reaches rate 52. At that point, Boeing could face some “strain” among suppliers working to ramp output.
‘NORTH LINE’
Boeing’s plan to reach rate 52 also involves the company bringing online its new “North Line” – a second 737 production site, in Everett. While the company says the North Line will eventually be capable of producing all 737 Max models, it will initially assemble only Max 8s, 9s and 10s, not Max 7s.
Boeing has said that this summer it intends to begin operating the North Line for the purpose of evaluating and qualifying the operation.
Before the 737 Max grounding Boeing had aimed to produce 57 monthly 737s in Renton, but its new “safety and quality processes” preclude that site from returning to such a pace, Ortberg says.
“We’d like to get some day to 63 a month rate,” Ortberg adds. “The market will support those higher rates. We just got to get ourselves and our supply chain in a position to do that.”
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