Boeing 737 Max production, deliveries hit by parts issue; stock down

Chicago, April 14, (dpa/GNA) – US plane maker Boeing has warned that production and deliveries of 737 Max, its best-selling plane, will be reduced in the near term due to issues with parts supplied by Spirit AeroSystems, reports said.

The problem comes at a time when the airlines worldwide are experiencing a rebound in operations amid the peak travel season.

The expected pause in production and deliveries, amid an industry-wide shortage of new jets following the pandemic era, is likely to hit Boeing’s plan to deliver at least 400 MAXs in 2023.

Following the news, the aerospace major’s stock fell around five percent in the extended trading on Thursday, and Spirit shares fell nearly 12%.

The issue is with two fittings that join the AFT fuselage made by Spirit Aerosystems to the vertical tail that were not attached correctly. Boeing reportedly said, “A supplier has notified us that a non-standard manufacturing process was used during the installation of two fittings in the aft fuselage section of certain 737-7, 737-8, 737-8-200 and P-8 model planes creating the potential for a non-conformance to required specifications.”

According to the company, the problem, which affects a portion of the 737 MAX family of planes is not a safety of flight issue and in-service aircrafts can continue to operate safely.

But, the issue could affect a significant number of undelivered 737 MAX aircrafts both in production and in storage, resulting in reduced 737 MAX deliveries. The exact number of planes impacted by the issue is yet to be determined.

GNA