Boeing's Everett facility may soon establish a manufacturing line for the 737 MAX 10 aircraft.
Boeing intends to escalate the production of its 737 MAX aircraft by the year's end and reinitiate deliveries to China next month, as per CEO David Calhoun's announcement on Thursday.
Notably, Calhoun also disclosed plans for a dedicated production line in the Everett factory for the 737 MAX 10, the largest variant of its workhorse jet yet to gain passenger certification from the Federal Aviation Administration (FAA). Boeing initially announced the expansion of work in Washington state, including this new MAX production line in Everett, in 2023. However, production on that part of the factory floor is yet to commence.
The new line aims to expand Boeing's capacity to produce the 737 MAX, supplementing three existing MAX assembly lines in Renton. The expansion comes amid freeing up space in the Everett factory following the cessation or relocation of production for other jets, making it possible to allocate a segment of the factory for the 737 MAX 10 due to its increased complexity, which is expected to necessitate a slower rate of production.
Calhoun revealed the new Everett production line's focus on the 737 MAX 10 at a financial conference on Thursday. He mentioned that the company would use a slower production rate for the MAX 10 to ensure smooth and efficient operation of its other three MAX production lines in Renton.
The FAA has not yet certified the MAX 10 or another variant, the smaller MAX 7; however, Boeing hopes to accomplish this certification process in 2025. Until then, Calhoun emphasizes the priority is to navigate the initial rate increase for the MAX production system.
Safety regulators have imposed a cap on the production of Boeing's 737 MAX model since January 2024, following a harrowing incident involving a panel detaching midflight from an Alaska Airlines 737 MAX 9. In response, Boeing has been working with the FAA to revamp its manufacturing processes and company culture.
While increasing the production output is crucial for Boeing primarily due to its financial implications, as it recovers from setbacks such as the two fatal MAX crashes in 2018 and 2019, the COVID-19 pandemic, and a 2024 strike by Machinists, Calhoun remains cautious about the process. Boeing will initially request FAA approval to bump up production beyond the cap, followed by additional requests in increments of about five at regular intervals, provided they can confirm they are still meeting performance metrics.
Boeing is also gearing up to deliver planes to China again, a major market that temporarily halted Boeing aircraft intake due to a 145% tariff imposed by former President Trump. Following a 90-day pause in the tariff and the reciprocal tax hike imposed by China, China's major airlines are expected to resume taking Boeing deliveries next month, although some orders have been put on hold.
- The 737 MAX production expansion in Boeing's Everett factory, planned for 2023, will include a new line specifically for the 737 MAX 10, the largest variant of the company's workhorse jet.
- The Washington state government and Boeing are collaborating on this project, which aims to increase Boeing's capacity to produce the 737 MAX, supplementing the three existing MAX assembly lines in Renton.
- Technology giant Microsoft, located in Seattle, could benefit from Boeing's increased production as the aerospace industry is interconnected with other sectors like finance and the overall business environment in Washington state.
- Boeing's efforts to get the new production line up and running might also be influenced by the government, considering the reverberations that the aviation industry has on the state's economy, including the key sector of aerospace.
- The government's approval is crucial for Boeing, as the Federal Aviuation Administration (FAA) still needs to certify the MAX 10 and the smaller MAX 7 before their mass production can begin, given the recent safety concerns and incidents involving the 737 MAX model.
