Boeing’s Deal Promises Supply Chain Recovery But No Specifics

PARIS–Boeing is “seeing elements of recovery” in its supply chain as it moves toward a return of normality and eventual increases in its production rates, Boeing Commercial Airplanes president and CEO Stan Deal said June 18.

Speaking the day before the opening of the Paris Air Show, Deal noted that Boeing had set up a working group with CEOs of supply chain companies to restore supply pipelines that have been badly constricted by the pandemic, labor and materials shortages, or simply poor planning by OEMs that failed to prepare for the surge in travel demand.

At the IATA AGM in Istanbul earlier in June, which Deal attended, the delays in delivery of new engines and aircraft, as well as the shortage of critical parts, was a major talking point, with airline CEOs voicing their frustrations. IATA chief economist Marie Owens-Thomsen said at one point that an aircraft delivered six months late was now considered to be on time.

Deal said in Paris that the new partnership was going well. The intention was not for it to be “a finger-pointing exercise” but to work together to iron out kinks, he said. But many airlines would consider the problems to be more than kinks when they limit the ability to grow and meet demands for travel.

Boeing plans to increase its 787-construction rate to 10 a month in 2025-26, and “the good news is that the supply chain is capitalized to 14 a month,” Deal said. 

When it comes to next-generation aircraft, Boeing is in talks with all the major engine manufacturers regarding powerplant choice. “We’re going to be open-minded. Most of our customers today say, ‘give us a choice.’”

Boeing has also integrated members of its team with its suppliers to help ensure a smooth recovery to normality, EVP Boeing Global Services Stephanie Pope said. 

Meanwhile, reworking of 737 MAXs to resolve problems with the vertical stabilizer brackets is going well, Deal said, and the manufacturer is eyeing up the next increase to 38 aircraft a month. That rate increase will be “pretty soon,” he said, while declining to give a precise date.