Business

Boeing cuts 787 production after new jet issue identified

Aviation giant’s shares fall 4.2% after announcement, making it biggest loser on Dow yesterday

Updated 5 years ago · Published on 14 Jul 2021 1:30PM

Boeing cuts 787 production after new jet issue identified
Boeing has identified a manufacturing issue near the nose on certain 787 Dreamliners, in the latest in a series of setbacks as it struggles to fully recover from a lengthy slump. – Wikimedia pic, July 14, 2021

NEW YORK – Boeing is cutting production on the 787 Dreamliner after identifying a new problem with the plane, the company announced yesterday in the latest in a series of setbacks as the aviation giant struggles to fully recover from a lengthy slump.

Boeing said while inspecting the 787 planes, it “identified additional rework that will be required”.

The Federal Aviation Administration (FAA) described the problem as a “manufacturing quality issue near the nose on certain 787 Dreamliners”, said an agency spokesman.

“Although the issue poses no immediate threat to flight safety, Boeing has committed to fix these airplanes before resuming deliveries,” said the FAA, adding that the company also will analyse whether 787s already in service should be modified.

The latest problem increases the headwinds facing Boeing, even as the travel industry begins to rebound from the deep downturn caused by Covid-19 and commercial airlines announce significant new plane orders.

On the announcement, its shares tumbled 4.2% to US$228.20 (RM958.33) at the close of trading yesterday, making it the biggest loser on the Dow.

The manufacturer is “reprioritising production resources for a few weeks”, and will reduce 787 production on a “temporary” basis below the current rate of five a month, which is just over a third of the pre-pandemic level of 14 per month.

Boeing expects to deliver fewer than half of the 100 aircraft currently in its inventory, while it previously expected “the majority” to be delivered this year. – AFP, July 14, 2021

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