Boeing Says It Will Meet Target For 737 MAX Production, Stock Dips Anyway
Concerns have been raised regarding Boeing’s ability to stay on target when it comes to the delivery of the highly anticipated 737 MAX commercial aircraft. This follows after a report surfaced that one of Boeing’s suppliers, GKN Aerospace Astech Engineered Products, Inc., may not be able to produce a specific component of the aircraft at the rate Boeing requires in order to stay on track of the delivery schedule.
A slight concern causes a slight dip
Wichita Business Journal reports that this was enough to cause shares of Boeing to go down slightly to $131.51, from $137.02, reflecting concerns in the industry regarding the possible delay of what is being called Boeing’s fastest jetliner production. The Wall Street Journal reports that the delay may be caused by the inner wall of the thrust reverser, that has been made from titanium honeycomb to be able to save weight, fit into the available space and at the same time, withstand the engine’s high temperatures.
Moreover, trouble may have been brewing regarding this since late last year. Spirit AeroSystems, who makes about 70% of the 737 structure, has disclosed in its SEC filing back in September 2014 that it was doing work transfer with regard to the 737 MAX titanium inner-wall back to Boeing. Moreover, under the work transfer, Boeing would be responsible for delivering (or arranging the delivery of) the said titanium inner walls with respect to Spirit AeroSystems’ on-dock dates.
Spirit AeroSystems marks 737 MAX milestone
Recently, Spirit AeroSystems has announced that it has just completed the very first Boeing 737 MAX fuselage, along with the said aircraft’s other components. The company is actually responsible for the Boeing 737’s fuselage, pylon, thrust reverser and engine nacelle.
The 737 MAX is expected to be very efficient
Boeing says the 737 MAX 200 can guarantee 20% lower fuel use per seat, making air travel a whole lot more affordable. It is also 8% lower when it comes to operating costs when compared to its main competitor. Moreover, it also features the new Boeing Sky Interior.
Several airlines await the 737 MAX
A lot of major airlines have already placed their orders for Boeing 737 MAX, including American Airlines, Southwest Airlines, United Airlines, WestJet, Virgin Australia, Ryanair, SilkAir, Jetlines, Turkish Airlines, Garuda Indonesia, Ethiopian Airlines and GE Capital Aviation Services.
Spirit AeroSystems says the assembly of the first 737 MAX is expected to be complete by the end of 2015 while the first delivery to the customers is scheduled during the third quarter of 2017.