Boeing Co. has encountered additional errors related to holes drilled in the fuselage of its 737 Max aircraft, posing a setback that could further impede deliveries in a program already under regulatory scrutiny due to quality issues.
The recent manufacturing flaw, originating from a supplier, necessitates rework on approximately 50 undelivered 737 jets to rectify the flawed rivet holes, as stated by Boeing’s commercial chief, Stan Deal, in a communication to staff.
Although Deal did not disclose the identity of the contractor responsible, a spokesperson for fuselage supplier Spirit AeroSystems Holdings Inc. acknowledged the issue and affirmed plans for necessary repairs.
Boeing’s shares experienced a 2.1% decline as of 9:43 a.m. in New York, compounding a year-to-date drop of 20% before Monday’s trading session. Spirit, scheduled to release its earnings report on Tuesday, saw a 3.9% decline.
According to Deal’s internal memo reviewed by Bloomberg News, the additional time required for inspections and repairs could potentially delay deliveries of planes in the near term. However, Deal did not specify if any actions would be needed for the in-service 737 fleet.
Deal emphasized in his communication, “This is the only course of action given our commitment to deliver perfect airplanes every time.”
The latest defect adds to a series of manufacturing challenges at Boeing, including a severe panel blowout incident on an Alaska Airlines 737 Max last month. This prompted heightened scrutiny from the Federal Aviation Administration (FAA) on Boeing’s manufacturing and supplier processes, resulting in a production cap on 737 aircraft until quality standards improve.
The latest problem is part of a string of glitches traced back to Boeing’s former aerostructures unit. A drilling issue involving an aft pressure bulkhead from Spirit Aero delayed 737 Max deliveries last year. In a separate incident, problems with tail-fin fittings affected production in 2023.
In addressing the recent setback, Deal mentioned that a worker at a Boeing supplier flagged concerns about two holes in the fuselage not meeting specifications precisely. Although he clarified that the issue does not pose an immediate flight safety risk, Deal acknowledged employee frustration regarding incomplete work at suppliers or Boeing factories affecting aircraft production lines. As a response, Boeing has instructed a major supplier to halt shipments until all work is satisfactorily completed, despite acknowledging that this may affect production schedules.
“While this delay in shipment will affect our production schedule, it will improve overall quality and stability,” Deal concluded.