{"id":57181,"date":"2025-01-30T06:48:08","date_gmt":"2025-01-30T06:48:08","guid":{"rendered":"https:\/\/peraltafinancing.com\/airbus\/boeing-sees-achieving-pre-max-grounding-production-rates-8-years-later\/"},"modified":"2025-01-30T06:48:08","modified_gmt":"2025-01-30T06:48:08","slug":"boeing-sees-achieving-pre-max-grounding-production-rates-8-years-later","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=57181","title":{"rendered":"Boeing sees achieving pre-MAX grounding production rates 8 years later"},"content":{"rendered":"


\n<\/p>\n

\n

Subscription Required<\/strong><\/p>\n

By Scott Hamilton<\/strong><\/p>\n

\"\"Jan. 30, 2025, \u00a9 Leeham News<\/strong>: When Airbus began to record more orders than Boeing in the early 2000 decade, Boeing\u2019s CEO dismissed the shift.<\/p>\n

Orders didn\u2019t matter, sniffed Phil Condit. Only deliveries mattered. The statement ignored the obvious: if you didn\u2019t have orders, you wouldn\u2019t have deliveries.<\/p>\n

For much of the past two decades, Airbus has been delivering more airplanes than Boeing. According to both companies’ forecasts, this trend will continue in the heart of the market in the coming years by a wide margin.<\/p>\n

Deliveries of the 737 MAX are key to Boeing\u2019s financial recovery. The cash flow and profits from the MAX line will drive Boeing\u2019s ability to develop a new airplane. (This does not ignore the necessity of Boeing\u2019s defense unit to get its financial house in order.)<\/p>\n

Kelly Ortberg, Boeing\u2019s CEO, appeared on the financial news network CNBC this week and said Boeing hopes to return to a production rate of 38\/mo in the second half of this year.<\/p>\n

\u201cI’m not going put a date on when we need to get to rate 38 and get approval for the FAA to go beyond,\u201d he said. \u201cIt’s more important that we do this right; we have a stable production system, we get through that, and I expect by the second half of the year, we’ll have that approval, and we’ll be moving to a higher production rate.\u201d<\/p>\n

Rate breaks in 5 every six months<\/strong><\/h5>\n

Ortberg added, \u201cWell, we’re planning to be at about 38 a month for the balance of this year, ramping up, and we’ll go in five-step increments every six months after that. On 787, we’re at five a month rate, moving to seven a month rate\u2026hopefully, that’s in the next quarter or so.\u201d<\/p>\n

The 737 data can be extrapolated to suggest Boeing will return to the pre-MAX grounding rate (52\/mo) in the first half of 2027. (Others are skeptical, and the ramp-up appears aggressive.) This would be eight years<\/em> after the MAX was grounded on March 10-13, 2019, for what turned out to be 21 months.<\/p>\n

Boeing was on its way to a rate of 57\/mo by the end of 2019. Under the Boeing plan, this rate won\u2019t be achieved until the end of 2027. If Boeing still believes demand supports this rate, a higher rate of 63\/mo that was planned pre-grounding would follow in 2028.<\/p>\n

Airbus will also increase its production rate. Production and delivery forecasts appear to place Boeing at a permanent distant second to Airbus as long as the competitors are the A320neo and 737 MAX.<\/p>\n<\/p><\/div>\n\n","protected":false},"excerpt":{"rendered":"

Subscription Required By Scott Hamilton Jan. 30, 2025, \u00a9 Leeham News: When Airbus began to record more orders than Boeing in the early 2000 decade, Boeing\u2019s CEO dismissed the shift. Orders didn\u2019t matter, sniffed Phil Condit. Only deliveries mattered. The statement ignored the obvious: if you didn\u2019t have orders, you wouldn\u2019t have deliveries. For much […]<\/p>\n","protected":false},"author":1,"featured_media":21981,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12027],"tags":[7757,12576,15024,32446,10166,11291,16699,1003],"dealstore":[],"offerexpiration":[],"class_list":["post-57181","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-airbus","tag-achieving","tag-boeing","tag-grounding","tag-premax","tag-production","tag-rates","tag-sees","tag-years"],"yoast_head":"\nBoeing sees achieving pre-MAX grounding production rates 8 years later - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=57181\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Boeing sees achieving pre-MAX grounding production rates 8 years later - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"Subscription Required By Scott Hamilton Jan. 30, 2025, \u00a9 Leeham News: When Airbus began to record more orders than Boeing in the early 2000 decade, Boeing\u2019s CEO dismissed the shift. Orders didn\u2019t matter, sniffed Phil Condit. Only deliveries mattered. The statement ignored the obvious: if you didn\u2019t have orders, you wouldn\u2019t have deliveries. 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