Boeing MAX Wiring Issue Could Hurt March Deliveries – February Saw A Solid 51 Deliveries

Just when Boeing is gaining momentum to ramp up production of the MAX, it has to push the brakes after a “quality escape” was detected with the wiring on some aircraft. This issue will have a near-term effect on deliveries this month and quarter, but Boeing maintains the full year guidance of 500 MAX deliveries, plus 90 to 100 787s.

So what is the wiring issue all about? In a statement, Boeing says: “Our 737 program is performing rework on a group of airplanes to fix wires that have small scratches due to a machining error. This ensures they meet our quality standards before the airplanes are delivered.” The airframer stresses that the issue doesn’t constitute an immediate safety of flight issue.

Boeing didn’t say more, like when the problem was detected, where the wiring is located on the aircraft, or how many planes are involved. The statement seems to indicate that the issue was found on in-production aircraft only, but it can’t be ruled out that in-service MAX 8s and 9s are also affected. It says: “Meanwhile, all in-service 737 MAX airplanes can continue to safely operate. If action is required for the in-service fleet, we will issue updates through our normal service bulletin process.” Boeing has informed the FAA and customers and will keep them updated.

Impact
As we don’t know the exact number of affected aircraft, it is difficult to assess the impact on Boeing’s March deliveries. “Production of new 737 MAX airplanes continues at the existing rate. We expect some near-term delivery delays that may affect our deliveries in the first quarter. But given the rework timeline, we do not currently expect this issue to impact our year-end delivery total.”

In other words, MAX production continues at a rate of 42 per month, for which it got FAA permission in October last year. Until then, the rate had been 38 per month. The rate ramp was only approved after Boeing met all KPIs and quality milestones. The next step is to go to rate 47/month, which was expected some six months after ramping up to rate 42. But any rate ramps are conditional on Boeing meeting all milestones.

During the FY25 earnings call on January 27, Group CEO Kelly Ortberg said that going from 42 to 47 is not a big issue. It’s the next step to rate 52. “As you know, we’ve got a lot of inventory there. And I actually don’t think supply chain is going to be a big challenge for us in the next rate ramp from 42 to 47. But that’s where we start to normalise with the supply base in terms of burning off that excess inventory. And as we’ve said, going from 47 then to 52, that will be where we’ll have to see improved performance from the supply chain, and we’ve got time, we’re working that diligently with the supply chain. Right now, nothing says we can’t do that, but a lot of work yet ahead of us.”

Deliveries
Boeing delivered 51 aircraft in February, the highest February count since 51 in 2017. Of these, 43 were MAX, including the last MAX 8 for Shenzhen Airlines that was built before 2023 and left inventory. United Airlines took 11 MAX, Southwest and Ryanair four each.

North Charleston delivered three 787-9s, while two 777Fs, two 767-300Fs, and one 767-2C tanker left Everett. This brings the total deliveries this year to date to 97, compared with 54 for Airbus, as reported on Monday.

February saw 21 gross orders: seven MAX for unidentified customers, eight 787s (five for Astana, two for WestJet, and one for an undisclosed customer), and six KC-46 tankers for an undisclosed customer. WestJet cancelled orders for six MAX aircraft. Nine orders were moved from firm into the ASC 606 reserve, bringing net orders for the month to six aircraft.

Year to date, gross orders stand at 128, cancellations and conversions at ten, ASC 606 adjustments at zero, resulting in 118 net orders. This compares to 77 for Airbus. Boeing’s total backlog stands at 6.151 aircraft. Including 590 (473 MAX) in the ASC 606 section, that makes 6.471 unfilled orders.

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Richard Schuurman

Richard Schuurman is a freelance aviation reporter since 2016 and covers commercial aviation and the aerospace industry. He has contributed before to AirInsight between 2018-2024.

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