Daily Insight: Monday 8 April 2019: MAX Impact on the Supply Chain

News

Boeing has cut production of its 737MAX from 52 per month to 42 per month while the aircraft is grounded pending regulatory approvals for proposed changes.  Some key suppliers, like Spirit, who supply the fuselage, will continue to deliver 52 per month, and anticipates Boeing increasing its production rate once the aircraft is back in production again.

We have not yet heard from every supplier for the 737, but suspect that many will follow Spirit’s lead and continue to produce at a rate for 52 aircraft, anticipating that Boeing will attempt to catch-up on late deliveries by increasing its production rate temporarily once the aircraft is re-certified.