Boeing HQ
Our continuing Farnborough coverage can be found at AirInsight.com. while our Daily Boeing, highlights the key stories apart from airshow news.
Today’s key story focuses on the completion of the anti-ice system redesign for the 737 MAX 7. That designed will be reviewed in detail by the FAA and could lead toward certification of the MAX 7 in late 2025, as this was a last step before moving to flight test. As flight testing typically requires 12-18 months, and with the FAA becoming more strict on certification protocols, we expect that 737 MAX flight test programs will lean toward the higher side of the estimate. That would put certification into early 2026.
Stephanie Pope, who heads Boeing’s commercial aircraft division, provided a briefing prior to the opening of the Farnborough show, and indicated that Dave Calhoun’s successor will be dealing with the big issues, which will await his or her arrival. The leadership void during the interim period became apparent as Pope stuck to a script and failed to address the strategic issues facing the company, instead focusing on safety, quality, and schedule as non-competing priorities for the business. As higher speeds were one of the factors in quality problems, I will politely disagree. Another story highlighted here comments on how 737 production is getting back on track.
Another story focused on what’s at stake for the duopoly at Farnborough, and how Boeing wants a “tailored presence” at the show highlighting safety, quality, and meeting client obligations. Translate that to Boeing is scaling back and not bringing airplanes to the show.
A story focused on parked airplanes and parking spaces reflects the still high levels of inventory at Boeing, currently more than 200 aircraft including 737 MAX and 787s. Managing that inventory and moving those airplanes as soon as possible is important for Boeing, who have delivered a number of aircraft built between 2017 and 2019 that were in inventory to airlines in 2024. As Boeing receives a large portion of its cash from customers on delivery of the aircraft, this is an important financial lever for the company that it hopes to better manage in 2024.
Speaking of finance, another story speaks to fixed price contracts driving new losses for Boeing’s defense business in the second quarter. Boeing will release its second quarter financials later this week.
Links to today’s key stories follow:
- Boeing settles on 737 MAX 7 anti-ice system redesign, moves toward flight testing – Flight Global
- Boeing Commercial boss sticks to message, leaves big issues to next CEO – Seattle Times
- Farnborough: Pope says Boeing 737 production getting back on track – Forbes
- FIA2024: The stakes of the Boeing-Airbus duopoly – Airways
- Boeing’s most relatable problem: finding a parking spot – Yahoo
- Fixed price contracts to drive new losses for Boeing’s defense arm in second quarter: Exec – Breaking Defense
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