Boeing announced it is upping the production of its737 MAX jet from 19 planes per month to 31 planes per month in early 2022.- The manufacturer is moving forward with the goal despite
China , one of its biggest buyers, still grounding the plane.
Boeing is upping the production of its 737 MAX aircraft from 19 a month to an ambitious 31 a month in early 2022 as the jet continues to make a comeback after a near two-year grounding, the company said in its third-quarter earnings.
The MAX is one of Boeing's cash cows and has made a strong return since its re-certification by the FAA in November 2020. American Airlines was the first to fly the jet in the US after its ungrounding, and the plane is now operated by 31 carriers worldwide with Boeing delivering over 195 MAX
Boeing is taking an aggressive approach in its MAX output. According to Bloomberg, Boeing is betting on China, its second-largest buyer, to re-certify the jet by the end of the year, which would allow the planemaker to begin deliveries in the first quarter of 2022. In a call with investors on Wednesday, Boeing CEO David Calhoun expressed optimism at China signing off the MAX but was not putting all his eggs in one basket. In an interview with CNBC, Calhoun explained if China still banned the jet by mid-2022, the company would have to reassess.
"We wouldn't cut rates, but we would not increase rates at the pace we would otherwise," Calhoun told CNBC. "I think we have plenty of time."
Of the 370 MAX jets in the manufacturer's current inventory, about a third are designated for China, Boeing's chief financial officer Brian West said. Chinese airlines cannot receive the jet without the country's regulatory approval. Boeing has plans to clear most of its inventory by the end of 2023, assuming it can deliver its stockpile to China in early 2022, reported Bloomberg.
Cowen analyst Cai Von Rumohr said in the investor meeting on Wednesday that to meet its goals, Boeing would need to deliver over 500 MAX aircraft in 2022, saying it is a "huge increase" compared to the 19 per month it is currently producing. However, Boeing China president Sherry Carbar told Reuters in September that the MAX jet's test flights at China's largest airshow "went off without a hitch." Boeing has been working with the Civil Aviation Administration of China to re-certify the jet in the country.
"We are hopeful it will happen by the end of the year," said Carbary. "It is up to
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