234win Boeing expects post-strike output recovery to take several weeks

Boeing workers wave picket signs as they strike after union members voted to reject a contract offer, Sunday, Sept. 15, 2024, near the company’s factory in Everett, Wash. (Associated Press Photo/Lindsey Wasson)

New York, United States — Boeing said Tuesday that it delivered 14 aircraft in October, but production will likely take several weeks to return to normal after a worker strike that hit operations at two major assembly plants.

In the first 10 months of the year, Boeing said it delivered 305 airplanes, down from 405 in the same period last year.

Article continues after this advertisement

The company also received 63 gross orders in October.

FEATURED STORIES BUSINESS BIZ BUZZ: Trouble at the PSC BUSINESS PH ʼ24 tourism arrivals forecast cut to 6M BUSINESS Stiff airline competition drags PAL performance

READ: Boeing union says approves contract, ending over 7-week strike

About 33,000 workers in the US Pacific Northwest walked off the job on September 13 after overwhelmingly rejecting an initial contract offer, sparking the costliest strike in the United States this century.

Article continues after this advertisement

After a stoppage of more than seven weeks — costing the aviation giant billions — the International Association of Machinists and Aerospace Workers (IAM) District 751 said it approved a new contract proposal.

Article continues after this advertisement

Boeing staff could return as soon as November 6 and must be back on the job by November 12, according to the IAM.

Article continues after this advertisement

Production of the company’s best-selling 737 MAX, as well as the 777 jet, were halted by the strike. Production of the 787 Dreamliner carried on at a plant on the east coast of the United States.

Boeing said Tuesday that it would be several weeks before it fully restarts airplane production, given that restarting a manufacturing line is a multi-stage process.

Article continues after this advertisement

The company added that it was working on safely restarting operations in Washington and Oregon.

New customer

Boeing’s gross orders for October included 40 737 MAX 8 aircraft for Avia Solutions Group, in a transaction valued at about $4.9 billion.

Avia’s first firm order with the aviation giant comes with an option to add another 40 jets later, Boeing and Avia said in a statement Tuesday.

“We have committed to a strategic approach of expanding our capacity to meet our customers’ seasonal needs, and our first order with Boeing is a key pillar of this,” said Gediminas Ziemelis, chairman of the aviation services group.

The versatile 737 family is Boeing’s best-seller. The 737 MAX 8 can seat 162 to 210 passengers — with a range of up to 6,480 kilometers (about 4,000 miles).

The US Pacific Northwest strike had exacerbated the company’s already precarious outlook after a January incident in which a fuselage panel blew out mid-flight on a 737 MAX operated by Alaska Airlines.

Although there were no major injuries, the episode plunged Boeing back into crisis after two previous fatal MAX crashes, with US air safety regulators limiting production output until the company shows it has gotten its house in order.

Boeing announced a management shakeup in March that included the exit of CEO Dave Calhoun, who was replaced in August by former Rockwell Collins chief Kelly Ortberg.

But as the strike dragged on, the stoppage threatened Ortberg’s turnaround efforts.

With the strike in the rearview mirror, Boeing has overcome two major overhangs, after a successful push to raise more than $20 billion in capital, analysts earlier noted.

Your subscription could not be saved. Please try again. Your subscription has been successful.

Subscribe to our daily newsletter

SIGN ME UP

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

All eyes are now on Boeing’s prospects for increasing commercial plane production.234win

READ NEXT Bitcoin neared $90,000 in a new record high Bloomberry income down 58% on Solaire North costs EDITORS' PICK DFA coordinating with US over detention of Garma, daughter Hints point to Belle Mariano singing Filipino version of ‘Moana 2’ track Regulators seize control of cash-strapped EQworld 8 movies to watch when you’re too down to study Manila Water champions sustainability with climate change policy MOST READ PH summons Chinese envoy to protest Bajo de Masinloc baselines Duterte defies VP Sara’s appeal to excuse him from hearing Bank documents show Duterte’s drug war was ‘fake’ — Trillanes La Mesa Dam at 'critical' level as tropical storm Pepito nears Follow @FMangosingINQ on Twitter --> View comments

• 234win
• Boeing
• expects
• post-strike
• output