Boeing Co. (BA) has recently projected a slower increase in the production and delivery of its 787 widebody jets due to supplier shortages.
In a memo sent to employees at the South Carolina facility, 787 vice president and general manager, Scott Stocker, disclosed the situation. Boeing remains committed to gradually raising its production rate to meet the strong demand, despite the challenges.
The memo acknowledged ongoing supplier shortages for critical components and notified customers of the expected slower increase in production and deliveries.
The Federal Aviation Administration (FAA) is closely monitoring Boeing’s challenges in procuring parts and maintains regular communication with the company. The agency’s primary concern is to ensure the dispatch of safe and compliant airplanes from the factory.
Boeing, set to release its earnings on Wednesday, faces scrutiny over the manufacturing of its 777 and 787 widebody jets following allegations raised by company engineer Sam Salehpour at a U.S. Senate hearing last week. Furthermore, the company’s production of its 737 MAX single-aisle jet in Washington state has also experienced a significant decline due to heightened factory inspections by U.S. regulators and slower assembly line operations to complete outstanding work.
The challenges come amidst 32 whistleblower complaints filed against Boeing over the past three years, with allegations of employer retaliation being investigated by the U.S. workplace safety regulator, raising significant safety concerns for the company.
Investors are closely watching Boeing’s upcoming Q1 earnings release to assess whether the company’s performance can mitigate the impact of recent scandals that have affected its public image.
