By Julie Johnsson | Bloomberg
Boeing Co. has encountered flawed parts during production of its 787 Dreamliner and is delaying deliveries, in spite of high demand for its long-range aircraft. The news caused shares to fall by up to 3.9%, after previously having risen 9.6% this year up until close of Monday’s session.
The flaw could affect roughly 90 Dreamliners the company has already built but not delivered. Boeing will inspect each for incorrectly sized gap-fillers in the horizontal stabilizer, a tiny wing attached to the tail of a jet. Additionally, a few 787s on the final assembly line at the North Charleston, South Carolina facility will need to be repaired for the faulty gap-fillers, known as shims.
The latest production glitch is likely to exacerbate a shortage of new aircraft as airlines struggle to keep up with an increase in post-pandemic air travel. Both Boeing and Airbus SE have been dealing with supplier and labor strains that are limiting their ability to ramp up production.
Nevertheless, Boeing has stated that Dreamliner production will not be halted. It will build the next horizontal stabilizers with shims that comply with its engineering specifications. The company still intends to deliver between 70 and 80 of the widebody aircraft by year end, and has not revised its target of producing four Dreamliners a month by the end of the year.
Boeing, in collaboration with regulators, is determining whether action will be required for the in-service 787 fleet. Flawed stabilizer parts, which were discovered last week, are currently not considered an immediate flight safety issue by US regulators. As a result, emergency repairs are not necessary for Dreamliners already in commercial service with airlines.
Earlier this year, the US planemaker stopped 787 deliveries as it recovered from minor structural defects that had halted Dreamliner shipments during 2021 and 2022. To meet CEO Dave Calhoun’s aim of generating $10 billion in cash by 2025 or 2026, Boeing is targeting producing 10 Dreamliners a month by mid-decade.
