Boeing NYSE:BA, a U.S. aircraft manufacturer producing commercial jetliners, has formally opened its fourth 737 Max assembly line at its Everett factory near Seattle as the company prepares to increase production against a growing backlog. The new line, located inside a facility mainly used to build the 777, 767 and upcoming 777X widebody aircraft, will initially operate at a low rate and employ about 1,000 workers. Boeing senior director Jennifer Boland-Masterson said the company plans to address potential production issues before accelerating output, although she did not provide a timeline for the expansion. Boeing is expected to add more workers as activity on the line increases.
The additional capacity could play an important role in Boeing's effort to raise monthly 737 Max output after the Federal Aviation Administration limited production to 38 aircraft per month in 2024 following a near-catastrophic accident and a broad change in senior leadership. Chief Executive Officer Kelly Ortberg said in May that Boeing had received authorization to increase output to 47 planes per month, while the company eventually aims to reach 63. Higher production may help Boeing reduce debt, improve its financial position and challenge Airbus, a major European aircraft manufacturer, in the profitable single-aisle aircraft market. Airbus has also faced supply-chain difficulties while attempting to increase production of its competing A321neo model to 75 aircraft per month, and workers in Spain began a strike this week over working conditions during recent years.
The first aircraft moving through Boeing's new line is a 737 Max 10 intended for WestJet, a Canadian airline, although the model has not yet received certification. Boeing has added extra workstations to support more complicated cabin installations, including lie-flat seats being introduced by airlines seeking premium passengers, without disrupting the rest of the production line. About half of the initial workforce has transferred from Boeing's main 737 Max facility in Renton, while the remaining employees are new hires receiving training at that factory. The measured launch suggests Boeing is expanding capacity cautiously as the company and Airbus continue to manage labor and parts shortages that have persisted since the coronavirus pandemic.