Boeing Cuts 787 Production, Takes Another 737 MAX Hit

July 15, 2021


Boeing is having a another tough day as they announced that 787 Dreamliner production is being cut after finding another structural defect, and one major customer has partially canceled an order for 737 MAX planes likely because of COVID-19 pandemic recovery concerns, according to a report by Reuters.

Boeing is suffering from quality problems structurally with the 787 Dreamliner. For Boeing, this means that they will deliver fewer than half the planes than expected this year and they are still assessing to see how costly these flaws might be in order for them to fix it properly.

"To us this is more significant than the cut to the delivery forecast, as it ripples down through the supply chain," Vertical Research Partners analyst Robert Stallard said in a client note.

"The supply chain cannot just be turned on and off like a switch," Stallard added.

flydubai Cuts 737 MAX Order by 65 Planes

United Arab Emirates airline flydubai announced on Tuesday that they will cut 65 of their total order for 251 737 MAX jets with Boeing. The likely reason is Covid economic concerns as carriers around the globe work to bring their sales back towards levels than can support capital expeditures.

Boeing’s 737 MAX and 787 planes have been dogged by electrical defects, as well other issues since late last year. Boeing halted deliveries of the jet in May for a second time after they initially stopped handing over this model in late 2020.

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