Boeing will apply to the FAA to increase the production of 737 Max aircraft during the year for fewer losses.
Boeing plans
to apply to the US Federal Aviation Administration (FAA) for permission to increase production of the 737 Max aircraft this year, with losses in the previous months being mitigated. The step is crucial in getting the company's financial position right and meeting the increasing demand in the market.
Some production hiccups in the past with these aircraft resulted from accidents in 2019 and subsequent regulatory hurdles. The company, however, has made substantial upgrades to the safety and reliability of the aircraft and gained FAA approval. Given the rising demand for this recently modified aircraft, Boeing wants to raise production once again.
Several considerations have gone into this decision. Most paramount relates to improvements in Boeing's financial performance. The recently released financial reports have pointed to an era of profits, thus bringing to rest the company's doldrums. An uptick in production of the 737 MAX is believed to significantly augur well with revenue growth and profitability.
Alongside, the growing market is another major factor. The demand for new aircraft from the airlines has been on a steady rise for the better part of the past few years, especially for airplanes with capabilities such as the 737 MAX. More production capability will afford Boeing an opportunity to meet the airlines' demand, in turn improving their business and making a positive impact for the industry.
Flying 737 MAX also faces some problems arising from the increased production. Supply chain issues, availability of materials and employee availability will all be factors that could affect the pace of production. Boeing needs to strategize towards addressing these challenges. In setting the additional production capacity and in ensuring to utilize the existing ones to the hilt, the company will have to proceed with utmost care, keeping a focus on quality and timely production.
Another challenge is competition. There are other aircraft manufacturers in the market churning out either similar or superior aircraft. Boeing ought to gear up for competition by providing its products at the right price, quality, and reliability.
Thus, Boeing's attempt to apply for FAA permission to ramp up the 737 MAX production is a major step toward securing the company's financial position, market demand, and also toward the well-being of the industry. Hence, it is expected that Boeing shall be benefitting its customers, shareholders, and once again its world passengers. However, the company should be cautious in its dealing with supply chains, competition, and other challenges so that they ensure the success of such increases in production and to meet expectations.