© Reuters. FILE PHOTO A Plane Boeing 7777X performing during Dubai Airshow in Dubai (UAE), November 14-2021. REUTERS/Rula Rouhana/File PhotoEric M. Johnson and Abhijith G. Ganapavaram
(Reuters) – Boeing (NYSE) Co announced Wednesday that it would stop production of 777x from 2023 because certification issues and weak demand have caused problems. It also disclosed an additional $1.5 billion in unusual costs associated with the program.
The planemaker submitted to the U.S. regulator a certification plan for its 787 Dreamliner program. This is a first step towards resuming deliveries that were halt almost a year ago by an industrial accident costing $5.5 billion.
Boeing’s financial well-being is dependent on the 787 Dreamliner and 737 MAX.
The 787-Jets are being produced at a slow rate, while the company inspects for and fixes structural problems under intense regulatory scrutiny.
Boeing’s Chief Executive David Calhoun announced that the company has completed “the required work in initial aircrafts” and that it is now conducting checks flights. The news should encourage airlines to fly longer routes as a result of delivery delays.
Calhoun didn’t specify when Boeing 787 deliveries would be resumed on Wednesday. Reuters said last week that it advised key parts suppliers and airlines that 787 deliveries would be resumed in the second quarter of 2011.
Boeing confirmed that the transfer of the first 777X plane to Boeing was delayed until 2025. However, it said that the company remains optimistic about the program.
Calhoun stated that Boeing will use the 777-9 production pause to increase its 777 freighter capability starting in 2023.
Reuters reports that Boeing was warned by the Federal Aviation Administration last month about the “outdated” certification schedules of the 737 MAX 10 & 777X. They no longer accurately reflect program activities.
In its earnings report for the first quarter, the planemaker stated that it is on track to produce positive cash flow in 2022 due to increased deliveries of 737 MAX aircraft.
