
Audio By Carbonatix
Boeing is bringing retired workers back on the job as the world’s largest planemaker tries to fix delays at its 737 jetliner plant outside Seattle, a union official said.
The snarl at its plant in Renton, Washington, triggered by shortages of engines and fuselages as Boeing sped production to record levels in June, is likely to hurt third-quarter results and threatens its goal to boost build rates again in 2019, some analysts said after meetings in the Seattle area last week.
Single-aisle aircraft like the hot-selling 737 and Airbus A320 families are the cash cows of the world’s two largest aircraft manufacturers.
Investors will get a peek on Tuesday at how far behind Boeing is when it releases its order and delivery tallies for August, a month after deliveries fell to the lowest level in years.
Deliveries are crucial to planemakers because that is when airlines pay most of what they owe for the aircraft.
Boeing started hiring retired mechanics and inspectors on a temporary basis after reaching an agreement with the International Association of Machinists and Aerospace Workers on Aug. 15, union spokeswoman Connie Kelliher said.
Boeing had a similar agreement with the union last autumn following a round of voluntary layoffs, Kelliher said.
Boeing spokesman Paul Bergman said the company was dedicating additional resources to the Renton site “to ensure timely deliveries to our customers.”
Boeing has already deployed about 600 employees and new hires to Renton in recent weeks to help fix delays, analysts said. It was not clear how many retired workers Boeing intends to hire.
2019 SPILLOVER?
About 50 semi-finished 737s were scattered around the Renton plant last week, analysts said, several times the number of semi-finished aircraft Reuters reported in July.
Boeing largely attributes the snarl to shortages of fuselages from Wichita, Kansas-based Spirit AeroSystems Inc and engines from CFM International Inc, a venture between France’s Safran and General Electric Co.
“We are working closely with our suppliers Spirit and CFM as they track toward recovery, as well as our customers,” Bergman said. “Our team has been mitigating supplier delays, and our factory continues to build 52 airplanes per month.”
CFM is working to fix delays by year-end, the GE-Safran venture said. Spirit did not immediately respond to a request for comment.
Among airlines with large 737 fleets, American Airlines Group Inc has seen slight delays on a small number of 737 MAX deliveries, while No. 4 carrier Southwest Airlines Co sees “minor changes” on future deliveries, but the delays have not disrupted operations, company representatives said.
Aircraft leasing company Air Lease Corp was still seeing 737 delivery delays of “a month or less,” spokeswoman Laura Woeste said.
Latest Stories
-
Mahama outlines plans to elevate Kwahu Business Forum
5 minutes -
Ghana’s disinflation drive came at significant cost – BoG Governor
15 minutes -
Vice President engages Anlo traditional authorities as Queenmothers push for women’s empowerment
21 minutes -
Prudential Life settles GH¢100,000 medical bills under its PRUCares Valentine Experience Initiative
6 hours -
Wa West Picnic: Peter Lanchene Toobu champions peace, health and unity in landmark celebration
7 hours -
Dr Mensah Market flooded after downpour in Kumasi
7 hours -
Armed men reportedly storm Adjen Kotoku Onion Market amid tensions
8 hours -
Tecco Mensah writes: Why football fans must look beyond statistics
8 hours -
Police recover stolen Honda CR-V in Kumasi within 48 hours
9 hours -
Apetorku Gbodzi 2026 Festival opens in Dagbamete with development focus
9 hours -
President Mahama arrives in Lyon to co-chair One Health Summit
9 hours -
Beverly View Plus Hotel draws crowds amid coastal Easter rush in Volta
9 hours -
Maiden Zongo Festival held in Wa amid calls to tackle drug abuse among the youth
10 hours -
FDA warns of fake HIV test kits on Ghanaian market
10 hours -
Africa urged to build resilient health systems as donor support tightens
10 hours