An executive informed the staff on Monday that Boeing intends to increase production of its best-selling plane by adding a fourth 737 Max production line.
Boeing’s massive Everett, Washington, factory will house the new line. There, the company has been reworking some of its 787 Dreamliners and making 777s and 767s. It had also been producing the 747 jumbo jet there up until December.
CNBC obtained a note from Stan Deal, CEO of Boeing Commercial Airplanes, that stated, “This undertaking is significant.” We have begun notifying and preparing our suppliers, customers, unions, and employees as we take the necessary steps to create a new line, in addition to preparing the facility.
Boeing has been eager to increase 737 Max production, but CEO Dave Calhoun has stated that the company is hesitant to increase production too quickly due to strains in the supply chain and labor.
It currently produces approximately 31 jets per month and stated last week that it aims to produce 50 per month by “2025/2026.” In a filing on Friday, the manufacturer stated that it intends to employ approximately 10,000 individuals this year.
More than 3,600 of these single-aisle aircraft are in the backlog, and airlines like United Airlines, Delta Air Lines, and Southwest Airlines are waiting for planes. Last year, Boeing received 700 orders for brand-new 737 Max aircraft.
Deal stated that Boeing still intends to operate three production lines at the 737 Max factory in Renton, Washington. He cited the need for more recent models like the 737-10, the family’s largest model, which has not yet received regulatory approval.
On Tuesday afternoon, cargo carrier Atlas Air will receive the last 747 produced by Boeing.
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