Boeing intends to deliver a majority of its 450-strong 737 Max stockpile within one year of resuming deliveries of the still-grounded jet.
Speaking during the company’s second-quarter earnings call on 29 July, executives stress that Boeing will prioritise delivery of aircraft already produced, clearing that inventory before focusing on ramping 737 production.
“We will continue to focus on relieving the inventory… That informs the production rate,” says Boeing chief executive David Calhoun.
Chief financial officer Greg Smith adds that Boeing expects to deliver “the majority” of its inventory of stored 737 Max within a year of when resuming deliveries.
However, he says some of those deliveries will stretch beyond one year.
He confirms the inventory stands at “approximately” 450 jets. Boeing accumulated those aircraft because it continued manufacturing the Max through most of 2019 despite being unable to deliver the jets due to the grounding.
The executives’ comments follow Boeing’s announcement, also on 29 July, of a slight delay to its 737 Max production ramp-up plan.
The company now expects to increase 737 production to 31 jets monthly by “the beginning of 2022.”
Earlier, Boeing had said it would hit the 31-monthly rate by 2021.
The company resumed 737 Max production in May after a five-month production halt. It is now producing the jet at an unspecified “low” rate.
Headline updated on 30 July to clarify that Boeing intends to delivery a “majority” of its stored 737 Max within the first year of resuming deliveries.