Boeing Will cut the half 737 MAX Deliveries Targeted For 2021

Boeing has decreased its ambitious plans among the 737 Max deliveries, the plan was that they were able to deliver 450 aircraft. The airline now only expects to deliver about half of that, or around 225 aircraft by the end of 2021, with the remaining being delivered in 2022.

Boeing has about 450 737 MAX planes already built and in storage. Greg Smith, Executive Vice President and Chief Financial Officer at Boeing, said the following

“We currently have approximately 450 737 MAX aircraft built and stored in inventory. We expect to have to remarket some of these aircraft and potentially reconfigure them, which will extend the delivery timeframe. We now expect delivery of about half of the aircraft currently in storage by the end of next year, and the majority of the remaining in the following year. Delivery from storage will continue to be our priority after assisting our customers with their return to service. We expect the 737 MAX delivery timing, along with the production rate ramp up profile, to continue to be dynamic, as they will ultimately be dictated by the pace of the commercial market recovery, which has been slow and remains uncertain.”

Why did Boeing do this breaking?

First of all, Boeing needs to work on the 737 Max aircraft, Some customers, such as Jet Airways, no longer fly passengers and do not require the MAX jets built and parked. In addition Boeing need to find a new home for those aircraft and If Boeing does find new homes for some planes, that means those aircraft have to go through an interior and exterior redo painting both will add a time lag to the delivery process.

The second thing is that the ongoing crisis has slumped the financial status of the airline industry and slow it down.

The third problem is with china airlines, Many 737 MAX aircraft currently built are expected to head over to Chinese airlines, but china unsure about when it will re-certify the 737 Max.

Boeing has spent a lot of time and effort working on a return to service for the plane. CEO Calhoun stated the following:

The company had been rehearsing with regulators about the process of certifying each aircraft before delivery, and so delays in certifying each plane were not considered in slashing the delivery outlook for the MAX.

Now Boeing has resumed its manufacturing on the 737 MAX but in a low rate and at the the end of the year they have planned to increase the rate by the beginning of 2022 and the first delivery is expected to be in 2021.