By Scott Hamilton
Dec. 4, 2020, © Leeham News: Boeing will cut the production rate for the 787 to 5/mo by mid next year, it was revealed today. Officials previously announced a rate cut to 5/mo.
The rate adjustment is further indicative of the weakness in the widebody market.
Boeing also has a large number of undelivered 787s. This is due in part to COVID, but also due to quality control and safety issues. Earlier this year, Boeing revealed safety and QC issues emerged from body joins and other factors were discovered.
Deliveries unwinding the inventory will continue through 2021, Smith said.
Smith said Boeing continues to work with regulators for certification work scope on the 777X. Boeing continues learning from the 737 MAX certification process.
Timing for 777X entry into service will ultimately be influenced by certification, Smith said.
Boeing CEO David Calhoun first mentioned the 777X certification process on the first quarter earnings call in January. The admission was a shift in Boeing’s oft-stated position that the MAX certification review would not affect 777X EIS.