Boeing Co. (NYSE: BA) has a new titanium defect it’s dealing with on its new Dreamliner airliner that’s still in the production phase. This defect is just one of the many production issues that have drawn increased regulatory scrutiny and delayed the delivery of aircrafts.
According to some people close to the matter, certain titanium parts on the aircraft are not as strong as they should be on a 787 plane. This discovery is just but one of the many hiccups that have left the aircraft maker stuck with over $25 billion of aircraft merchandise in its inventory.
What Does this Mean for the Company?
This finding shows that Boeing is still trying to rectify the issues they have in production. This is despite an almost 24-month push by David Calhoun, the Chief Executive Officer, to restore the company’s reputation when it comes to building airplanes.
Additionally, the FAA (Federal Aviation Administration) is looking into the quality controls Boeing has in place. Boeing acknowledged it had not solved the issue regarding the waste that comes from the production process.
Company Statements
A spokesman from the company said that Boeing is trying to improve its production processes as well as raising its standards, even amidst all these operational issues. He said:
We have strengthened our focus on quality and constantly encourage all members of our team and supply chain to raise any issues that need attention. When issues are raised, that is an indication that these efforts are working.
Production Issues
Over the past few years, the company has had to deal with many production problems regarding its airplanes. This is plus the two 737 crashes of 2018 and 2019. These production issues have prompted regulators in the United States to ramp up their oversight. According to people that know this situation well, apparently, the predicament is feeding itself.
Over the past 24-months or so, Boeing regulators and engineers have been in search of issues. Any new problems that arise eventually invite more scrutiny. This adds to the things that need fixing. Boeing’s 787 Dreamliner complications come as the Federal Aviation Administration investigates specific quality-control issues across the company’s commercial aircraft unit.
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