Boeing Faces Production Issues; Air India, Akasa Expansion May Get Delayed

Listen to This Article

Boeing may not be able to keep up with the aircraft delivery schedules for Air India and Akasa Air,

CNBC TV18

has reported. This may hamper the expansion plans for these airlines. Reportedly, Boeing is facing some challenges in the production line of its best-seller jet 737 Max and this may cause a delay in delivery.

Earlier, Air India had placed an order for 190 737 MAX jets, which was part of its largest-ever order of 470 aircraft. Delivery of some of these aircraft was scheduled this year itself.



Akasa Air had placed an order for 72 of these planes. It has already received 19. The delivery of the remaining 53 aircraft is expected by March 2027. However, the latest development hints at a delay and may hamper the plans of the country's youngest carrier. It may also affect its ambition to operate on international routes.

The issue with the 737 MAX production



In a statement given to

CNBC TV18

, Boeing said that a third-party supplier had informed it of using a non-standard manufacturing process to install two fittings in the aft fuselage section of some 737-7, 737-8, 737-8-200, and P-8 models airplanes. This may result in "non-conformance" to the required specifications.

What is non-conformance?



Original equipment manufacturers (OEMs) operate with the support of several external vendors. They ask these vendors to supply the required parts in accordance with the set standards. Some vendors fail to comply with these standards and supply parts that do not meet the OEM's requirements. Therefore, the faulty parts need to be changed in order to ensure the safety and airworthiness of the aircraft.

However, Boeing has clarified that the planes already in service will not have an impact since this is not an immediate flight safety issue, the report added. Regardless, the planes still in the production line or in the inventory will undergo replacement. Hence, Boeing may have to reschedule its delivery arrangements.

RECENT NEWS

Monzo Looks For US Banking License

Monzo is preparing a renewed push to secure a US banking licence, four years after abandoning its first attempt when tal... Read more

Crypto Firms Push Into US Banking

America’s cryptocurrency companies are scrambling to secure a foothold in the country’s traditional banking system, ... Read more

Parallel Banking: Stablecoins Are Now Global

Parallel Banking: How Stablecoins Are Building a New Global Payments SystemStablecoins—digital currencies pegged to tr... Read more

JPMorgan Deploys AI Chatbot To Revolutionize Research And Productivity

JPMorgan has deployed an AI-based research analyst chatbot to enhance productivity among its workforce, with approximate... Read more

Private Equity And Banks: The Complex Web Of Leverage

Private equity has emerged as a significant force in the global financial landscape, driving substantial growth and inve... Read more

Financial Watchdog Highlights Unresolved Vulnerabilities In Shadow Banking Sector

The world’s leading financial stability watchdog has issued a warning about the unresolved vulnerabilities within the ... Read more