“Boeing has a parking problem,” writes The Wall Street Journal (July 22, 2024). Parts shortages and other issues have left the jet maker with about 200 fully or mostly finished airplanes sitting in airfields, outside plants and in an employee parking lot. Some of the planes are awaiting interiors; others need engines. Dozens more are awaiting delivery to China.
Unable to fly, the planes present a host of logistical challenges. Planes sitting around too long may need software or other updates. Moving unfinished jets is tricky, especially if the part they are missing is the engine, as is the case with a handful of 777 freighters.
The predicament comes as the jet maker grapples with production slowdowns and regulatory scrutiny in the wake of January’s near catastrophe on an Alaska Airlines flight. Boeing has delivered 175 planes through June of this year, compared with 266 through the first half of 2023.
This isn’t the most dire parking predicament Boeing has faced in recent years. Following the grounding of Boeing’s bestselling 737 MAX due to crashes in 2018 and 2019, the company had about 450 of those planes stashed in its facilities. At another point, it had more than 100 787s parked, which presents a space conundrum given the planes’ size. Currently, there are 10-15 787s awaiting inspections to ensure the planes are built to specification. The company added that step several years ago after employees raised concerns about potential production issues.
“This creates constraints,” one industry expert said. “There is a cost and an operational penalty. It’s something you really want to avoid as much as possible.” Today, more than half of the parked planes are single-aisle 737 MAX’s still awaiting delivery, some of which are now several years old.
The company says it hasn’t become so tight on space that it has to stop or slow production—what is referred to in the aerospace industry as being “jiglocked.” Supplier shortages, lingering from the supply-chain crisis born amid the pandemic, have saddled the company with planes short of parts. Shipments of the 787 model have slowed as Boeing grapples with a shortage of cabin seating. Seat suppliers industrywide haven’t been able to keep up with demand for cabin premium offerings, amid material shortages and certification delays.
Classroom discussion questions:
- What are the main OM issues facing Boeing today?
- Boeing has faced quality issues with its fuselages. What has it recently done to solve this problem?