The production challenges faced by Boeing Company BA are reportedly expected to be resolved, with the certification of its 737 MAX 10 aircraft anticipated.
The head of its prominent customer, Avalon, has expressed confidence that the impact of the U.S. regulators’ decision to halt a planned production increase will be minimal in the current year, Reuters reported.
In the medium term, increased regulatory scrutiny is likely to result in delays, and Avolon CEO Andy Cronin mentioned in an interview with Reuters that it might extend until the close of the decade for the aviation industry to recover from the production shortfall observed since the onset of the COVID-19 pandemic.
Also Read: Ireland-Based Lessor Avolon’s Sky-High Move: Places 140 Aircraft Order With Airbus And Boeing
Recently, the Federal Aviation Administration (FAA) took a step to halt the scheduled production boosts for the 737 MAX after an incident involving an Alaska Air Group, Inc. ALK Boeing jet, where a panel malfunctioned.
This development has sparked apprehensions among airlines and suppliers globally, the report read.
Avolon, a significant Boeing customer and the third-largest aircraft lessor globally, with orders for over 100 MAX aircraft, expressed confidence in the safety of the plane.
Also See: Alaska Air Warns Boeing Fleet Grounding Incident To Hit 2024 Earnings By $150M
However, the company acknowledged that the heightened regulatory scrutiny on production is expected to lead to delays in the manufacturing process, Reuters added.
Nevertheless, he emphasized that Boeing possesses the necessary technical expertise and production knowledge to overcome the challenges.
He expressed confidence, stating, “This will come together and will get resolved.”
Price Action: BA shares are trading higher by 0.65% at $203.20 premarket on the last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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