Boeing 737 MAX Deliveries May Be Delayed Due To Newly Discovered Quality Defects: Report

In a fresh setback for Boeing Co (NYSE:BA), the company has reportedly discovered new quality defects in its 737 MAX airplanes. This could potentially lead to delays in the delivery of the aircraft.

What Happened: Boeing announced on Sunday that it had identified two mis-drilled holes on the fuselages of around 50 undelivered 737 MAX planes, Reuters reported. The defects were discovered by Boeing’s supplier, Spirit AeroSystems (NYSE:SPR), which could potentially delay near-term deliveries.

The safety of the planes has not been compromised, according to Boeing. The company has planned to address the issue by conducting additional work on the affected aircraft. The Federal Aviation Administration (FAA) has not yet commented on the situation.

Boeing’s CEO of Commercial Airplanes, Stan Deal, stated that the company aims to dedicate several “factory days” at its Renton 737 plant to rectify the mis-drilled holes.

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This is the latest in a series of efforts by Boeing to enhance its operations following the door plug blowout incident on a 737 MAX 9 aircraft operated by Alaska Airlines (NYSE:ALK) on Jan. 5. Investigators are expected to issue an interim report on the incident this week.

Why It Matters: The recent quality defect discovery adds to Boeing’s ongoing challenges. The company’s 737 MAX planes have been under intense scrutiny following a series of safety incidents.

In late January, a cabin mishap on a 737 MAX 9 jet led to a new safety crisis for Boeing, prompting the global aviation finance community to convene in Dublin to discuss the implications of the incident on the industry.

Following the incident, the FAA ordered a production freeze on 737 MAX aircraft, posing potential challenges for the certification process of the MAX 7 and MAX 10 models.

Amid mounting safety concerns, Boeing withdrew a safety exemption request for its 737 MAX 7 and 10 planes, further complicating the certification timeline for these aircraft.

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