Boeing finds more misdrilled holes on 737 in latest setback

FILE – A Boeing 737 Max jet prepares to land at Boeing Field following a test flight in Seattle, Sept. 30, 2020. Boeing says its supplier has discovered another problem with fuselages of its 737 jets that might delay deliveries of about 50 aircraft. Both Boeing and Spirit AeroSystems are facing intense scrutiny over the quality of their work after an Alaska Airlines 737 Max 9 was forced to make an emergency landing, Jan. 5, 2024, when a panel called a door plug blew out of the side of the plane shortly after its takeoff from Portland, Ore. (AP Photo/Elaine Thompson, File)

By Bloomberg | wordpress@medianewsgroup.com

PUBLISHED: February 5, 2024 at 11:51 a.m. | UPDATED: February 5, 2024 at 11:54 a.m.

By Angus Whitley and Julie Johnsson | Bloomberg

Boeing Co. found more mistakes with holes drilled in the fuselage of its 737 Max jet, a setback that could further slow deliveries on a critical program already restricted by regulators over quality lapses.

The latest manufacturing slip originated with a supplier and will require rework on about 50 undelivered 737 jets to repair the faulty rivet holes, Boeing commercial chief Stan Deal said in a note to staff. While he didn’t identify the contractor, a spokesman for fuselage supplier Spirit AeroSystems Holdings Inc. said it’s aware of the issue and will conduct repairs.

Also see: Boeing cargo plane returns to Miami after takeoff. FAA report indicates ‘softball size hole’ above engine

The extra time required for inspections and repair work could delay near-term plane deliveries, Deal said in his memo, which was seen by Bloomberg News.

“This is the only course of action given our commitment to deliver perfect airplanes every time,” Deal said in his note.

Also see: Boeing steps up quality inspections on 737 Max after blowout

The defect follows a string of manufacturing lapses at Boeing, including a near-catastrophic panel blowout on an Alaska Airlines 737 Max last month. The Federal Aviation Administration has stepped up scrutiny of Boeing’s manufacturing and supplier systems and has capped 737 production until quality improves.

Boeing shares fell 1.6% in premarket US trading on Monday. They had declined 20% this year through Friday, the worst performance on the Dow Jones Industrial Average. Wichita, Kansas-based Spirit Aero, also slid 1.6%. The shares had fallen 12% since the start of 2024.

Also see: Alaska Air passengers sue Boeing over Max 9 door blowout

The problem disclosed Sunday is the latest in a series of glitches originating with Boeing’s former aerostructures unit. A drilling fault on an aft pressure bulkhead supplied by Spirit Aero slowed deliveries of the 737 Max last year, the planemaker’s most important generator of cash flow. A separate issue with tail-fin fittings affected output earlier in 2023.

In the latest instance, Deal said a worker at a Boeing supplier flagged that two holes in the plane’s fuselage may not exactly meet specifications. The problem “is not an immediate flight safety issue and all 737s can continue operating safely,” he said.

Also see: Boeing’s mid-flight blowout is latest in series of quality lapses on 737 Max plane

Still, he said many employees have expressed frustration at how unfinished work, either by suppliers or within Boeing’s factories, can ripple through aircraft production lines. To address this, Boeing has recently told a major supplier to hold shipments until all work has been properly completed, he said.

“While this delay in shipment will affect our production schedule, it will improve overall quality and stability,” Deal said.