Boeing‘s principal supplier, Spirit AeroSystems, has told REUTERS news agency that it is curbing overtime and recruitment efforts in response to a decrease in output of 737 MAX jets. The production of Boeing’s MAX aircraft has significantly declined in recent weeks, attributed to heightened factory inspections by U.S. regulators and a slowdown in assembly line operations near Seattle to address pending tasks. March witnessed a 50% drop in Boeing’s deliveries compared to the previous year, stemming from a multifaceted crisis catalysed by the mid-air panel incident involving an Alaska Airlines flight on January 5.
This downturn in production has begun to affect Spirit AeroSystems, the struggling aerospace supplier that Boeing spun off in 2005 and which produces approximately 70% of the 737 aircraft. Discussions are underway for Boeing to potentially acquire the company. Spirit holds a contractual agreement with Boeing for the 737 MAX programme, allowing the U.S. aircraft manufacturer to adjust the procurement volume as necessary, as outlined in a filing.
According to spokesperson Joe Buccino, Spirit AeroSystems is “aligning our production to support our customer’s rate profile.” This strategy involves short-term measures such as limiting overtime and selective hiring, including contractors.
While the reduction in Boeing’s 737 MAX production has instigated apprehension and uncertainty among suppliers, the broader impact on the aerospace giant’s supply chain remains to be fully discerned.