Boeing has suspended deliveries of some 737 MAX aircraft as Spirit AeroSystems grapples with new supplier quality issues that can be traced back to 2019, the American aircraft maker said on Thursday.
The issue is likely to affect a “significant” number of undelivered 737 Max aircraft in production and storage and could reduce 737 Max deliveries in the near term, the company said.
Following the announcement, shares of Boeing (NYSE:BA) fell 5.19% in Thursday’s after-hours trading, while Spirit (NYSE:SPR) plunged 11.52%.
Affecting parts of the 737 MAX family including the Max 7, Max 8 and Max 8200 aircraft and the P-8 Poseidon maritime surveillance aircraft based on the 737 NG, this issue is not a flight safety issue and aircraft currently in service are It can continue operating, Boeing said.
The Federal Aviation Administration (FAA) has “validated” Boeing’s assessment that there are no immediate safety concerns “based on facts and data presented by Boeing,” and said it will evaluate all affected aircraft prior to delivery.
The problem is that the two fittings connecting the aft fuselage and vertical tail wing made by Spirit were not properly attached to the fuselage structure before sending them to Boeing. Certain versions of the aircraft, such as the Max 9, used fittings from other vendors and installed correctly.
Boeing was officially notified of the issue by Spirit on Wednesday, but the issue dates back to 2019 and the company is still determining how many aircraft may be affected, Boeing said.
Boeing declined to comment on whether the issue should pull back plans to increase 737 production this year as it races to deliver at least 400 Maxes in 2023. After announcing delivery of 111 Maxes in the first quarter, the company aims to increase its monthly Max production rate from 31 to 38 by June.
“We have notified the FAA of this issue and are working to conduct an inspection and replace non-conforming fittings if necessary,” Boeing said. “We regret the impact this issue will have on affected customers and are contacting you regarding delivery schedules.”
United Airlines said after discussions with Boeing late Thursday that “at this time, we do not expect a significant impact to our capacity plans for this summer or the rest of the year.”
Spirit said it was working to inspect and repair the affected fuselage. Officials said the FAA is likely to issue airworthiness guidelines mandating an inspection and repair regime.
The FAA has been scrutinizing Boeing aircraft since two fatal plane crashes in 2018 and 2019. The FAA continues to inspect each 737 MAX and 787 aircraft before an airworthiness certificate is issued and approved for delivery. Normally, the FAA delegates airplane ticketing authority to manufacturers.