It's a long way to go! Boeing's factory restart after the strike will take weeks, and aircraft deliveries hit a four-year low.

Market IntelWednesday, Nov 13, 2024 1:40 am ET
1min read

Boeing (BA.US) said more than 32,000 machinists on strike were asked to return to work by Tuesday, but it will take weeks to get the factories running again. The company said on Tuesday it delivered 14 jets in October, the fewest since the pandemic's peak in 2020 and the final phase of the grounding of the Boeing 737 Max after two deadly crashes. Nine of the jets delivered last month were 737 Max. A spokesman said workers not on strike carried out the delivery procedures. The strike, which lasted more than seven weeks, ended last week after machinists approved a new contract that includes a 38% pay raise over four years and other improvements. The first strike activity was on Sept. 13, when workers rejected a 25% pay raise offer. This year, Boeing's woes have put it further behind Airbus. The American manufacturer has delivered 305 planes so far this year, while its European rival has delivered 559. As workers return, Boeing must assess potential hazards, reiterate machinists' duties and safety requirements, and ensure all training qualifications are up to date, a spokesman said. "We've got to get this right," Chief Executive Kelly Ortberg said on a quarterly conference call last month. "Opening it up is much harder than closing it down." Boeing is restarting production of the 737 Max, 767 and 777 and military models in Washington state and Oregon. Production of the 787 Dreamliner continues during the strike because those planes are built in a non-union factory in South Carolina. Boeing still sold dozens of planes in October despite the strike, with 63 total orders, two fewer than in September. Forty were 737 Max 8s for Avia Solutions Group. It also delivered 10 787 Dreamliners to Latin American airlines.

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