Boeing Company (BA.US) sees new progress in recovery: Fourth 737 MAX production line in operation, MAX 7 certification imminent.

American aircraft manufacturer Boeing Company (BA.US) officially opened its fourth 737 Max assembly line near Seattle on Friday to deliver its growing backlog of orders, although initial production on the new line will be relatively low. Jennifer Boland-Masterson, a senior executive at Boeing Company, introduced the assembly line at a media tour, located at the Everett factory complex. The plant mainly produces wide-body aircraft such as the 777, 767, and the soon-to-be-launched 777X, with the new line initially employing around 1,000 employees. Boland-Masterson stated that Boeing Company will initially adopt a slow production mode to identify and resolve various production issues to ensure smooth operation of the assembly line. She did not disclose the specific production expansion schedule for this line, but mentioned that additional workers will be gradually hired as production capacity increases. This new production line is a key element in Boeing Company's efforts to increase production of the 737 MAX series. Previously, the Federal Aviation Administration (FAA) restricted the monthly production capacity of Boeing Company's 737 MAX models to 38 due to quality issues exposed by incidents like cabin door detachments, leading to significant changes in Boeing Company's top management. In May, CEO Kelly Ortberg stated that the aircraft manufacturer had been authorized to increase monthly production to 47 aircraft. Boeing Company's ultimate goal is to raise monthly production of the 737 to 63, which is crucial for debt repayment, improving financial conditions, and challenging Airbus's dominance in the profitable single-aisle aircraft market. However, major aircraft manufacturers face numerous obstacles in expanding production, including shortages of components and labor caused by the pandemic. Boland-Masterson mentioned that as airlines add more lie-flat seats to attract high-end customers on narrow-body aircraft, the new production line has added extra workstations to allow workers to install complex interior features without disrupting other processes. Approximately 50% of the workers come from Boeing Company's core 737 MAX factory in Renton, south of Seattle, with the other half being new employees undergoing training at the main narrow-body aircraft factory. Boeing Company stated that the first aircraft produced on the new line will be the 737 Max 10, a model not yet certified, to be delivered to Canadian airline WestJet. Meanwhile, according to reports from sources, the Federal Aviation Administration (FAA) is expected to approve the certification of the 737 MAX 7 model later this month, another important milestone for Boeing Company after overcoming a series of safety and quality issues. Additionally, the FAA is expected to soon restore Boeing Company's authority to provide final safety signoff for new 737 aircraft production, a privilege that was revoked following the two 737 MAX accidents in 2019. If the MAX 7 is approved, it will benefit one of its largest customers, Southwest Airlines Co. Southwest Airlines Co. has ordered 258 737 MAX 7 aircraft, but due to delays in certification, has had to continue operating a fleet of 737-700s with an average age of around 20 years. On Friday before the U.S. stock market opened, as of writing, Boeing Company's stock price increased by 0.4%.