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Boeing to reduce 787 production after identifying new jet issue

Updated: 2021-07-14 06:21
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In this file photo a grounded United Boeing 787 Dreamliner is seen on the tarmac at Los Angeles International Airport January 17, 2012. [Photo/Agencies]

NEW YORK - Boeing is cutting production on the 787 Dreamliner after identifying a new problem with the plane, the company announced Tuesday in the latest in a series of setbacks as the aviation giant struggles to fully recover from a lengthy slump.

Boeing said that while inspecting the 787 jets, it "identified additional rework that will be required."

The Federal Aviation Administration (FAA) described the problem as a "manufacturing quality issue near the nose on certain 787 Dreamliners," an agency spokeswoman said.

"Although the issue poses no immediate threat to flight safety, Boeing has committed to fix these airplanes before resuming deliveries," the FAA said, adding that the company also will analyze whether 787s already in service should be modified.

The latest problem increases the headwinds facing Boeing even as the travel industry begins to rebound from the deep downturn caused by Covid-19 and commercial airlines announce significant new plane orders.

The company's shares tumbled on the announcement, falling 4.2 percent to $228.20 at the close of Tuesday's trading, making it the biggest loser in the Dow.

The manufacturer is "reprioritizing production resources for a few weeks" and will reduce 787 production on a "temporary" basis below the current rate of five a month, which is just over a third of the pre-pandemic level of 14 per-month.

Boeing expects to deliver fewer than half of the 100 aircraft now in its inventory, while it previously expected "the majority" to be delivered this year.

AFP

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