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Boeing struggles with 787 production bottlenecks

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SEATTLE/NORTH CHARLESTON – A 787 that rolled out of Boeing’s factory in Everett, Washington, in January was hailed as an important milestone: the first Dreamliner built at a rate of 10 a month, the fastest for a twin-aisle jet.

But some employees who work on the aircraft are calling into question Boeing Co’s (BA.N) ability to sustain that pace. They say the two factories that assemble the 787 are struggling to cope with a ramp-up in production that started late last year, and a huge backlog of unfinished work threatens to slow output.

Boeing’s plant in North Charleston, South Carolina, cannot finish thousands of work orders and is sending pieces to the larger plant in Everett to be completed so that the company can maintain its 10-a-month rate, according to four employees who spoke on condition of anonymity. A work order can be as simple as attaching a part or as complex as installing a duct system.

A senior employee in Everett said the problem is particularly acute with the jet’s complex wiring: fuselage sections were arriving from North Charleston with large bundles of wires that were not connected properly.

The South Carolina workers have the skills to produce the plane correctly “but there are not enough of them to match the rate increase,” the senior employee said. “They can’t keep up.”

Boeing said it is aware of the bottlenecks and is working to fix the problems. The company has hired hundreds of contract workers in South Carolina, and created special teams in Everett to inspect the planes and tackle the extra tasks, known as “traveled work” because it was moved from South Carolina to Everett.

“While we try to minimize it, traveled work is something we deal with in all production programs,” said Boeing spokesman Marc Birtel. “The 787 program remains on track to meet its delivery commitments in 2014 and we are producing 787s at a rate of 10 per month as planned.”

The backlog, first reported in the Seattle Times, comes as the U.S. Federal Aviation Administration has launched an audit of Boeing’s factories this month. The FAA said the audit was regularly scheduled and declined to comment further.

Boeing said the audit was routine, performed about every two years at multiple facilities, and required for Boeing to maintain its FAA certification to produce all of its airplanes. It was not focused on the South Carolina plant, Boeing said.

MAINTAINING OUTPUT

Boeing’s ability to churn out the Dreamliner is crucial to its financial performance this year as the company is relying on commercial jetliners to offset a weak defense business. While Boeing still loses money on each 787 that it builds, it gets closer to breaking even as production increases.

Cash flow from the 787 is expected to improve next year, provided the factories stay on pace, Boeing said. The cash is needed to fund new plane development, as well as fulfill investors’ desire for share buybacks and dividends.

Boeing’s South Carolina facility makes all aft and midbody fuselage sections for the 787. Most of those sections are shipped to Everett for final assembly of the airplane, with the remainder assembled into finished planes in South Carolina.

Boeing said South Carolina aims to build three finished jets a month by mid-year, with Everett producing seven.

A Boeing employee in South Carolina said factory managers are telling workers to put down their tools and let pieces move along the assembly line even if they are not finished, so that the plant can maintain its output rate.

Boeing’s spokesman confirmed it is sometimes more efficient if unfinished work is moved elsewhere so the line can keep operating at the planned pace.

The production problems with the wiring bundles have caught the attention of the FAA, whose inspectors issued Boeing at least one “letter of investigation” on the matter months ago, according to the senior Everett employee.

The letter was part of ongoing FAA oversight and has not been linked to the current audit or to any issues on the delivered planes, including the 787 battery fires that grounded the entire fleet for more than three months last year.

According to Boeing, it has addressed the wiring issues raised by the letters. The company has teams to inspect all wiring, both from suppliers and its own facilities, as is standard practice.

The Everett worker said wiring is now no longer being fully installed in South Carolina. Instead, wiring bundles are being “pre-routed,” or put in loosely, and the actual connections are done in Everett.

The employees who discussed the 787 problems all asked not to be identified because they were not authorized to speak publicly and feared losing their jobs.

BOEING TAKING ACTION

One contractor recently hired in South Carolina said his job consists of working “shoulder to shoulder” with assembly workers to review engineering plans, inspect components before they are installed, oversee installation and review the final work to make sure it was done properly. Other contractors perform assembly or fabrication work.

He said 9,500 work orders were backlogged late last month. The Boeing staff worker in South Carolina said the backlog has since fallen to about 7,500

Boeing disputed those figures, but declined to give other numbers. It said about 7,000 contract and staff employees currently work at the South Carolina facility.

The contractors are being paid overtime on mandatory work Saturdays, the contract worker said. Sunday work is voluntary but there is pressure to volunteer, the worker said.

Boeing Chief Executive Jim McNerney told an industry conference last week that bottlenecks in the South Carolina factory appeared as Boeing added a stretched version of the 787-8, known as the 787-9, while increasing the production rate.

There was “not any sign that the 787 program is off the rails or we may not be able to hold 10 a month,” McNerney told the conference organized by Cowen & Co.

“This is what happens on all of our programs,” he said. “Sometimes when we break to a rate, it surfaces an issue that needs some extra attention. And that’s really the story here.”

– REUTERS

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Aviation

NCAA Cracks Down On Pilots Working For Multiple Airlines

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The Nigeria Civil Aviation Authority (NCAA) has announced stringent measures against pilots and crew members who work for multiple airlines concurrently, a practice it describes as a serious safety violation.

In a letter dated November 6, 2024, Acting Director-General, Chris Nojomo warned that pilots operating for more than one airline without specific safety protocols pose significant risks to Nigeria’s aviation sector.

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The directive, titled “Prohibition of Ad-Hoc Flight Operators for Multiple Airlines,” noted that NCAA surveillance reports revealed multiple cases of unauthorized cross-airline work by flight crews, which the agency now plans to address.

According to the NCAA, simulator and proficiency checks endorsed on a pilot’s license are valid only for the specific airline and training program under which they were issued.

The letter stated, “With effect from the date of issuance of this directive, all operators and holders of pilot licenses are informed that this action will be treated as a violation of the Nigeria Civil Aviation Regulations.”

The NCAA’s new policy, effective November 11, 2024, warns that violators will face strict enforcement actions. Moving forward, simulator renewals will also be filed directly with individual operators, further tightening the agency’s oversight.

 

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Akwa Ibom Boosts Ibom Air Fleet With Two New Aircraft

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In a bold step to strengthen Akwa Ibom’s position in Nigeria’s aviation industry, Governor Umo Eno announced the addition of two new Bombardier CRJ900 aircraft to the fleet of the state-owned airline, Ibom Air, on Friday.

The two aircraft, registered as 5N-CED and 5N-CEE, mark a milestone in the state’s commitment to strategic investment, with the governor stressing that the acquisitions were fully funded by state resources without loans from financial institutions.

READ ALSO: FCTA Allocates N9.8bn To Upgrade Abuja Airport’s Presidential Wing

At a welcoming ceremony attended by local officials and residents, Governor Eno emphasized his administration’s mission to drive revenue-generating ventures for Akwa Ibom rather than relying on debt.

He called the move a step toward breaking the cycle of government investments that only serve to pay off loans, vowing that the state’s funds would go towards projects that bring returns to the people.

The governor challenged Ibom Air to turn a profit by 2025, stating that the airline’s management should ensure routes in and out of Uyo remain dependable to prioritize the needs of Akwa Ibom travelers.

“As long as I remain governor, we will continue to use state funds for the benefit of all, not for private gain,” he said, noting that his administration aims to ensure that public investments deliver real value to the state.

Governor Eno also provided updates on several ambitious state projects, including an 18-story commercial complex underway in Lagos and an upcoming 4-star hotel in Abuja, both designed to generate revenue for Akwa Ibom.

Plans for an international market in Ikot Ekpene and the phased opening of a new terminal at the Victor Attah International Airport were also announced, with the airport terminal set for partial operation by December and full activation in early 2025.

Speaker of the Akwa Ibom State House of Assembly, Udeme Otong, commended Eno’s financial management, highlighting that the administration has avoided seeking loans over the past 18 months despite launching significant development projects.

Ibom Air’s Chairman, Pastor Imoabasi Jacob, expressed appreciation for the state’s investment in the airline, which has seen its fleet grow to nine aircraft.

Jacob credited the governor’s support with enabling Ibom Air to boost flight capacity, meeting demand on popular routes such as Uyo-Lagos-Abuja.

Captain Mfon Udom, CEO of Ibom Air, stated that the expanded fleet will improve efficiency and allow the airline to scale up its operations in time for the Christmas travel season.

Udom also noted that the airline anticipates the delivery of nine additional Airbus planes, which will further strengthen Ibom Air’s market presence.

Traditional leaders, including HRM Edidem Ita Edet Okokon III of Okobo Local Government Area, lauded the governor’s leadership, pledging continued support from the traditional institutions.

Anie Essienette, Group Manager for Marketing and Communications at Ibom Air, noted that demand for the airline’s services has surged nationwide, with the new CRJ900 aircraft helping meet this increasing need while the airline awaits further fleet expansion.

 

 

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BREAKING: Private Air Strip Owners Pay Handsomely – Keyamo

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Nigeria’s Minister for Aviation and Aerospace Development, Festus Keyamo is of the view that there’s no cause for alarm over the approval of a private airstrip for a religious organisation, which attracted the attention of the House of Representatives.

He took to his verified handle on micro-blogging site, X, on Friday morning to shed light on the subject, and explained that it could be a great source of revenue for Federal Government.

Keyamo asserted that the issue was raised by an honourable member at plenary, out of ignorance, but was “unanimously referred to the Aviation Committee to look into.”

ALSO READ: Why Foreign Airlines Must Patronise Nigerian Caterers – Keyamo

Keyamo expressed confidence that by the time his Ministry  was done enlightening them, “they will be satisfied”.

He added that “the privates air strip owners pay the Federal Government handsomely for these services.”

Keyamo wrote, “I think this is not correct. The House of Reps. as a body did not call on the Minister to revoke the license of any private airstrip.

“I think what happened is that someone moved a motion in that regard and it was unanimously referred to the Aviation Committee to look into it.

“Whilst the intention of the Hon. Member who moved it is very patriotic, it was based on a complete lack of knowledge of the aviation sector.

“By the time we explain to them how private air strips work and the processes they undergo by our agencies before the final approval, they will be satisfied.

“The responsibility of the owners of private air strips is just to build the runway and terminal building. But after they build the control tower in particular, it is completely handed over to the Federal Government through NAMA (Nigerian Airspace Management Agency) which is in complete control of the entire airspace in Nigeria. An MOU is usually signed with NAMA in this regard before the airstrip is approved for operations.

“It is NAMA that provides the Air Traffic Controllers and Engineers in ALL AIRPORTS and AIRSTRIPS IN NIGERIA. And the privates air strip owners pay the Federal Government handsomely for these services.

“No object flies into Nigeria without the prior clearance by NAMA and without filing a clear flight plan, eg, where it is taking off from and where it intends to land.

“And I have recently directed that all aircraft coming into the country MUST first land at our international airports where they would be properly processed and checked before they make their local flights into whatever airport or airstrip they intend to go. So, it is COMPLETELY AND TOTALLY impossible for any private airstrip owner to just jump on an aircraft and fly in and out of the country through that facility. The Federal Government does not permit that. You will not be cleared for take off or landing without prior request and authorisation.

“I thank the Member for his patriotism, but I wish he contacted us first to explain to him before rushing to move such a motion.

“I attach herewith for public consumption the NAMA Act that gives exclusive control of the Nigerian airspace to the Federal Government through NAMA.”

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