Guy Norris/LOSANGELES
PRESSURE IS MOUNTING on Boeing to settle with striking workers, as the production backlog begins to build up and deliveries slow to a trickle.
Boeing managed to deliver 11 aircraft in November and 14 in October despite the strike by 32,000 machinists and aerospace workers over job security, wages and health cover. The action, however, has already delayed delivery of around 15 airliners and held up production of another 40.
Boeing declines to comment on the situation, except to say that "...any time you have 32,000 people on strike, it's going to have an impact". It adds: "Since the last offer was turned down, no talks have been scheduled."
The company has been able to maintain some momentum in its delivery schedule by using management staff to complete aircraft which were virtually at the end of the production lines when the strike began. These aircraft, and the aircraft which had been in their acceptance phase, have now been sucked out of the system, leaving Boeing with a gap of probably 30-60 days before it can resume reasonable deliveries once the strike ends.
While the current delivery delays are of serious concern, the company is thought to be even more worried about the long-term production implications, particularly for the 737 and 777 lines. As the strike drags into its third month, Boeing faces the possibility of losing production of around 20 737s and ten 777s by the end of the year.
The impact on the fledgling 777 programme, of which only nine have been delivered, is most severe, as production was reaching an initial rate of three a month when the strike began. The interruption comes in the middle of a sales surge for the 777 and continuing marketing efforts could be hampered by concerns over Boeing's ability to deliver on time in the mid-term.
The 777 monthly production rate was expected to rise to four late in 1996, with an eventual ramp-up to seven a month in future years. The combined results of the strike and delays to the certification of the General Electric GE90-powered versions may force Boeing to accelerate the rate of production as soon as it can to compensate.
Boeing originally planned to deliver 19 by the end of 1995, but will manage ten at most, if the first aircraft for China Southern Airlines is handed over by late December.
If the strike lasts through to the year-end holiday, when Boeing traditionally closes down for around a week, the production of up to 12 757s, six 747-400s and more than ten 767s is also likely to be severely delayed.
Continental, Southwest, Singapore (SIA) and United Airlines are among the operators most immediately affected by the strike. Continental says that the strike has "...pushed us back five aircraft this year", but it is adjusting aircraft within the fleet to compensate. SIA says that three 747-400s due to arrive by the end of 1995 will not be delivered, and that acceptance of a further six 747s on order could be disrupted in 1996. The airline says that no "immediate" problems have been caused because it has sufficient capacity for the moment.
Southwest says: "We had two 737s due for delivery in November which did not come. We're studying all types of alternatives to compensate, ranging from cutting frequency to diverting aircraft from some routes." The carrier has outstanding firm orders for 18 current-generation 737s, all of which are due for delivery in 1996. It also holds firm orders on 63 737-700s.
United says that it is cancelling international routes from Washington to Madrid and Los Angeles to Paris and dropping plans for a new service between Miami and Sao Paulo in Brazil because of delays in Boeing deliveries.
UPS Airlines has received four of the five 767-300Fs due by the end of the year and, in spite of the strike, is confident of getting its fifth in time for the pre-Christmas rush. The last aircraft will be handed over unpainted.
Major subcontractors are also drawing up contingency plans to slow down production, if needed. Northrop Grumman's commercial-aircraft division, the largest US structural subcontractor to Boeing says: "Right now we're not directly impacted, but, obviously, the longer the strike goes, on some sort of changes will be looked at." The company supplies two 747 fuselages a month, four 757 and three-and-a-half 767 wing boxes and tail sections a month and three 777 control-surface shipsets.
Pratt & Whitney still plans to continue shipping an average of 22 engines a month to Boeing, but could soon face troubles of its own. The company is renegotiating its contract with the same union involved in the Boeing strike. The present contract runs out on 3 December, and its high delivery schedule could be intended to keep stocks up at Boeing in case it also falls victim to strike action. GE declines to comment on engine delivery schedules.
Source: Flight International
