Despite Strike's End, Return To Previous Production Levels Is Slow

Industry analyst Cai von Rumohr of Cowen & Co. expressed a bit of surprise Friday at the low number of Boeing planes delivered in November despite the return of striking workers to assembly lines.

"Even with the Thanksgiving holiday, Boeing had over two and a half weeks to start recovery from the strike with lots of planes near completion going into the work stoppage," Rumohr said. His firm expected 15 to 20 deliveries instead of the four logged for November, the Associated Press said.

After Boeing Machinists went on strike September 6, production ground to a near halt, costing the company an estimated $100 million a day. Boeing managed only 12 deliveries in September and just five deliveries in October, compared with 36 planes delivered in July and August.

On November 1, the International Association of Machinists and Aerospace Workers announced that its members voted to ratify a new 4-year contract with Boeing by 74 percent... bringing an end a 57-day walkout that idled the planemaker's facilities in Washington, Oregon, Kansas, and California.

Boeing has experienced other problems forcing production delays, including the installation of defective fasteners used in its 737s, 747s, 767s and 777s to secure bundled wires and other components to the inside of fuselages. The fasteners lacked a corrosion-inhibiting cadmium coating necessitating their replacement.

FMI: www.boeing.com, www.iamaw.org