Boeing delays plans for record 737 production

BEIJING: Boeing has delayed plans to reach a record production rate of 57 737 jets per month next year, industry sources said, even before the US FAA announced a new delay in the 737 MAX's return to service which raised uncertainty over production plans.

The world's largest planemaker has also delayed plans to step up from the current rate of 42 jets per month to 46 jets this year until March 2020, as the company struggles to win regulatory approvals for its best-selling jet after two deadly crashes.

The US Federal Aviation Administration said on Wednesday that the agency will not approve the grounded commercial jet for flight before year end, and said it was investigating production issues at the Boeing factory in Renton, Washington.

Meanwhile, Qantas Airways said is has chosen Airbus as preferred supplier for jets capable of the world's longest commercial flights from Sydney to London, beating rival Boeing after a hard-fought contest. The choice of up to 12 A350-1000 planes fitted with an extra fuel tank for flights of up to 21 hours cements Airbus as the leader in ultra-long haul flying globally at a time when Boeing is battling with delays on its rival 777X programme and a broader corporate crisis following two deadly 737 MAX crashes.

The Qantas flights would begin in the first half of 2023, but remain subject to reaching a pay deal with pilots, who would need to extend their duty times to around 23 hours to account for potential delays and switch between flying the A350 and the airline's current A330 fleet. A final decision on an order is expected in March, the airline said.

Qantas CEO Alan Joyce said the airline "had a lot of confidence" in the market or non-stop services from Sydney to London and to New York based on two years of flying nonstop from Perth to London, where it has achieved a 30 per cent fare premium over one-stop rivals in premium classes.

"The A350 is a fantastic aircraft and the deal on the table with Airbus gives us the best possible combination of commercial terms, fuel efficiency, operating cost and customer experience," he said. Singapore Airlines operates the world's current longest flight, nearly 19 hours from Singapore to New York, using an ultra-long range version of the smaller A350-900.