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Boeing back in 'dynamic' production mode, engine supplier Safran says

Safran, the chief of an engine manufacturer and a key Boeing supplier, said that after years of uncertainty about setbacks with its 737 MAX jet passenger plane, U.S. aircraft maker Boeing has returned to a "dynamic" production profiling.

Safran CEO Olivier Andries said at a meeting that the production of the benchmark narrow body jet is almost 38 per month. This is the limit imposed by U.S. authorities after a door plug blew out on an Alaska Airlines plane last year.

Doug Ackerman, Vice President of Boeing Commercial Airplanes Quality, told reporters Tuesday that the planemaker anticipates stabilizing 737 MAX production to 38 aircraft per month in the next few months.

Safran and GE Aerospace jointly produce the most popular jet engines in the world through CFM International, a joint venture. CFM's LEAP engine powers all Boeing 737 MAX, and it competes with Pratt & Whitney to win airline contracts for the Airbus A320neo.

Safran's optimistic tone about Boeing's progress in restoring jet production contrasts sharply with the more cautious view of one of the largest leasing companies earlier on Thursday.

Peter Barrett, CEO of SMBC Aviation Capital, said that Boeing and Airbus made progress but still have "a long way to go" in order to achieve a predictable, stable production cycle.

Andries, Safran's Andries, told Safran shareholders that the demand for aftermarket jet engine services had increased in part because of delays in new aircraft production caused by problems in supply chains in aerospace.

Airbus said CFM was one of two suppliers that slowed down its production increases in the first half, while CFM said it was confident about accelerating during the second quarter. Airbus and Boeing LEAP engines are of different sizes, with different parts.

Andries stated that Safran is receiving encouraging results from CFM’s wind tunnel and other tests for the successor engine to LEAP called RISE. This engine will reduce fuel consumption by 20% and emission by 20%. (Reporting and editing by David Goodman, Elaine Hardcastle and Florence Loeve)

(source: Reuters)