Eric M. Johnson, Tim Hepher

SEATTLE/PARIS – Boeing (NYSE 🙂 Co advised key airlines, parts suppliers, and other companies that 787 Dreamliner deliveries could resume in the second quarter of 2022. It is a landmark decision for an industry looking for a post COVID recovery. Three people who are familiar with this matter stated.

Boeing’s 787 inventory has risen significantly since the company stopped deliveries almost a year ago due to structural problems. This has resulted in a shortage of cash, and a reduction in airline capacity.

Boeing is moving to increase production step by step in the future. It’s crucial to sustaining an existing supply chain, which has been through many crises.

The original April delivery date has been delayed to May, with further delays expected, according to people. This is because Boeing conducts meticulous inspections and repairs of structural defects in around 100 advanced composite jets. These are being scrutinized by more aggressive U.S. aviation safety regulators.

Boeing is now not making any public projections about when it will receive approval for resume delivery. Boeing estimated that the total cost of this industrial snarl would be $5.5 billion.

According to two people who are familiar with this matter, Boeing told airlines that they would resume deliveries in the second half year. A third-quarter restart in 2022 is possible, according to one of those people. Industry sources and people also warned that the targets had been repeatedly set back.

Boeing declined to comment and said that the FAA would decide when deliveries will resume.

The spokesperson stated that “As you’ve already said, we take the time necessary to ensure compliance with our exacting specifications.”

An FAA spokesperson stated, “Safety determines the timeline.”

Boeing was unable to self-certify its 787 planes in February by the agency.

The FAA spokesperson added that it would retain that authority until the agency is confident that Boeing is building planes that meet its design standards, deliveries are stable and that Boeing “has a robust plan for the re-work that it must perform on a large volume of new 787s in storage.”

When Boeing announces earnings, April 27, details about the 787 program will interest investors.

Airlines have been unable to increase their capacity due to the 787 issues, which has impacted production rates. The supply chain has been affected by the 787 problems and the almost two-year ban on safety of the 737 MAX due to fatal crashes.

American Airlines (NASDAQ – Group Inc) announced that 787 delayed flights caused it to suspend routes between Seattle and London and Los Angeles and Sydney. It also suspended services between Dallas and Santiago.

American will report quarterly results Thursday.

United Airlines spokeswoman referred to January’s remarks. United Airlines stated to analysts that it initially expected to receive eight 787-Jets by the second half of 2021. However, the target was moved to the following summer 2022, which forced it to reduce its capacity.