FX.co ★ Boeing runs into production woes due to Russian sanctions

Boeing is navigating through turbulent times. According to the Wall Street Journal, the American corporation has encountered significant challenges in rolling out new aircraft, mainly due to anti-Russian sanctions complicating its operations on a global scale.

The troubles have primarily affected RTX, a company that produces thermal regulation equipment for Boeing’s 787 Dreamliner. Following the onset of the Russia-Ukraine conflict, RTX shut down operations in Russia, which caused supply shortages. Initially, shipments aligned with demand, but the company's capacities proved insufficient after production expanded.

According to Boeing CEO Dave Calhoun, the production of heat exchangers has been relocated, but the new supplier cannot meet the company's growing demand. A shortage of cabin seating for the Boeing 787 model is another problem faced by the jet maker, the blame for which goes to the restrictions imposed on Russia.

Earlier, the aircraft manufacturer warned investors that Dreamliner production would decline in mid-2024 but return to previous levels by year-end. Notably, Boeing's aircraft production rate is currently at five per month.