Safran sees Boeing regaining momentum on 737 Max production

Boeing (NYSE:BA) is showing signs of renewed production momentum on its 737 Max program following years of turbulence, Olivier Andries, chief executive of French aerospace group Safran (OTCPK:SAFRY) (OTCPK:SAFRF), a major supplier to the U.S. planemaker, said Thursday, according to a report by Reuters.

Speaking at Safran’s annual shareholder meeting, Andries said Boeing’s (NYSE:BA) production pace on the single-aisle 737 Max has reached nearly 38 jets a month, the current maximum allowed by U.S. aviation regulators following a mid-air panel failure on an Alaska Airlines flight last year.

Boeing Commercial Airplanes’ vice president of quality, Doug Ackerman, also said earlier this week that the company aims to stabilize monthly output at 38 aircraft over the coming months.

Safran (OTCPK:SAFRY) (OTCPK:SAFRF), which jointly builds the CFM International LEAP engine with GE Aerospace (NYSE:GE), supplies powerplants for all Boeing (BA) 737 Max aircraft. The LEAP also competes with Pratt & Whitney on the Airbus (OTCPK:EADSF) (OTCPK:EADSY) A320neo platform.

The Safran chief also noted that the company is benefiting from increased demand for aftermarket engine services, a trend he attributed partly to ongoing delays in new aircraft deliveries amid ongoing supply chain challenges across the aerospace industry.