A look inside Boeing's 737 MAX factory
In early 2020, before COVID-19 ravaged the world and shuttered the airline industry, Boeing's factory in Renton, Washington, ground to a halt.
The latest version of the planemaker's best-selling commercial aircraft, the 737 MAX, had been grounded for nine months following two fatal crashes, and undeliverable finished aircraft were piling up around the factory, with even employee parking lots at Boeing's Seattle-area facilities serving as storage space for the planes. The factory would need to take a breather until more space could be freed up.
After arguably the most intense scrutiny an aircraft type has ever undergone by regulators, the 737 MAX was recertified by the FAA in December 2020. Since then, even with the ongoing pandemic, things have been quite different in Renton.
The MAX has become a workhorse aircraft in commercial fleets around the world. Since recertification, more than 630 MAX aircraft in service with about 45 airlines have flown more than 1.5 million combined hours, according to Boeing senior vice president Mike Flemming, with over 600,000 total flights operated.
Those numbers are likely to increase exponentially as Boeing makes an effort to scale up production of the aircraft to meet surging demand from airline and aircraft leasing customers.
Boeing is attempting to get production to a consistent rate of 31 new aircraft a month — down from a peak of 52 in April, 2020, but a notable increase from depressed pandemic-era rates, and a challenge given the labor shortages and supply chain disruption throughout the global economy.
TPG recently had a chance to tour the factory and see the production at work.
The Renton factory is where Boeing produces all of its narrow-body models, including military derivatives such as the P-8 Poseidon, a modified 737-800 that functions as a reconnaissance plane. In the past, Boeing's also built the 707, 727 and 757 in Renton.
More than 14,500 commercial airplanes have been built in Renton.
We toured a few of the production lines, not the entire factory, and saw a few 737 MAX aircraft in different stages of completion.
The Renton factory is where the planes are assembled, but the different components are built around the world. The fuselage, for instance, is built by Spirit Aerosystems in Witchita, Kansas, and shipped to Renton by train. Then, Boeing workers join the wings, tail, engines, and other parts of the plane, before installing everything else, like the control systems and wiring.
Production at Renton includes all models of the 737 MAX — the -8, the denser high-capacity -8-200 ordered by European low-cost carrier Ryanair, the -9, and the two newer variants still undergoing FAA certification, the smaller but higher-range -7 and the larger -10.
Notably, we also saw a few planes destined for U.S. airlines. American, United, Southwest and Alaska all operate the MAX within the U.S., and during the tour we saw planes for all of them except American.
The day after the tour, I flew to Phoenix for a one-on-one interview with Bob Jordan, Southwest's CEO. Having seen several of his airline's planes being built the day before, and knowing that Southwest is eagerly awaiting the 737 MAX 7 to be cleared by the FAA, I asked Jordan about the planes.
He told me that as keen as the airline is on the smallest MAX jet, the airline is working with Boeing to keep things flowing in the meantime. Among other things, that's meant taking delivery of ordered 737 MAX 8 aircraft during delivery slots that had originally been intended for MAX 7 (Southwest will accept those MAX 7 jets once the plane is cleared during delivery slots originally scheduled for MAX 8 units).
"We stay really close to Boeing because the MAX is a great aircraft, period, 7 or 8," Jordan said. "Boeing is being a great partner."
"We already have agreements into 2023 to [swap -7 and -8 deliveries]", he added. "Ultimately, we'll get the -7, it's a great aircraft."
It's not immediately clear when Boeing will reach its 31-per-month output, nor when it will be able to scale up beyond that.
Regardless, airlines continue to order the planes and await their new fleets. For now, though, Boeing's Renton facility is churning back to life.
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
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- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
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- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
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You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
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Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.