Boeing will take months to increase jet production to the rates targeted before the union workers' strike that ended on November 5, leaving frustrated Gulf airlines awaiting deliveries of their delayed aircraft, analysts said.
The US plane-maker will build up its production rate slowly and gradually as workers return to their duties starting from November 6, with the 737 Max production output expected to reach the “the mid-teens” in the first quarter of next year, John Grant, senior analyst at travel data firm OAG, told The National.
This falls short of the goal of 38 planes a month before the strike, which had halted work on the 737 model. The US Federal Aviation Authority (FAA) had earlier frozen the monthly production rate of the 737 Max as Boeing works on a plan to improve its quality control and safety processes.
“They cannot get back to those numbers without full clearance from the FAA and that is going to take months, I anticipate they will get to the mid-teens by the end of the first quarter 2025 at best,” Mr Grant said.
US investment bank Jefferies expects that production could restart in the “upper teens” after the end of the strikes, compared to about 25 a month pre-strike rate, it said in a note on November 5.
Analysts expect Boeing to exceed its pre-strike production level on its best-selling 737 narrow-body model by 2027.
“Boeing can probably get back to its pre-strike production rates within a few months. This is because those pre-strike production rates were terrible. Getting to where they want to be, which is well over twice those pre-strike rates, will take longer than it would have before the strike,” Richard Aboulafia, managing director of US-based aerospace consultancy AeroDynamic Advisory, told The National.
“Maybe in late 2026 or 2027, they’ll get to [production] rate 40 on the 737.”
Boeing's US West Coast factory workers accepted a new contract offer on Tuesday, ending a seven-week strike that had halted production of its best-selling 737 Max jet, as well as the 767 and 777 wide-bodies. The strike that started September 13 hammered Boeing's finances and added to the US plane maker's mounting woes.
Gulf airlines have expressed frustration with Boeing's continuing aircraft delivery delays, which were worsened by the strikes, as the lack of new planes hampered their growth plans amid strong air travel demand.
Emirates in October said plans to hold a “serious conversation” with Boeing in the next two months after the troubled US plane maker again pushed back the delivery date for its 777X, delaying its largest wide-body aircraft by about six years. In a terse statement, Emirates president Sir Tim Clark said “I fail to see how Boeing can make any meaningful forecasts of delivery dates”, given certification issues on the 777X and the strikes that were still under way at the time.
Last month, flydubai chief executive Ghaith Al Ghaith said the industry needs more aircraft manufacturers to enter the market to stimulate competition and shake up the dominance of Boeing and Airbus. Delays in Boeing aircraft deliveries are affecting Flydubai's capacity to grow, forcing the airline to cancel the launch of routes planned for the second half of this year and to reduce flight frequency. The all-Boeing fleet operator said in July that it was informed by Boeing that it would not receive any more planes this year.
“Airlines have already been wrestling with the uncertainty caused by delivery delays and the inability to plan future schedule seasons with confidence,” London-based independent aviation consultant John Strickland told The National.
While it is a relief for Boeing to end the workers' dispute, increasing its jet production rates will require prioritising the quality of its and its relationships with employees and suppliers.
“Given the complexity of production processes and the complex web of sub-suppliers who have borne their own impact from the strike, this will not be an easy task,” Mr Strickland said.
“It will take months rather than days or weeks to ramp up production and even then there are still the regulator imposed limits on output as the company seeks to restore necessary quality and safety processes.”
While ending the strike is a positive step, Boeing still has a lot of work to do in the months and years ahead as chief executive Kelly Ortberg executes a wider plan to turn around the aerospace company.
The next step is to finish the acquisition of Spirit AeroSystems, the Wichita, Kansas-based supplier that produces the fuselage for its 737 Max jet and negotiate a contract with the 3,000-strong St Louis machinists, largely for defence production, George Ferguson, senior aerospace analyst at Bloomberg Intelligence, told The National.
“After this, it's all about improving quality and production throughput, reducing inventory and generating cash. Everything is largely in place, now its time to execute,” Mr Ferguson said.
Restarting and increasing production is necessary for the company to start generating cash and repaying debt, Ben Tsocanos, aerospace director at S&P Global Ratings, said in a report on November 5.
“We're watching to see how quickly aircraft production can recover and ramp up,” he said.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Other acts on the Jazz Garden bill
Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Kat Wightman's tips on how to create zones in large spaces
- Area carpets or rugs are the easiest way to segregate spaces while also unifying them.
- Lighting can help define areas. Try pendant lighting over dining tables, and side and floor lamps in living areas.
- Keep the colour palette the same in a room, but combine different tones and textures in different zone. A common accent colour dotted throughout the space brings it together.
- Don’t be afraid to use furniture to break up the space. For example, if you have a sofa placed in the middle of the room, a console unit behind it will give good punctuation.
- Use a considered collection of prints and artworks that work together to form a cohesive journey.
Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
Available: Now
