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A Rough Year at the Plant

1996
Boeing continues to increase production rates, to hit 43 planes per month by 1998.

MAY, 1997
In a letter to the company, FAA inspector Vi Lipski describes Boeing's paperwork as ''out of control.''

JUNE, 1997
Suppliers report that they are unable to keep up with Boeing orders.

AUGUST, 1997
Boeing puts finishing touches on its merger with rival McDonnell Douglas.

OCTOBER, 1997
Production of 747s and 737s is halted to clear manufacturing bottlenecks. Boeing takes a $1.6 billion charge to cover the cost of increasing output and warns of $1 billion more in 1998 write-offs.

NOVEMBER, 1997
Boeing is hit with shareholder suits accusing it of hiding problems during the McDonnell merger.

DECEMBER, 1997
A 10-month-old 737 crashes. Investigators discover that 26 screws are missing from the tail.

JANUARY, 1998
FAA orders inspections of 737s delivered after September, 1995, for possible missing screws. The FAA also initiates inspections of two plants where the 737 is produced.


DATA: COMPANY REPORTS, BUSINESS WEEK


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