Boeing to Halt 737 MAX Production Next Month

Boeing to Halt 737 MAX Production Next Month

Boeing said Monday it would temporarily suspend production of its globally grounded 737 MAX jets next month as safety regulators delay the aircraft’s return to the skies after two crashes.

The decision confirmed investor fears that the company’s recovery from the crisis is dragging on longer and creating more uncertainty for Boeing than executives anticipated.

Boeing’s travails since March have weighed on the US economy, holding down American manufacturing output, trade and sales of durable goods while damaging the company’s performance on Wall Street’s benchmark Dow Jones Industrial Average.

In a statement, the company said it would continue to pay its workers despite the temporary production stoppage, but the decision immediately raised questions for the future of parts suppliers that contribute to the jets’ manufacture.

“We have previously stated that we would continually evaluate our production plans should the MAX grounding continue longer than we expected,” the company said in a statement.

“As a result of this ongoing evaluation, we have decided to prioritize the delivery of stored aircraft and temporarily suspend production on the 737 program beginning next month.”

The company said it would focus on delivering 400 jets it has kept in storage.

ALSO READ---  DSTV, Others Shivers as New TV Brand,TSTV Launches "Pay As You Go" Services.

Though the jets have been grounded worldwide since March following deadly crashes in Indonesia and Ethiopia, which left 346 people dead, Boeing had continued to produce 40 of the planes per month at a Renton, Washington facility.

  • Shares tumble on Wall Street –

Last week, US aviation regulators issued the company an unusually sharp rebuke, accusing it of pursuing an “unrealistic” timeline for the MAX’s return to service and of making public statements intended to put

pressure on federal authorities.

The Federal Aviation Administration said Wednesday it could not approve the jets’ return to service before 2020, even though Boeing had long said it planned to get officials’ green light before the end of this year.

Boeing and the FAA have been under intense scrutiny for their responses to issues with the aircraft, including the flight-handling system involved in both accidents, the Maneuvering Characteristics Augmentation System, or MCAS.

“Boeing seems to have finally come to terms with the new reality that international safety regulators will not be bent to their whim, and the process of returning these planes to service is not as simple as a quick software fix,” Senator Richard Blumenthal said in a statement.

ALSO READ---  Federal Polytechnic Nekede Produces Biomass Machine, Manual Seed Planting Machine

Analysts say Boeing’s prospects will remain clouded until Boeing can get the all-clear for the MAX to fly again.

“As we have throughout the 737 MAX grounding, we will keep our customers, employees and supply chain top of mind as we continue to assess appropriate actions,” the company said, adding that it will disclose financial information tied to the suspension when it releases quarterly results late next month.

Major air carriers that had purchased 737 MAX jets have repeatedly pushed back the dates on which they anticipate a return to service.

Southwest said Thursday it had reached a confidential agreement with Boeing partially compensating the airline for costs related to the grounding of the jets.

Nevertheless, the manufacturer in November unveiled an updated version of the jet, the 737 MAX 10.

Shares in Boeing fall 4.3 percent as investors anticipated Monday’s decision. They were down another 0.4 percent in after-hours trading at 2300 GMT.

AFP

About author

You might also like

Technology

Google Moves To Disrupt Streaming, Studio Video Games

Google set out to disrupt the video game world on Tuesday with a Stadia platform that will let players stream blockbuster titles to any device they wish, as the online

Technology

Samsung Chairman Jailed for Union Sabotage

The chairman of Samsung Electronics, the world’s biggest smartphone and chip maker, has been jailed for sabotaging union activities, prompting a rare apology on Wednesday from the firm. Chairman Lee

News

Harnessing of Mines Sector, Key to Industrial Development — Gov. Ihedioha

Evangeline Opara, Owerri. Imo state Governor, Chief Emeka Ihedioha, says that no country can develop industrially without harnessing her mines and metal sector. Ihedioha stated this at the 2nd Nigeria

Technology

Japan Robot Hotel Sacks Half of its Robots

A Japanese hotel that ran entirely on robots has culled half of its staff. The team at Japan’s Henn-na ‘Strange’ Hotel have decided to lay off half its 243 robots

Technology

US, French Astronauts Make ISS Spacewalk

A French and an American astronaut embarked on a spacewalk Sunday to complete the installation of new solar panels to boost power supplies to the International Space Station (ISS), they

Technology

Breaking: Federal Poly, Nekede Unveils First Electric Car

In the wake of the new automobile innovation across the globe, Federal Polytechnic, Nekede, Imo State has unveiled its first electric vehicle. Rector, Engr M.C. Arimanwa did the unveiling of

2 Comments

  1. 琳达技术员
    July 30, 21:16 Reply

    I know this if off topic but I’m looking into starting my own blog and was wondering what all is required to get set up? I’m assuming having a blog like yours would cost a pretty penny? I’m not very internet savvy so I’m not 100% positive. Any recommendations or advice would be greatly appreciated. Thanks

  2. I am truly glad to read this blog posts which contains plenty of helpful data, thanks for providing these data.

Leave a Reply