Boeing Co Is Considering to Cut or Halt Production of Its Grounded 737 MAX

Boeing Co Is Considering to Cut or Halt Production of Its Grounded 737 MAX

Boeing Co is contemplating whether or not to cut or halt production of its grounded 737 MAX after the Federal Aviation Administration stated last week it might not approve the plane’s return to service before 2020, a person briefed on the matter stated on Sunday.

The largest US planemaker’s board of directors is holding a regular two-day meeting in Chicago starting Sunday, and the company might make an announcement on production plans as soon as late Monday, the individual stated.

The Seattle Times reported Sunday the board is contemplating a proposal from top management to shut down 737 manufacturing temporarily. The person briefed on the matter a temporary shutdown is possible than another production cut; however, it could probably take a couple of weeks before manufacturing might be halted.

Boeing stated on Sunday the company “will proceed to assess production decisions based on the timing and circumstances of return to service, which might be based on regulatory approvals and might differ by jurisdiction.”

Boeing has stated if it didn’t receive approval to start deliveries before the end of the year, it might be forced to further slow production or temporarily shut down the MAX production line, a move that might have repercussions throughout its global supply chain.

On Thursday, Boeing abandoned its goal of winning approval this month to unground the 737 MAX after Chief Executive Dennis Muilenburg met with FAA Administrator Steve Dickson. Dickson stated on Wednesday he wouldn’t clear the plane to fly before 2020 and disclosed the company has an ongoing investigation into 737 production issues in Renton, Washington.

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