WASHINGTON --- Boeing Co is considering whether to cut or halt production of its grounded 737 MAX after the Federal Aviation Administration said last week it would not approve the plane’s return to service before 2020, a person briefed on the matter said on Sunday.
The largest U.S. planemaker’s board of directors is holding a regular two-day meeting in Chicago starting Sunday and the company could make an announcement on production plans as soon as late Monday, the person said.
The Seattle Times reported Sunday the board is considering a proposal from top management to temporarily shut down 737 production. The person briefed on the matter told Reuters a temporary shutdown is more likely than another production cut, but it would potentially take a few weeks before production could be halted.
Boeing said in a statement Sunday the company “will continue to assess production decisions based on the timing and conditions of return to service, which will be based on regulatory approvals and may vary by jurisdiction.”
Boeing has said if it did not receive approval to begin deliveries before the end of the year it could be forced to further slow production or temporarily shut down the MAX production line, a move that would have repercussions across its global supply chain. (end of excerpt)
Click here for the full story, on the Reuters website.
(EDITOR’S NOTE: Somewhat surprisingly, Boeing has been producing 737MAX aircraft at the full rate of 42 aircraft per month since the type was grounded in March.
This means it has completed about 340 aircraft it cannot deliver and must stockpile, and for which it cannot be paid while it continues to pay its suppliers.)