Business World

Boeing could curb production of 737 Max airplanes

American multinational corporation, Boeing, is considering curbing production of the troubled 737 Max. The company could either suspend production or further reduce the production level.

An official announcement is expected on Monday, after the US markets close.

Boeing CEO Dennis Muilenburg warned in July that Boeing would be forced to consider slowing or shutting its 737 Max production if there were any further delays in winning approval to fly the 737 Max again beyond the fourth quarter.

That delay became apparent at a meeting last week between the Federal Aviation Administration (FAA) and Boeing in which the company said it came away understanding the 737 Max jet would not be cleared to fly this calendar year.

The planes were grounded worldwide in March, this year after two fatal crashes killing 346 people — a Lion Air jet into the Java Sea in October 2018 and an Ethiopian Airlines plane near Addis Ababa in March.

Boeing has been building 42 737 Max jets a month since the grounding, so as not to cause hardship for suppliers or be forced to lay off workers it will need later. But the company has not been able to deliver the planes. That halt comes at a tremendous cost to Boeing, since it makes most of the revenue it gets for selling a plane once it is delivered.

The company has already said it will take until at least 2021 to deliver all the planes it has built since the grounding, since airlines won’t be ready to accept hundreds of additional planes at once. Regulators also have to inspect each aircraft.

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