Boeing Co has decided to suspend production of its best-selling model, the 737 MAX, starting in January due to the repercussions.
For Boeing, this is the most significant assembly line shutdown in over 20 years.
Since March of this year, Boeing 737 MAX aircraft have been banned from flying worldwide following two air disasters that occurred within five months, in which a malfunction of the automated flight stabilization system (MCAS) designed to prevent the aircraft from stalling was suspected.
The company hoped the aircraft would return to service by the end of this year following changes made to the software systems and pilot training programs, but the Federal Aviation Administration (FAA) announced it would not approve the resumption of 737 MAX flights before 2020.
Boeing is one of the largest American exporters. Although the company does not intend to make layoffs, the production suspension will likely affect suppliers and, more broadly, the economy. On Monday, Boeing announced it would prioritize the delivery of the 400 737 MAX aircraft it has produced since March instead of putting more aircraft into production.
Due to the problems with the 737 MAX, Boeing aircraft deliveries have been cut in half. In the period from January to November 2019, Boeing delivered 345 aircraft, compared to 704 aircraft in the same period last year.
Source: Economica
Frequently Asked Questions
Why did Boeing suspend 737 MAX production?
Boeing suspended production due to the ongoing grounding of the aircraft and the delay in regulatory approval for its return to service.
When will the Boeing 737 MAX fly again?
The FAA has indicated that the aircraft will not be cleared for flight until at least 2020, following software updates and pilot training revisions.
Will there be layoffs at Boeing due to this suspension?
Boeing has stated that it does not currently plan to lay off employees at the affected production facilities.