Don’t miss the latest developments in business and finance.

Boeing says to halt 737 MAX production next month

Image
AFP Washington
Last Updated : Dec 17 2019 | 8:55 AM IST

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 which 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 prioritise the delivery of stored aircraft and temporarily suspend production on the 737 program beginning next month."

Also Read

First Published: Dec 17 2019 | 8:55 AM IST

Next Story