Le Bourget 2016 - Photo: Per Gram
News Release Issued: Dec
16, 2019 (5:04pm EST)
To view this release
online and get more information about Boeing, visit: https://boeing.mediaroom.com/2019-12-16-Boeing-Statement-Regarding-737-MAX-Production
Boeing Statement Regarding 737 MAX Production
- Boeing suspends 737 MAX production starting in January due to certification moving into 2020
- Reduced production output enables prioritization of stored aircraft delivery
- No layoffs or furlough expected at this time
CHICAGO, Dec. 16,
2019 /PRNewswire/
-- Safely returning the 737 MAX to service is our top priority. We know that the
process of approving the 737 MAX's return to service, and of determining
appropriate training requirements, must be extraordinarily thorough and robust,
to ensure that our regulators, customers, and the flying public have confidence
in the 737 MAX updates. As we have previously said, the FAA and global
regulatory authorities determine the timeline for certification and return to
service. We remain fully committed to supporting this process. It is our duty to
ensure that every requirement is fulfilled, and every question from our
regulators answered.
Throughout the grounding of the 737 MAX,
Boeing has continued to build new airplanes and there are now approximately 400
airplanes in storage. We have previously stated that we would continually
evaluate our production plans should the MAX grounding continue longer than we
expected. As a result of this ongoing evaluation, we have decided to prioritize
the delivery of stored aircraft and temporarily suspend production on the 737
program beginning next month.
We believe this decision is least
disruptive to maintaining long-term production system and supply chain health.
This decision is driven by a number of factors, including the extension of
certification into 2020, the uncertainty about the timing and conditions of
return to service and global training approvals, and the importance of ensuring
that we can prioritize the delivery of stored aircraft. We will continue to
assess our progress towards return to service milestones and make determinations
about resuming production and deliveries accordingly.
During this time, it is our plan that
affected employees will continue 737-related work, or be temporarily assigned to
other teams in Puget Sound. As we have throughout the 737 MAX grounding, we will
keep our customers, employees, and supply chain top of mind as we continue to
assess appropriate actions. This will include efforts to sustain the gains in
production system and supply chain quality and health made over the last many
months.
We will provide financial information
regarding the production suspension in connection with our 4Q19 earnings release
in late January.
More than 300 people died when two 737 Max aircraft crashed in Indonesia and Ethiopia after reported problems with a new feature.
The 737 is produced in Seattle, Washington. Boeing is one of the US's largest exporters.
Last week, the US Congress was told that regulators allowed the 737 Max to continue flying after the first crash in October last year, even though it knew there was a risk of further disasters.
Boeing shares fell more than 4% on Monday amid speculation the airline would announce a production suspension.
The manufacturer said in a statement that it had 400 737 Max aircraft in storage. It said it planned for affected employees to "continue 737-related work, or be temporarily assigned to other teams".
Boeing to temporarily halt 737 Max production in January
Boeing will temporarily halt production of its troubled 737 Max airliner in January, the manufacturer said.
Production of the jet had continued despite the model being grounded for nine months after two deadly crashes.More than 300 people died when two 737 Max aircraft crashed in Indonesia and Ethiopia after reported problems with a new feature.
The 737 is produced in Seattle, Washington. Boeing is one of the US's largest exporters.
Last week, the US Congress was told that regulators allowed the 737 Max to continue flying after the first crash in October last year, even though it knew there was a risk of further disasters.
Boeing shares fell more than 4% on Monday amid speculation the airline would announce a production suspension.
The manufacturer said in a statement that it had 400 737 Max aircraft in storage. It said it planned for affected employees to "continue 737-related work, or be temporarily assigned to other teams".
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