A Temporary Halt In 737 MAX Production Anticipated By Boeing Suppliers

Following comments from the United States airline regulator the Federal Aviation Administration (FAA) that there is no deadline for the returning into service of Boeing’s 737 Max planes, globally grounded since March this year, the suppliers, customers and financers of the US plane maker are anticipating a complete freeze on production of 737 planes by the company for the first time in 20 years.  The 737 Max planes are the best selling ones of the company. Stakeholders expect that it would not be until late into the New Year that the 737 Max planes would be allowed to fly again by regulators.

It is likely that the assembly of the jet would be stopped by Boeing for the time being, said reports quoting some suppliers of the company related to the jets. Reports also stated that the company could also ask some suppliers to keep producing so that disruption to the production process and the supply chain is minimized. .

Suppliers, financers and some customers of Boeing predict that an announcement for the same could be made to this effect by the company’s board.

Reports suggested that there were two issues that the company was considering – whether to cut or to halt production of the 737 Max planes. All of the 737 plans all across the world had been grounded after two fatal crashes involving the planes within a span of just five months.

Last week, the FAA said that it would not give safety clearance to the 737 Max planes until at least before 2020.

Following the grounding of the planes, Boeing had already downsized production of the planes to just 42 units every month compared to 52 planes before the worldwide grounding of the planes in March ordered by regulators.

It was more likely that Boeing would go in for a temporary shutdown of the production of the planes instead of implementing another cut, said reports quoting sources briefed on the matter. Sources also said that it would potentially take a few weeks before production could be halted.

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 said on Sunday

(Adapted from TheGlobeAndMail.com)

 

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