Boeing’s 737 Crisis Deepens As Production Stops For First Time In Two Decades


Boeing’s 737 Crisis Deepens As Production Stops For First Time In Two Decades

SEATTLE/WASHINGTON (Reuters) – Boeing Co said on Monday it would suspend production of its best-selling 737 MAX jetliner in January, its biggest assembly-line halt in more than 20 years, as fallout from two fatal crashes of the now-grounded aircraft drags into 2020.

Boeing, which builds the 737 south of Seattle, said it would not lay off any of the roughly 12,000 employees there during the production freeze, though the move could have repercussions across its global supply chain and the U.S. economy.

The decision at a two-day board meeting came after the Federal Aviation Administration (FAA) refused to approve the jet’s return to service before 2020 and delivered what was seen as a public rebuff to Boeing’s hopes of moving faster.

The 737 MAX has been grounded since March after two crashes in Indonesia and Ethiopia killed 346 people within five months, costing the plane manufacturer more than $9 billion so far.

The decision to halt production will have little immediate impact on airlines that have already seen deliveries halted, forcing many to cancel flights or lease older replacements.

But it marks a deepening of a crisis that has already seen Boeing’s fastest-selling jet grounded worldwide, its safety record scrutinized, customers pressing for compensation and its cornerstone relationship with the FAA placed under strain.

It also threatens to hit U.S. economy, with House representative Rick Larsen calling Boeing’s decision “a body blow to its workers and the region’s economy.”

“The only saving grace is the Boeing leadership has promised not to lay off any workers. I am ready to work with Boeing workers to ensure … they will have access to the necessary resources in the event of a prolonged shutdown.”

Until now Boeing has continued to produce 737 MAX jets at a rate of 42 per month and purchase parts from suppliers at a rate of up to 52 units per month, even though deliveries are frozen until regulators approve the aircraft to fly commercially again.

Boeing’s 737 Crisis Deepens As Production Stops For First Time In Two Decades

Boeing did not say how long the shutdown might last, stressing this was up to the FAA. Previous efforts to predict when the 737 MAX might return to service after software training changes had drawn a sharp response from the U.S. regulator.

The FAA said it would not comment on what it described as a Boeing business decision but would continue to work with global regulators to review proposed changes to the 737 MAX.

“Our first priority is safety, and we have set no timeframe for when the work will be completed,” the agency said.

Analysts said the shutdown was inevitable after Boeing was forced to abandon its end-year goal for returning to service.

“It is not a surprise that they don’t continue producing planes that don’t have a home,” said Adam Pilarski, senior vice president at Virginia-based consultancy AVITAS.


After holding out for months by keeping its factory lines running at optimum speed for a quick return, Boeing said it had decided to put emphasis on delivering some 400 planes that have been produced and stored, once the FAA gives the green light.

Such an emphasis would most quickly release much-needed cash for Boeing, but could cause other problems when production resumes, industry sources said. Supply chains are fragile due to record demand and abrupt changes in speed often cause snags.

Boeing did not say what extra financial impact the 737 MAX shutdown would have ahead of annual results due in January.

A spokesman said it would continue production of a military derivative of the 737, the P-8 maritime surveillance jet.

Boeing’s shares closed down 4% on Monday and fell 1% after hours. Shares in Spirit AeroSystems Holdings Inc, its biggest supplier, fell 2%.

Analysts highlighted General Electric Co, Safran and Senior Plc as other suppliers that could experience disruptions.

7 Star Wars: The Rise Of Skywalker Characters Who May Die

GE and Safran co-produce engines for the 737 MAX and unlike most suppliers are paid mostly once the airplanes are delivered to the airline buyer.

Airlines with 737 MAX jets and orders also face added uncertainty after already scaling back flying schedules and delaying growth plans.

Southwest Airlines, the largest 737 MAX customer, said last week it had reached a compensation agreement with Boeing for a portion of a projected $830 million hit to operating income in 2019 from the grounding.

Reporting by Eric M. Johnson in Seattle, David Shepardson in Washington; Additional reporting by Tim Hepher in Paris, Tracy Rucinski in Chicago and Ankit Ajmera in Bengaluru; Editing by Lisa Shumaker and Himani Sarkar

Boeing’s 737 Crisis Deepens As Production Stops For First Time In Two Decades


  1. I and also my friends happened to be reading through the best points found on your web blog and then unexpectedly I got an awful feeling I had not thanked you for those strategies. Most of the boys are actually as a consequence stimulated to learn all of them and have now actually been taking advantage of these things. Appreciation for genuinely so considerate as well as for utilizing variety of remarkable tips millions of individuals are really desirous to know about. My honest regret for not expressing gratitude to sooner.

  2. That is the right weblog for anybody who wants to find out about this topic. You notice a lot its almost arduous to argue with you (not that I actually would need…HaHa). You definitely put a new spin on a subject thats been written about for years. Great stuff, just great!

  3. Pretty section of content. I just stumbled upon your site and in accession capital to assert that I acquire in fact enjoyed account your blog posts. Any way I’ll be subscribing to your augment and even I achievement you access consistently fast.

  4. I am extremely impressed with your writing skills and also with the layout on your blog. Is this a paid theme or did you modify it yourself? Anyway keep up the excellent quality writing, it is rare to see a nice blog like this one these days..

  5. Hello would you mind letting me know which hosting company you’re utilizing? I’ve loaded your blog in 3 different web browsers and I must say this blog loads a lot faster then most. Can you recommend a good hosting provider at a fair price? Many thanks, I appreciate it!

  6. My husband and i were ecstatic when Raymond managed to finish up his basic research from the ideas he got in your web page. It’s not at all simplistic to simply happen to be releasing helpful hints which usually other folks may have been making money from. And we realize we need you to be grateful to for this. Those illustrations you have made, the straightforward blog navigation, the friendships your site make it easier to instill – it’s all superb, and it’s really facilitating our son in addition to our family imagine that that subject matter is awesome, and that is quite vital. Many thanks for everything!

  7. Thank you for some other informative site. The place else may just I am getting that type of info written in such a perfect manner? I have a project that I’m simply now working on, and I’ve been on the look out for such info.

  8. I will right away grab your rss as I can not find your e-mail subscription link or newsletter service. Do you have any? Kindly let me know in order that I could subscribe. Thanks.

  9. One other issue is that if you are in a circumstances where you don’t have a co-signer then you may want to try to exhaust all of your financing options. You could find many funds and other scholarships and grants that will provide you with funds that can help with education expenses. Thanks for the post.

  10. I wish to convey my love for your kindness supporting those people that need help with this one topic. Your personal dedication to passing the message around became astonishingly informative and has really helped employees just like me to attain their goals. Your new valuable suggestions implies this much a person like me and far more to my office workers. Thanks a lot; from all of us.

  11. It is in reality a great and useful piece of info. I am happy that you simply shared this useful information with us. Please stay us informed like this. Thank you for sharing.

  12. After study a few of the blog posts on your website currently, as well as I truly like your method of blog writing. I bookmarked it to my book marking site listing as well as will be checking back soon. Pls look into my web site as well and also let me understand what you assume.

  13. When I initially commented I clicked the -Alert me when brand-new comments are added- checkbox and also currently each time a remark is included I get 4 emails with the same remark. Exists any way you can remove me from that service? Thanks!

  14. Its fantastic as your other blog posts : D, appreciate it for posting . “Love is like an hourglass, with the heart filling up as the brain empties.” by Jules Renard.

  15. I carry on listening to the newscast speak about receiving boundless online grant applications so I have been looking around for the top site to get one. Could you advise me please, where could i find some?

  16. Attractive component of content. I just stumbled upon your weblog and in accession capital to assert that I get actually loved account your blog posts. Any way I’ll be subscribing on your augment or even I achievement you get right of entry to constantly quickly.

  17. Hmm is anyone else experiencing problems with the images on this blog loading? I’m trying to find out if its a problem on my end or if it’s the blog. Any responses would be greatly appreciated.

  18. One more thing. In my opinion that there are quite a few travel insurance web-sites of trustworthy companies that allow you to enter your trip details and obtain you the quotations. You can also purchase the actual international travel insurance policy on internet by using your credit card. All you need to do will be to enter the travel specifics and you can be aware of the plans side-by-side. Just find the package that suits your financial budget and needs then use your credit card to buy the idea. Travel insurance online is a good way to search for a trustworthy company regarding international travel cover. Thanks for discussing your ideas.

  19. The essentially wonderful point about the Top rated Commenters widget designed into the NoFollow Totally free plugin is the fact which you can set the quantity of commenters who make the record. Fly-by single-comment spammers commonly are not rewarded with do-follow backlinks or identified, however they do opt in in your newsletter. Your loyal visitors are are subsequently rewarded.

  20. Necessary to send you that little or no remark just to many thanks yet again of these spectacular techniques you might have provided in this article. It’s so particularly generous with normal folks just like you to provide unreservedly what many of us may have marketed just as one guide to earn some dough on their own, primarily considering that you might have completed it in case you wanted. The tactics also acted to become fantastic way to understand that most people have similar desire equally as my to know significantly more concerning this condition. I’m there are many easier opportunities beforehand those of you that read through your site post.

  21. Bonjour Sachez que les idées de l’ sujet necessiteraient d’autres avis: Cette opinion est défendable cependant je n’approuve pas les divers posts postés ici. Vous pourriez vérifier certaines valeurs pour etre plus rigoureux… Contactez moi au besoin

  22. Howdy just wanted to give you a quick heads up. The text in your article seem to be running off the screen in Safari. I’m not sure if this is a formatting issue or something to do with web browser compatibility but I figured I’d post to let you know. The design and style look great though! Hope you get the problem resolved soon. Kudos

  23. I cling on to listening to the newscast lecture about getting boundless online grant applications so I have been looking around for the best site to get one. Could you tell me please, where could i acquire some?

  24. you’re really a good webmaster. The site loading speed is incredible. It seems that you are doing any unique trick. In addition, The contents are masterpiece. you have done a great job on this topic!

  25. Hello, you used to write excellent, but the last several posts have been kinda boring… I miss your tremendous writings. Past several posts are just a little bit out of track! come on!

  26. Hey! Do you know if they make any plugins to help with Search Engine Optimization? I’m trying to get my blog to rank for some targeted keywords but I’m not seeing very good gains. If you know of any please share. Thank you!

  27. I¡¦ll right away clutch your rss as I can not in finding your e-mail subscription hyperlink or e-newsletter service. Do you have any? Please let me recognise in order that I may subscribe. Thanks.

  28. Thanks for the sensible critique. Me and my neighbor were just preparing to do a little research on this. We got a grab a book from our local library but I think I learned more clear from this post. I am very glad to see such wonderful information being shared freely out there.

  29. There are certainly a great deal of information like that to take into account. That is a fantastic indicate raise. I supply the thoughts above as general motivation yet clearly there are questions like the one you raise where the most vital point will certainly be working in truthful good faith. I don?t know if finest techniques have emerged around things like that, but I make certain that your job is plainly determined as a fair game. Both kids as well as ladies really feel the effect of just a moment?s satisfaction, for the remainder of their lives.

  30. Another issue is that video games are usually serious in nature with the most important focus on studying rather than leisure. Although, we have an entertainment part to keep your young ones engaged, each game will likely be designed to work on a specific skill set or area, such as math or research. Thanks for your posting.


Please enter your comment!
Please enter your name here