This archive report was first published on 17 December 2019.
Boeing's decision to temporarily halt production of the 737 Max aircraft has sent shockwaves through the American economy, affecting suppliers across the country and plunging the company deeper into crisis.
The move comes as Boeing continues to grapple with the fallout from two crashes that killed 346 people, with the company still unable to win approval from global regulators to let the plane fly again.
According to a statement from Boeing, the decision to halt production was 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 the importance of ensuring that the company can prioritize the delivery of stored aircraft.
Boeing said it intends to redeploy the workers building the Max to other projects, avoiding layoffs or furloughs for the time being.
The company's shares were down more than 4 percent on Monday, while shares of Spirit AeroSystems, which makes the fuselage of the Max, fell nearly 2 percent.
Experts say the decision will have enormous ripple effects, with very real effects on many people's lives, particularly in the run-up to the holidays.
However, because Boeing is not planning significant layoffs and its suppliers are distributed around the country, the overall effect on the broader economy is likely to be muted for now.
Boeing had already reduced production at the factory after the crashes, and the decision to halt production was first reported by The Wall Street Journal.
More than nine months after the Max was grounded, Boeing continues to encounter hurdles with the Federal Aviation Administration and other global regulators as it works to return the plane to service.
As a result, Boeing has repeatedly pushed back the projected date of a return to service for the Max, with the latest estimate suggesting it will not fly until 2020.
