This archive report was first published on 18 December 2019.
On the heels of two fatal crashes that claimed over 300 lives, Boeing has announced the suspension of 737 Max production, a move that will likely result in additional losses for the company.
The decision comes after the FAA stated that its review of the 737 Max would continue into next year, with the agency vowing to conduct a 'thorough and robust' assessment to ensure public confidence in the aircraft.
Despite the grounding, Boeing had continued to build the 737 Max at a slower pace, with the hope of receiving approval for the plane to fly again by the end of the year.
However, with the production halt, it remains unclear when the 737 Max will be allowed to return to service.
According to CNBC, Boeing has produced 400 additional 737 Max planes, and the company believes that halting production will enable it to deliver the stored planes once the grounding is lifted.
Notably, Boeing has stated that it will not lay off its workers at the Renton factory where the 737 Max is produced, with around 12,000 employees temporarily reassigned during the production pause.
As the FAA continues its review, Boeing has emphasized the importance of a thorough and robust approval process, stating, '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.'
