Boeing says it will temporarily stop producing its 737 Max jet as it struggles to get approval to put the plane back in the air. The Max has been grounded since crashes in Indonesia and Ethiopia that killed 346 people.
FILE - In this April 8, 2019, file photo Boeing 737 Max 8 jets are parked behind a stop sign indicating a traffic crossing at a Boeing Co. production facility in Renton, Wash. On Monday, Dec. 16, shares of Boeing are falling before the opening bell on a report that the company may cut production of its troubled 737 Max or even end production all together.
The Chicago-based company said production would halt at its plant with 12,000 employees in Renton, Washington, near Seattle. The Max is Boeing’s most important jet, but it has been grounded since March after crashes in Indonesia and Ethiopia that killed total of 346 people, and federal regulators told the company last week that it had unrealistic expectations for getting the plane back into service.“We believe this decision is least disruptive to maintaining long-term production system and supply chain health,” the statement said.
Some analysts fear that a total production halt will cut cash flow to companies that make parts for the Max. Without getting specific, Boeing’s statement said it will keep customers, employees and the supply chain at “top of mind as we continue to assess appropriate actions.
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