Boeing to Temporarily Suspend the Production of Max 737

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The Boeing Company on Monday said, that it has decided to halt the production of 737 Max aeroplanes from January as the company are facing issues to get safety approvals from regulators to return to the skies after 2 fatal air crashes. The Max 737 has been grounded since the March after the 2 deadly crashes in Indonesia and Ethiopia that killed around 346 people.

The production will stop in the company’s plant in Renton, Washington where there is a strength of 12,000 employees. The company stated that they would continue to pay the workers and do not plan on laying off any of the employees at this time.

Boeing planned to have the aircraft back in the sky by the end of this year, but the US regulators didn’t approve of the same and therefore didn’t certify. The decision reflects that it would take more effort to get approval from the U.S. Federal Aviation Administration and other global regulators. The Chicago based company stated that they would continue to evaluate their progress towards service goals and move towards resuming production and making deliveries accordingly. Boeing also added that they must ensure all requirements are fulfilled and all questions posed by their regulators are answered. There are around 400 planes in storage and their deliveries will be prioritized.

In India, SpiceJet had ordered around 205 aircraft from Boeing, out of which 13 have already been delivered. However, these aeroplanes are grounded due to the FAA’s ongoing safety reviews. Boeing’s decision to suspend the production 747 Max has caused issues for airlines across the globe as huge sums of money has been lost on cancelled flights and inefficient use of fuel by the planes. More than 4% shares of Boeing have fallen on Monday.

Boeing’s large network of 900 companies that produce bodies, engines and other parts will also be greatly affected by the shutdown. Layoffs are likely in the future.

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