‘No job cuts’ as Boeing scales back production of 737 MAX
Boeing said it will now significantly scale back production of 737 MAX aircraft with no end in sight to the worldwide grounding of the planes.
It will cut the production rate from a current 52 jets a month down to 42 starting later this month.
Boeing said it will not lead to job cuts but didn’t say how long the production slowdown will last.
It will likely continue at least until the company is confident a software fix for the MCAS system will get approval.
However, it will still need approval from other aviation safety regulators around the globe which could continue to hold up the 737 Max production line.
Boeing’s long order book for the jets is predominantly from foreign carriers, especially in Asia.
In a statement, Boeing CEO Dennis Muilenburg said: "Safety is our responsibility, and we own it. When the MAX returns to the skies, we’ve promised our airline customers and their passengers and crews that it will be as safe as any airplane ever to fly."
The FAA said last week that Boeing needs additional time to tweak its software fix and will likely still need several weeks to complete it.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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