Published on Thursday, July 25, 2019

Boeing considers shutting down 737 Max production


Boeing is seriously considering suspending production of the 737 Max if it isn't cleared to fly again soon.

As the aircraft manufacturer revealed it had made a second quarter loss of nearly $3 billion, down 35% year on year, CEO Dennis Muilenburg said a temporary shutdown of Max production was on the cards.
"Should our estimate of the anticipated return to service change, we might need to consider possible further rate reductions or other options," he said.

The 737 Max has been grounded since March after two crashes in less than six months killed 346 people.
Muilenburg said the company is still producing up to 42 Max jets a month, down from 52 a month prior to the two crashes, but these are lying idle and cannot be delivered until the plane is cleared to fly again.

As a result, it is considering a 'temporary shutdown of the Max production', added Muilenburg.

Boeing reckons the Max could be cleared to fly by the end of the year, but there are serious doubts among air safety bodies that this will be achieved.

Boeing says any production halt would be a temporary measure and has no plans to ditch the Max for good.

Boeing announced last week that it would take a $4.9 billion net charge related to the Max grounding.
As investigations into the two crashes continue, Boeing has been working on fixes for its Mcas anti-stall flight control software, as well as other issues identified by regulators, including the US Federal Aviation Administration.

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