Board issues statement temporarily suspending production of 737 Max with no lay offs predicted

Boeing has issued a statement temporarily suspending production of the 737 Max.

The decision follows the delay in the certification of the aircraft while regulatory approval of adjustments to the aircraft’s flight-control software take place. The company states that the decision to suspend production would be “least disruptive to maintaining long-term production system and supply chain health.”

Safe return of Max is “top priority”

A statement from the company read: “Safely returning the 737 Max to service is our top priority. 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. As we have previously said, the FAA and global regulatory authorities determine the timeline for certification and return to service. We remain fully committed to supporting this process. It is our duty to ensure that every requirement is fulfilled, and every question from our regulators answered.”

Throughout the grounding of the 737 Max, Boeing has continued to build new aircraft and there are now approximately 400 in storage. Boeing has stated it will “prioritise the delivery of stored aircraft and temporarily suspend production on the 737 programme beginning next month.”

Suspension is least disruptive to production and supply chain health

The statement continued: “We believe this decision is least disruptive to maintaining long-term production system and supply chain health. This decision is driven by a number of factors, including the extension of certification into 2020, the uncertainty about the timing and conditions of return to service and global training approvals, and the importance of ensuring that we can prioritize the delivery of stored aircraft. We will continue to assess our progress towards return to service milestones and make determinations about resuming production and deliveries accordingly.”

Boeing added that employees will continue 737-related work, or be temporarily assigned to other teams in Puget Sound.

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