Boeing May Have to Halt 737 MAX Production

Credit: Stephen Brashear/Getty Images

The company warned investors on Wednesday that they can expect production to be slowed or halted.

Aerospace giant Boeing has continued to produce its bestselling 737 MAX Jet, but at a slower pace than before. The company has had to face many slowdowns over technological concerns after it was discovered that the cause of the two previous crashes was a software failure that affected the planes’ controls. The planes have been grounded since mid-March over the two fatal crashes which, combined, killed more than 300 people.

It is not at all clear when the 737 MAX will return to service. Boeing has stated its hopes for the plane to be ready to take off again during the third quarter of 2019. Boeing CEO Dennis Muilenburg told reporters that he believes a temporary shutdown of 737 MAX production is “not something we want to do, but an alternative that we have to prepare for.”

Boeing already warned its investors that they can expect a $5 billion hit to the company’s profits as a result of their inability to deliver the 737 MAX to customers. Boeing reported its biggest-ever loss in the second quarter over the grounding of its bestselling planes. It is likely that Boeing will face more legal challenges as well after a fund to distribute $100 million was not well received by the families of the deceased’s lawyer.

Written by  
5 years ago
Article Tags:
· · · ·