Washington - US aircraft manufacturer Boeing on Monday said it
will temporarily suspend production of its troubled 737 MAX jets in
January after the model was connected to deadly accidents in
Indonesia and Ethiopia.
"Throughout the grounding of the 737 MAX, Boeing has continued to
build new airplanes and there are now approximately 400 airplanes in
storage," the company said in a statement.
"We have previously stated that we would continually evaluate our
production plans should the MAX grounding continue longer than we
expected.
"As a result of this ongoing evaluation, we have decided to
prioritize the delivery of stored aircraft and temporarily suspend
production on the 737 program beginning next month."
Boeing's statement did not say how long the production halt would
last, but noted there would be no layoffs or furloughs "expected at
this time."
Affected employees would "continue 737-related work, or be
temporarily assigned to other teams," according to Boeing, one of the
top private employers in the United States.
The company said the decision was driven by "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."
The move comes days after the US Federal Aviation Administration
(FAA) announced that the recertification process for the 737 MAX jets
would extend into next year, suggesting there was still a long way to
go.
"We have a number of milestones yet to complete," Steve Dickson,
administrator of the FAA, told the House transportation committee.
Global aviation regulators grounded the aircraft in March after
accidents in Indonesia and Ethiopia resulted in the deaths of 346
people.
Boeing is one of the largest exporters in the US. The 737 MAX,
produced near Seattle, Washington, is the manufacturer's most
important aircraft.
Boeing shares fell more than 4 per cent on Monday amid speculation
the company would announce a production suspension.