Boeing

Boeing expects a short shutdown of 737 Max production

Summary

Boeing expects a short shutdown of 737 Max production Boeing’s new CEO Dave Calhoun says he wants to restore production of the 737 Max a few months before regulators allow them to return to service.. Boeing halted aircraft production in […]

Boeing expects a short shutdown of 737 Max production

Boeing’s new CEO Dave Calhoun says he wants to restore production of the 737 Max a few months before regulators allow them to return to service..

Boeing halted aircraft production in January as flight ban caused by two plane crashes dragged on longer than expected.. The company’s shares fell 3% after information that the problem with the 737 Max will be resolved no earlier than mid-2020.

The production shutdown has already cost thousands of jobs to the aircraft designer’s partners, and raised concerns about the impact of the crisis on the American economy..

Boeing expects production hiatus to last no more than a few months.

«We must re-launch our most popular model line», – said by Dave Calhoun at the conference call.

In total this week, the company’s shares have fallen in price by 5%.

The 737 Max crisis has affected the entire supply chain, which includes General Electric and Spirit AeroSystems. Treasury Secretary Stephen Mnuchin assessed Boeing’s problems could cut the growth of the US economy by 0.5% this year.

Boeing expects a short shutdown of 737 Max production

On January 10, Spirit AeroSystems announced that more than 2,800 employees have lost their jobs due to the prolonged flight ban.

Calhoun himself noted that Boeing is not planning layoffs due to production hiatus.

Internal emails recently leaked by the company showed Boeing was violating pilot retraining regulations and pressured regulators. The correspondence also showed that the employees themselves doubted the safety of the aircraft model. Against the background of all that is happening, Dave Calhoun promised to increase the transparency of the company’s activities, restore its former reputation and raise morale within the workforce.. 

Federal Aviation Administration has already stated several times that it does not have a firm deadline for aircraft recertification.