After nine months of Boeing 737 Max Airliner being grounded after multiple complaints of technical issues, the company has decided to temporarily halt the production of the 737 Max airliner from January. Boeing is working on redesigning the automated control system which is expected to be the primary issue.
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The 737 Max was grounded after a crash in Ethiopia in March 2019.
The company in a statement clarifies that it would not lay off workers associated with the 737 Max.
The halt in the production is very likely to affect suppliers and the wider economy as the grounding of the aircraft has only cost Boeing around $9bn.
“Safely returning the 737 Max to service is our top priority,” a representative from Boeing said.
The Federal Aviation Authority’s analysts warned of more such crashes over the lifetime of the aircraft unless changes were made to its design.
After the decision, the shares of Boeing fell by more than 4% on December 16.
In two deadly crashes of 737 Max Aircraft in Indonesia and Ethiopia more than 300 people had lost their lives.
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The Boeing Company is an American multinational corporation that designs, manufactures, and sells rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide. The company also provides leasing and product support services. Boeing was founded by William Boeing in Seattle, Washington on July 15, 1916. The present corporation is the result of the merger of Boeing with McDonnell Douglas on August 1, 1997. Then chairman and CEO of Boeing, Philip M. Condit, assumed those roles in the combined company, while Harry Stonecipher, former CEO of McDonnell Douglas, became president and COO. Boeing is organized into five primary divisions: Boeing Commercial Airplanes (BCA); Boeing Defense, Space & Security (BDS); Engineering, Operations & Technology; Boeing Capital; and Boeing Shared Services Group. More Info
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