Production Halted for MAX, announced by Boeing
The year 2019 was not very fruitful for the American airliner manufacturer. Boeing in a recent announcement made on Monday, 16th December 2019 said that 737 MAX production will be halted from January till further notice. Once the bestseller and the backbone of aviation industry, the latest variant of Boeing 737 is not going to be assembled till the backlog is cleared. After the Federal Aviation Administration passed a verdict that MAX will not be flying before 2020, Boeing was considering options already.
The 2-day board meeting of American aircraft manufacturer was held in Chicago. Initially, the plan was to cut the productions but the announced made was totally unexpected.
Boeing said in a statement on Sunday the company “will continue to assess production decisions based on the timing and conditions of return to service, which will be based on regulatory approvals and may vary by jurisdiction.”
Changes in MAX production will impact the US economy immensely. The grounding of MAX and deliveries already has affected the national trade deficit. Boeing has already confirmed a separate 6.1 $ Billion for compensation of financial damages for its clients. In addition, 3.6 $ Billion is already injected to cover additional production costs. After the announced, Boeing’s share dropped by 3.4% along with the vendors of Boeing 737 parts.
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