Boeing slashes 737 MAX production
Boeing has announced it would cut the production schedule of its 737 aircraft line following the two recent crashes that have seen the 737 MAX grounded worldwide.
The aerospace giant plans to trim production to 42 planes per month, down from 52, starting from mid-April.
Boeing also announced it was establishing an advisory panel to review its company-wide policies for designing and developing planes.
The Federal Aviation Administration earlier last week said more work was needed before the aerospace giant could even submit a proposed fix to an issue that is believed to be a factor in the disasters. Chief Executive Dennis Muilenburg described the production cut as temporary.
And it said it would not affect current employment levels for the 737 and related programs.
“We are coordinating closely with our customers as we work through plans to mitigate the impact of this adjustment,” Muilenburg said in a statement.
“We will also work directly with our suppliers on their production plans to minimize operational disruption and financial impact of the production rate change.”
Boeing has continued to manufacture 737s since the March 10 Ethiopian Airlines crash killed 157 people, the second deadly crash in five months after an October 2018 Lion Air crash killed 189 people in Indonesia. But, Boeing has been unable to make deliveries of the planes to customers, a key stoppage that will dent revenues. Boeing is scheduled to report first-quarter results on April 24.
On Thursday, an initial report by the Ethiopia Transport Ministry found the crew of the doomed plane repeatedly followed procedures recommended by Boeing, confirming concerns about the flight control system on the plane, especially its anti-stall system suspected of being a factor in the crashes.
Boeing said the new advisory panel will be led by retired US Navy Admiral Edmund Giambastiani, former vice chairman of the US Joint Chiefs of Staff.
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