Aerial photo showing Boeing 737 Max airplanes parked at Boeing Field in Seattle, Washington, October 20, 2019.
Gary He | Reuters
Boeing is planning to suspend production of its beleaguered 737 Max planes next month, people familiar with the matter said Monday, a drastic step after the Federal Aviation Administration said its review of the planes would likely continue into next year.
The decision is likely to and present further complications for airlines, which have lost hundreds of millions of dollars and canceled thousands of flights without the planes in their fleets.
Boeing last week acknowledged that that regulators’ review of the planes — grounded since March after two crashes killed 346 people — would last until the following year, longer than the end-of-year approval the Chicago-based manufacturer was targeting.
The manufacturer had repeatedly warned investors that it could further cut or suspend production of the planes altogether if the flight ban lasts longer than expected. Boeing slashed production by 20% in April to 42 a month after regulators ordered airlines to stop flying the planes.
Close to 400 Max planes were in global fleets when regulators grounded the planes in mid-March after two fatal crashes in a span of five months. Since then, Boeing has produced some 400 more of the jetliners that are parked at its facilities in Washington state and elsewhere. The grounding, now in its 10th month, has prevented Boeing from delivering planes to customers.
Boeing does not plan to lay off or furlough workers at the Renton, Wash. factory where the 737 Max is produced during the production pause, according to a source familiar with the matter, a relief to the some 12,000 workers there.
Boeing shares, which fell more than 4% during the regular session, were down 1% in after-hours trading.
This is breaking news. Please check back for updates.
