Boeing is considering suspending or further cutting production of its 737 MAX aircraft, people familiar with the matter said, as uncertainty remains over whether the aircraft will resume flights. Boeing is increasingly considering a moratorium on production to be the most viable option, the report said. Boeing’s board will meet in Chicago on Sunday local time, with a decision as early as Monday.
In testimony before Congress on Wednesday, Federal Aviation Administration Director Steve Nixon confirmed that the Boeing 737 MAX would not be approved for re-entry before the end of the year.
Repeated delays in the re-entry of the Boeing 737MAX have created uncertainty for airline customers such as Southwest Airlines and American Airlines. The suspension of the aircraft has cost the airlines hundreds of millions of dollars in lost revenue.
“We will continue to work closely with the FAA and global regulators to ensure MAX certification and safe recovery services,” Boeing said on Sunday. We will continue to evaluate production decisions based on the timing and conditions of re-entry, which are subject to regulatory approval and may vary depending on jurisdiction. ”
The move follows a 20 per cent cut in the 737 MAX’s productivity in April, from 52 to 42 a month.
The company warned investors in July that further production cuts or production of the model could be made if delays increased.