Boeing confirms it will suspend production of 737 MAX in January and has no plans to cut jobs

BEIJING( 17 (Xinhua) — Boeing co., Boeing co., confirmed late Monday that it would suspend production of the 737 MAX in January, a drastic step after the Federal Aviation Administration (FAA) announced that its review of the aircraft would continue into next year. Boeing’s decision comes months after its best-selling narrow-body aircraft was grounded around the world, adding to one of the worst crises in the 100-year history of the aircraft maker.

The measure will affect the aerospace giant’s supply chain and the broader economy, and pose more problems for airlines that have lost hundreds of millions of dollars and canceled thousands of flights as a result of the 737MAX suspension.

Boeing said it does not plan to cut or force any workers to take time off from its 737MAX plant in Renton, Washington, during the shutdown. Some of the 12,000 employees there will be temporarily reassigned to other jobs.

Boeing confirms it will suspend production of 737 MAX in January and has no plans to cut jobs

It is unclear how long Boeing plans to shut down its 737 MAX production line, as it will depend on when regulators approve the return of the aircraft. U.S. airlines canceled flight plans for the model at least until March. American Airlines said last week it would extend the suspension of the aircraft until April next year.

In a statement, Boeing said: “We know that the process of approving the 737 MAX’s re-entry and determining appropriate training requirements must be thorough and robust to ensure that our regulators, customers and passengers have confidence in the 737 MAX update.” The timetable for certification and recovery services will be determined by the FAA and national regulatory authorities. We remain fully committed to supporting this process. We have a responsibility to ensure that every requirement is met and that every question raised by regulators is answered. “

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