Aero Spirit Systems, a major supplier to Boeing’s 737 MAX aircraft, said it would cut 2,800 jobs at its Kansas plant as a result of boeing’s production of the aircraft,media reported. The Kansas plant is laying off 16 percent of the company’s human resources, the statement said.
In addition, “smaller-scale layoffs” are expected later this month at two plants in Oklahoma.
On October 29, 2018, a Boeing 737-8 aircraft belonging to the 737MAX series crashed into the sea, killing all 189 people on board. On March 10, 2019, an Ethiopian Airlines Boeing plane of the same type crashed, killing all 157 people on board.
Subsequently, many countries and regions around the world grounded or banned the 737 MAX series of aircraft.
On January 6, 2020, American Airlines and Mexican Airlines announced separately that they had reached a compensation agreement with Boeing over the loss of grounding, though neither company gave details of the compensation.
American Airlines estimated in October that the suspension could reduce its 2019 pre-tax earnings by $540 million.