Boeing suspends production of troubled 737 MAX jetliner

A Boeing Co. 737 MAX 9 jetliner sits on the production floor at the company’s manufacturing facility in Renton Washington U.S

A Boeing Co. 737 MAX 9 jetliner sits on the production floor at the company’s manufacturing facility in Renton Washington U.S

Boeing announced Monday it will temporarily halt production of 737 Max jets beginning in January after USA regulators ruled out any clearance for the troubled planes for flight until next year.

Boeing's shares closed down 4 percent on Monday and fell 1 percent after hours.

Boeing 737 Max aircraft were grounded in California in March this year. Boeing is now struggling to get approval from regulators to put the aircraft back in the air.

Boeing's statement on the 737 MAX production suspensionCHICAGO, Dec. 16, 2019 - Safely returning the 737 MAX to service is our top priority. The company has since then been paying more fuel costs, as it has been flying more fuel-consuming planes in place of 737 Max. It now has approximately 400 of the airplanes in storage.

This included the 12,000 employees at the company's Seatle-area plant where 737 Max jets are built, Bloomberg News reported, citing unnamed sources.

"A second FAA email to congressional staff last week said: "[Dickson is] concerned that Boeing continues to pursue a return-to-service schedule that is not realistic.

Boeing announced this week that it would be temporarily suspending the production of its 737 Max 8 aircraft.

After holding out for months by keeping its factory lines running at optimum speed for a quick return, Boeing said it had made a decision to put emphasis on delivering some 400 planes that have been produced and stored, once the FAA gives the green light.

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The manufacturer said in a statement that it had 400 of the 737 Max aircraft in storage.

Just a year ago, the planemaker opened a £40m factory employing 75 people making parts for planes including the 737 Max.

It said it did not expect any layoffs or furloughs at this stage.

The Federal Aviation Administration and authorities around the globe will determine when the Max jets are allowed to fly again. This includes efforts to maintain the improvements in the production system and in the quality and health of the supply chain that have been achieved in recent months.

Southwest Airlines' decision to further push the return of the aircraft comes days after the airline company reached a partial compensation deal of $125 billion, owing to the losses it incurred because of the grounding of the 737 Max. Boeing has missed several estimates of a return date for the plane, and the company did not give a date on Monday.

"We will continue to evaluate production decisions based on timetable and conditions of return to service, which will be based on regulatory approvals and may vary depending on jurisdiction", the spokesman added.

In this region Fiji Airways has two Max aircraft and has had to charter aircraft to cover for the grounded planes.

"Despite its own calculations, the FAA rolled the dice on the safety of the traveling public and let the 737 MAX continue to fly until Boeing could overhaul its MCAS software", said Peter DeFazio (D-OR-04), Chair of the House Committee on Transportation and Infrastructure, in a hearing on the 737 Max last week.

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