Boeing: suspends 737 MAX production on certification delay
(CercleFinance.com) - Boeing has suspended 737 MAX production as from January, as the timeline for certification and return to service of the grounded aircraft has been extended into 2020.
The Chicago-based planemaker said late on Monday that it is prioritizing the delivery of the airplanes that it currently has in storage (approximately 400 units), and is hence temporarily suspending production on the program beginning next month.
The move comes as the FAA and global regulatory authorities' timeline for certification and return to service has been extended into 2020, it said.
No layoffs are expected at this time, Boeing added.
The suspension nevertheless raises many questions, analysts say.
For example, France's Oddo is surprised that there is no schedule regarding when production will actually resume (some US media sources say that it could begin as early as February), with potential concerns about the extent of the delay.
They add that this halt to production could indeed involve "much more pessimistic scenarios" on the program.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The Chicago-based planemaker said late on Monday that it is prioritizing the delivery of the airplanes that it currently has in storage (approximately 400 units), and is hence temporarily suspending production on the program beginning next month.
The move comes as the FAA and global regulatory authorities' timeline for certification and return to service has been extended into 2020, it said.
No layoffs are expected at this time, Boeing added.
The suspension nevertheless raises many questions, analysts say.
For example, France's Oddo is surprised that there is no schedule regarding when production will actually resume (some US media sources say that it could begin as early as February), with potential concerns about the extent of the delay.
They add that this halt to production could indeed involve "much more pessimistic scenarios" on the program.
Copyright (c) 2019 CercleFinance.com. All rights reserved.