The best regulated crypto exchange
Find out why?
50 BTC prize pool!
Get your share!
I'm in

Boeing may suspend the production of 737 Max with no launch in sight

By Yana Berman

Hopes of getting the troubled model back in the air before the end of 2019 are fading

Boeing's board is considering whether to cut or suspend the production of its grounded plane 737 Max as the model is unlikely to be back in air before the year's end,the Financial Times reports.

The US aircraft manufacturer will have to deal with another set of requirements before the model will be able to resume flights. Its hopes to return to air as quick as possible were repeatedly rejected by the US Federal Aviation Administration and regulators from Europe to China.

According to the FT, during the Boeing board meeting in Chicago that took place on Sunday and will continue on Monday, the directors will discuss the possible cut or suspension of 737 Max's production.

The company's spokesman said that Boeing continues to "work closely with the FAA and global regulators towards certification and the safe return to service of the Max."

737 Max was involved in two major crashes in October 2018 and March 2019 that killed 346 people. Both fatal accidents were blamed on faults on flight deck equipment in the new airliner.

Later the model was grounded by regulators. 383 planes of the grounded ones were already in service, while other 400 are currently waiting to be delivered to customers.

737 Max's production was cut to 42 planes per month, which led to multiple charges. The company unveiled that its profits had nosedived by more than a half, as Boeing paid around $5.6bn (£4.2bn, €5bn) in customer compensations.

FT states that Boeing hoped to raise the output to 57 per month in 2020, however, it is unlikely to happen. The new grounding will also cause billions of dollars in charges.

FURTHER READING: Boeing profits nosedive by more than half on 737 Max crisis

FURTHER READING: Airbus sells 100 jets to US carrier Spirit Airlines

Like to share your thoughts and ideas about crypto and trading? You could join us as an external author. Email us on [email protected] to find out how you could become a Currency.com contributor.
Subscribe to Currency.com news
iMac Image
The most beautiful trading app
google play storeapple store
iPhone Image
iPhone Image