Boeing to suspend 737 MAX production

Portland, Oregon - April 2019: Entrance to boeing paint facility where brand new planes are painted in airline liveries.

The world’s most profitable aircraft manufacturer has announced it will halt production of its 737 MAX aircraft rom January.

The jet has been grounded worldwide since March following two fatal plane crashes involving Lion Air and Ethiopian Airlines which killed a combined 346 people.

The decision by Boeing to pause production comes after the Federal Aviation Administration (FAA) determined its review of the aircraft series – the manufacturer’s best-selling – will continue into the new year.

“The decision to suspend 737 MAX production was based on a thoughtful assessment of a variety of factors,” Muilenburg said in a tweet.

“We are keeping our employees, customers and supply chain top of mind as we prioritise safely returning the MAX to service.”

Boeing said it does not plan to layoff or furlough employees at its Renton, Washington factory – where the 737 MAX is produced – during the pause in production.

The manufacturer added that it plans to have affected employees continue 737-related work or temporarily re-assign them to other teams in Puget Sound.

Boeing has been seeking approval for the return to service of the 737 MAX since late March, after its anti-stall software was embroiled in two fatal crashes. The manufacturer has not halted production on the jet in all that time and has continued selling it.

Warning signs have, however, been prevalent. Boeing president and CEO Dennis Muilenburg in July warned investors that a halt to production was possible, following an historic loss in its second-quarter results.

Throughout the grounding of the 737 MAX, Boeing has continued to build new airplanes, with approximately 400 in storage, and recently unveiled the largest member of the aircraft series, the MAX 10.

Currently, the MAX 10 has more than 550 orders and commitments from customers.

“We have previously stated that we would continually evaluate our production plans should the MAX grounding continue longer than we expected,” Boeing said in a statement.

“As a result of this ongoing evaluation, we have decided to prioritise the delivery of stored aircraft and temporarily suspend production on the 737 program beginning next month.”

The aircraft manufacturer will release financial information regarding the production suspension in connection with its fourth quarter 2019 earnings release in late January.

To read more of Travel Weekly‘s Boeing 737 MAX coverage, click here.

Latest News

  • Health & Wellness
  • Luxury

Trisara showcases sustainable dining via wellspring program

Phuket-based resort Trisara is transporting guests from resort to farm to table then back again courtesy of a new limited-time program, Wellspring. The package is a collaboration with Tri Vananda, a US$182 million (AU $270 million) wellness community in northern Phuket, conceived by Montara Hospitality Group, the owners of Trisara. In addition to entitling guests […]

  • Aviation

Emirates SkyCargo expands fleet with five Boeing 777 freighters

Emirates SkyCargo announced an investment of US$1 billion (AU$1.484b) to expand its fleet with an order of five new Boeing 777 freighters. The investment follows a strong performance in the first quarter of the 2024/25 financial year. Emirates SkyCargo expects the new freighters to increase its capacity by 30 per cent. The increase enables the […]

  • Events
  • Tour Operators

ITE HCMC 2024 focuses on sustainable tourism for creating a future

The 18th annual International Travel Expo Ho Chi Minh City (ITE HCMC) will take place from 5 to 7 September at the Saigon Exhibition and Convention Center. Under the theme “Responsible Travel, Creating Future”, the expo will highlight its dedication to promoting sustainable tourism practices and showcasing innovative tourism products and services to meet rigorous […]

  • Appointments

Seasoned pro Chris Waite goes out on his own in corporate affairs & communications

Seasoned tourism and hospitality industry corporate affairs and communications professional Chris Waite has unveiled his new consultancy. Drawing on his 25 years of experience across Australia, Europe, and Asia, Chris Waite Corporate Affairs & Communications is dedicated to helping businesses build and safeguard their most valuable asset: their reputation. Waite will focus on delivering results through […]

  • News

Travel becomes the leading retirement priority in latest Equip Super research

A staggering 71 per cent of Australians are prioritising spending their retirement savings on travel, according to a recent survey by leading superannuation fund, Equip Super. Health concerns were ranked as second as the most significant priority in retirement with 56 per cent and spending on hobbies and interests takes the third spot at 54 […]