Deliveries of Boeing’s best-selling aircraft were frozen after a global grounding of the narrowbody model following the crash of an Ethiopian Airlines jet on March 10, killing all 157 people on-board.says it plans to cut its monthly 737 aircraft production by nearly 20 percent in the wake of two deadly crashes, signalling it does not expect aviation authorities to allow the plane back in the air anytime soon.
US and airline officials said they now believe the plane could be grounded for at least two months, but an even longer grounding is a serious possibility. Boeing said it would not reduce jobs at the new production rate and will work to minimize the financial impact. Boeing faces logistical issues in finding places to park the growing number of planes as well as being responsible for all their maintenance costs since it has been unable to deliver the jets to customers, two people briefed on the situation said.
Boeing supplier Spirit Aerosystems Holdings said it will continue to make 52 737 MAX shipsets – the complete set of parts for each aircraft – per month, storing extras at its facilities. Its shares fell 3.5%.
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