Boeing suppliers bracing for short-term halt in 737 MAX output

WASHINGTON/PARIS (Reuters) – Boeing suppliers, prospects and financiers braced on Monday for a doable freeze in Boeing 737 manufacturing for the primary time in additional than 20 years because the grounding of the best-selling MAX appears to be like set to final nicely into the New 12 months.

Two suppliers advised Reuters Boeing was prone to halt meeting of the jet in the meanwhile, although some suppliers may very well be requested to maintain producing to reduce disruption.

Boeing’s (BA.N) board was attributable to meet for a second day in Chicago on Monday to evaluate output choices, with an announcement anticipated later within the day.

An individual briefed on the matter stated on Sunday Boeing was contemplating whether or not to chop or halt manufacturing of its grounded 737 MAX after the Federal Aviation Administration stated final week it will not approve the airplane’s return to service earlier than 2020.

The corporate has already reduce manufacturing to 42 jets a month, from 52 a month earlier than regulators ordered a worldwide grounding in March in response to 2 deadly accidents.

The particular person briefed on the matter advised Reuters a short lived shutdown was extra probably than one other reduce, however it will probably take a couple of weeks earlier than manufacturing may very well be halted.

Boeing stated late on Sunday the corporate “will proceed to evaluate manufacturing choices primarily based on the timing and situations of return to service, which will likely be primarily based on regulatory approvals and should differ by jurisdiction.”

Reporting by David Shepardson, Tim Hepher. Enhancing by Jane Merriman

Our Requirements:The Thomson Reuters Belief Ideas.

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