In a widely-anticipated move, Boeing has announced that it will stop work next month on building more 737 MAX planes until the ban on their flying is lifted. Boeing had consistently said it expected approval this year, but officials have made clear there is more work to be done before safety regulators say yes.
The company had hoped to keep production steady, although at less than top speed, in order to be able to make deliveries quickly and get paid once the plane is recertified. However, with the extended delay, it is simply running out of space to store completed planes. And, a number of airlines have indicated they may not want to take their planes until the existing fleet has been back in the air a while.
The entire situation is a major financial issue for Boeing; it is paying out cash to a number of airlines to compensate for losses they have suffered through flight cancellations or the need to lease or maintain other planes. However, Boeing is saying that at least for now it will not lay off any of the 12,000 workers at the company’s 737 plant in Renton, Washington.
