The Business Times

Boeing says production of embattled 737 MAX has resumed

Published Wed, May 27, 2020 · 10:21 PM

[NEW YORK] Boeing has resumed production of the 737 MAX at a "low" rate following two deadly crashes that led to the aircraft's global grounding by regulators, the company said on Wednesday.

The jet hasn't flown commercially since March 2019 and is still a number of key steps away from being cleared for service by the US Federal Aviation Administration and other regulators.

Boeing said work on the MAX had resumed at the company's Renton, Washington factory as it implements initiatives to enhance workplace safety and product quality.

"We've been on a continuous journey to evolve our production system and make it even stronger," said Walt Odisho, vice president and general manager of the 737 programme.

The aerospace giant had shut production in January amid uncertainty over when regulators would clear the jet to fly again.

Even before the hit from the coronavirus, the MAX crisis had cost Boeing billions of dollars in compensation for airlines and production expenses, including the cost to store more than 400 planes that could not be delivered to customers.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

VIEW ALL

Since that time, Boeing's troubles have deepened as its airline customers have been thrust into a fight for survival due to plunging travel demand from coronavirus shutdowns.

Earlier Tuesday, Boeing released details on a downsizing plan to cut total headcount by 10 per cent, or roughly 16,000 employees in all.

The company said it approved 5,520 US employees for voluntary layoffs and was notifying another 6,770 staff members that they would be involuntarily let go.

AFP

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to  t.me/BizTimes

Transport & Logistics

SUPPORT SOUTH-EAST ASIA'S LEADING FINANCIAL DAILY

Get the latest coverage and full access to all BT premium content.

SUBSCRIBE NOW

Browse corporate subscription here