Boeing to Reportedly Suspend or Shut Down 737 MAX Production

Reports have surfaced saying Boeing officials are considering temporarily suspending or shutting down production of the 737 MAX aircraft as it remains grounded.

According to Reuters.com, members of the airplane manufacturer’s board of directors met Monday to discuss the issues and future plans, causing shares of Boeing and its suppliers to drop in price on the stock market.

A decision by Boeing to halt MAX production would likely result in significant additional charges for the manufacturer and its suppliers, according to analysts. The company has already cut its production to 42 planes per month.

A source told Reuters that suppliers had asked Boeing to keep producing planes and parts to minimize disruption, but the feeling behind the scenes is the manufacturer will stop producing MAX planes, at least temporarily.

Last month, the Federal Aviation Administration responded to comments from Boeing officials that the grounded 737 MAX fleet would return to service as early as January 2020 by saying the planes would only return to service when all testing was completed.

“The FAA will take all the time it needs to ensure the aircraft is safe,” agency officials said.

Governments around the world have grounded the MAX planes since March after two deadly crashes that killed a total of 346 people were attributed to issues with the 737 jets.

Boeing has faced several struggles in recent months. First, American Airlines announced last week it was canceling flights using the MAX aircraft through April 7, 2020.

In addition, Southwest Airlines received $125 million in compensation from Boeing that the carrier plans to share with its employees.