Boeing Could Reportedly Stop Or Reduce Production Of Grounded 737 MAX

Boeing Co BA is considering halting or cutting back production of its grounded 737 MAX aircraft after the Federal Aviation Administration said it would not approve its return to service before 2020, The Wall Street Journal reported Sunday, citing people familiar with the matter. 

The jet manufacturer could make an announcement as soon as Monday, the newspaper said. 

The 737 MAX jets have been grounded since March after two fatal crashes occurred in the space of five months.

Further cutting the production of the 737 MAX, following an earlier reduction in April, would also inflate Boeing’s cost, trigger charges and could spur job cuts across the global aerospace industry, WSJ said. 

On Dec.12, Southwest Airlines Co. LUV reached a confidential agreement with Boeing to compensate Southwest for projected financial damages related to the grounding of the airline's Boeing 737 MAX aircraft.  

Boeing shares were falling more than 4% to $328.78 in Monday's premarket session. The stock has a 52-week high of $446.01 and a 52-week low of $292.47.

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