Boeing Suspends 737 Max Production Beginning In January

Boeing Co BA announced Monday that it will suspend production of the belegeaured 737 Max jet in January.

The aircraft has been grounded worldwide in the wake of two deadly crashes: a Lion Air flight in Indonesia in October 2018 and an Ethiopian Airlines flight in March. Together, the crashes killed 346 people. 

Safely returning the 737 MAx to service is Boeing's "top priority," the company said in a statement. 

“We know that the process of approving the 737 MAX's return to service, and of determining appropriate training requirements, must be extraordinarily thorough and robust, to ensure that our regulators, customers, and the flying public have confidence in the 737 MAX updates,” according to Boeing. 

The FAA and global regulatory authorities will determine the timeline for the 737 Max's certification and return to service, according to the Chicago-based company.

Boeing has continued to build new airplanes despite the grounding, with approximately 400 airplanes in storage, but said it will suspend production at the beginning of January.

“We believe this decision is least disruptive to maintaining long-term production system and supply chain health. This decision is driven by a number of factors, including the extension of certification into 2020, the uncertainty about the timing and conditions of return to service and global training approvals, and the importance of ensuring that we can prioritize the delivery of stored aircraft."

No layoffs or furloughs are expected at this time, Boeing said. 

The stock was down 0.83% at $324.30 in Monday's after-hours session after dropping 4.27% in the regular trading session.

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Photo by Oleg V. Belyakov via Wikimedia.