Boeing to halt production of 737 MAX
NEW DELHI: Boeing plans to suspended production of its 737 MAX starting January amid uncertainty about the timing and conditions of the grounded aircrafts’ return to service, the company said.
“As we have previously said, the FAA (US Federal Aviation Administration) and global regulatory authorities determine the timeline for certification and return to service,” Boeing said on Monday. “It is our duty to ensure that every requirement is fulfilled, and every question from our regulators answered.”
The company said it has around 400 planes in storage and would prioritize their delivery.
“We will continue to assess our progress towards return to service milestones and make determinations about resuming production and deliveries accordingly,” the aircraft maker said, adding that financial information regarding the production suspension will be provided with the fourth quarter earnings that will be issued in late January.
In India, Spicejet ordered as many as 205 of these planes in 2017, of which 13 have been delivered. The planes are, however, grounded due to the ongoing US FAA safety review, following two deadly crashes in Indonesia and Ethiopia that killed 346 people. Spicejet is the only major Indian airline with the 737 MAX in its fleet.
Boeing’s decision on the 737 MAX is expected to pose further problems not only for Spicejet, but also for other airlines worldwide which have lost huge sums due to cancelled flights and inability to use the fuel-efficient planes.
However, Spicejet said that Boeing’s move does not impact its current operations.
“We are presently working with Boeing Company on the return to service and is in accordance with the guidance provided by the Boeing Company,” a Spicejet spokesperson said.