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Boeing freezes 737 MAX release
Boeing announced it would halt production of its best-selling 737 MAX jet in January. For the company, this will be the longest hiatus on an assembly line in more than 20 years..
It is known that no one from about 12 thousand employees will lose their jobs due to the freeze of production, although this step may have implications for the entire global supply chain of the company and the US economy..
The decision was made at a board meeting after the Federal Aviation Administration (FAA) refused to approve the return of the aforementioned model to service until 2020..
The 737 MAX has not operated commercial flights since March this year after two accidents in Indonesia and Ethiopia, which killed 346 people. It cost an aircraft manufacturer more than $ 9 billion..
The decision to discontinue production will not affect the airlines as they have long sought replacements or are using other versions of the aircraft..
However, the pause will exacerbate the crisis that has created problems with Boeing’s fastest-selling aircraft worldwide. Clients are pushing for compensation, and relationship with the FAA is under strain.
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The situation also threatens to hit the US economy. Rep. Rick Larsen called Boeing’s decision «a blow to their employees and the region’s economy».
«The only salvation is that management has promised not to fire anyone. I am willing to work with Boeing employees and I can guarantee that they can count on our help in case of prolonged production freeze», – he stated.
So far, Boeing has continued to produce 42 737 MAX aircraft per month and purchase parts from suppliers for up to 52 units per month, even though supplies are frozen until regulators allow the aircraft to take off again..
Boeing did not say how long the pause could last, stressing that it depends on the FAA. Previous attempts to predict when the 737 MAX might return to service have prompted strong backlash from US regulator.
The FAA said it would not comment on what it described as «Boeing business solution», but will continue to work with global regulators to review proposed changes to the 737 MAX.