Boeing will suspend production of its embattled 737 Max airplanes beginning in January.
The Chicago-based aircraft maker announced Monday it had about 400 airplanes in storage while the company awaits regulatory approval for the planes to return to the skies.
“We have decided to prioritize the delivery of stored aircraft and temporarily suspend production on the 737 program,” the company said in a statement after markets closed.
“We believe this decision is least disruptive to maintaining long-term production system and supply chain health.”
The company said it expected affected employees will continue work related to the 737 airplanes or be temporarily assigned to other teams.
The 737 Max airplane was grounded in March after deadly crashes in Indonesia and Ethiopia that killed a total of 346 people.
Last week, a senior FAA official told legislators that Boeing was pushing for an unrealistically quick return of the Max and that there is a perception the company is pressuring the regulator.
In an email Thursday to key congressional committees, Philip Newman, FAA assistant administrator for government and industry affairs, said Administrator Stephen Dickson “is concerned that Boeing continues to pursue a return-to-service schedule that is not realistic” because of various delays. Newman wrote that Dickson is clear that FAA and Boeing “must take the time to get this process right.”
The grounding of the Max is costing Boeing and airlines billions. Boeing has been eager to signal the plane could soon fly again. Recently, the company said it expected the FAA to permit shipments of new Max jets in December and approval of a pilot-training program for airlines in January.
Boeing is waiting for the FAA and other regulators to sign off on changes to flight control software that was a major factor in the two crashes.
Boeing said in October that production cuts may be needed if a decision on letting the plane fly again is delayed into next year.
