Plus   Neg

Boeing To Cut 737 Max Production By 20% After Pair Of Crashes

Boeing Co (BA) plans to cut 737 MAX production by 20 percent in the wake of two deadly crashes, CEO Dennis Muilenburg said. The production will be cut to 42 airplanes per month from 52 Starting mid-April, the company said on Friday, but Boeing said that it does not plan any layoffs due to the reduction in output.

Muilenburg said the company now knows that a chain of events caused a Lion Air crash in Indonesia last October and the Ethiopia disaster, with erroneous activation of so-called MCAS anti-stall software 'a common link' between the two.

Boeing said it continues to make progress on a 737 MAX software update to prevent 'accidents like these from ever happening again,' he said.

In after-hours trading, Boeing's shares were down 2.26% to $383.09

"We're adjusting the 737 production system temporarily to accommodate the pause in MAX deliveries, allowing us to prioritize additional resources to focus on software certification and returning the MAX to flight," Boeing Chairman and CEO Dennis Muilenburg said in a statement.

Boeing will also establish a committee on its board of directors to review how it develops and builds planes, Muilenburg said.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Google announced a batch of renewable energy deals totaling 1.6 GW through 18 acquisitions spread across three continents. The deals are intended to "spur the construction of more than $2 billion in new energy infrastructure," the company said. Google said the deals will increase its worldwide portfolio... Beyond Meat's main competitor Impossible Foods will launch its grocery store in California on Friday. Beyond Meat Inc. (BYND), the meatless burger and sausage maker, announced the appointment of Sanjay Shah as Chief Operating Officer. Shah will assume the responsibility for Beyond Meat's global operations and production, effective September 18.
Follow RTT