Boeing CEO warned that it could “suspend production” of the 737 MAX

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Boeing has cut its 737 MAX aircraft output from 52 to 42 since the aircraft was suspended from service worldwide in March after two catastrophic fall disasters.

On July 24, Boeing’s executive director (CEO), Dennis Muilenburg warned that Boeing could cut production for the 737 MAX or even “pause production” line. This aircraft if the flight ban is longer than expected.

Boeing has cut its 737 MAX aircraft output from 52 to 42 since the airline’s suspension in March last year after two Lion aviation disasters. Air (Indonesia) in October 2018 and Ethiopian AIrlines in March 2019 killed more than 300 people.

According to Mr. Muilenburg, the 737 MAX is expected to resume operation in the fourth quarter of 2019, but if the order to suspend the flight is longer than the time expected to resume this operation, the airline will need to review the cutting capacity. reduce the volume of this aircraft further or consider other options, including the suspension of production of this aircraft.

Boeing’s CEO made the warning in the context that the company had lost nearly $ 3 billion in the second quarter of 2019 due to efforts to overcome the impact of the 737 MAX series of aircraft being banned from operation. globally, the incident has caused its stock price to plummet.

In the second quarter (ending June 30), Boeing net loss of 2.94 billion USD, while the same period last year it saw a profit of 2.20 billion USD. This is the largest quarterly loss of the world’s largest aircraft manufacturer.

The results of Boeing’s failed ventures were mainly due to the $ 5 billion cost incurred last week, to address the 737 MAX flight crash caused by global flight after two accidents. catastrophic accident in 6 months in Indonesia and Ethiopia. The money was also used to compensate for airlines affected by Boeing’s suspension of 737 MAX aircraft deliveries after it reduced output of the narrow-body aircraft.

Meanwhile, Boeing’s revenue also dropped 35% to 15.75 billion USD, much lower than the forecast of 18.55 billion USD.

Boeing is currently under pressure from all 737 MAX aircraft around the world forced to stop flying due to safety concerns after two serious accidents, despite firm claims that the line Flying 737 MAX “is basically safe.” Boeing is committed to taking all necessary safeguards to regain credibility. 737 MAX’s suspension of operation forced Boeing to “freeze” the plan to transfer the aircraft, which is the company’s best-selling line today.

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