Boeing Says 737 MAX grounding could force it to cease production

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Boeing Says 737 MAX grounding could force it to cease production

In the face of a substantial extent of regulatory requirements alongside a much-longer than anticipated delay in returning Boeing Co.’s best-selling 737 MAX into service might force the world’s largest low-cost aircraft carrier maker either to slash or to half production momentarily, a letter from the Chicago, Illinois-based aerospace company seen by a press agency reporter had unveiled on Thursday, the 5th of December 2019.

Nonetheless, the Chicago-based aircraft carrier manufacturer had also added in its letter that the American multinational aerospace and defence company was not expecting any kind of material impact on its earnings or revenues from a-mass cancellation of its 737 Max orders after a March 10th crash of Ethiopian airliner over potential glitch on 737 Max’s autopilot software, which in effect had spurred up regulatory scrutiny and led to a mass-grounding of Boeing Co.’s 737 Max across the globe.

Aside from that, in the letter dated October 18th that was sent to the US Securities and Exchange Commission (SEC) had also revealed that the airliner was focusing on to its back-up plan to shift planned customer delivery dates in a bid to allay potential impacts.

However, the American multinational aircraft carrier said last month that the US FAA (Federal Aviation Authority) was expected to allow its Boeing 737 Max back in to service by mid-December, though the planemaker had also cited back then that it was not expecting the US FAA to complete the review of a revamped Max 737 software until January 2020.