The Monday, December 16, 2019, announcement at Boeing’s Chicago headquarters of the company’s plan to halt 737 Max production in January 2020 was not much of a surprise to anyone. Despite the troubled airplane’s grounding in March 2019, America’s top manufacturing exporter continued building 42 airframes each month, creating a backlog of more than 400 finished airplanes waiting to be delivered.
Boeing’s 737 Max Production Line to Grind to a Halt
Key Takeaways:
- Boeing announced a halt to 737 Max production in January 2020, due to a backlog of over 400 finished but undelivered aircraft following its grounding in March 2019.
- The company faces substantial financial burdens, including costs for parts, preparing grounded planes, halting/restarting production, and significant reparation payments to airlines.
- The FAA is maintaining a strict and open-ended re-certification process for the Max, contrary to Boeing's earlier expectations, which has allowed rival Airbus to surpass it in commercial aircraft deliveries.
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