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WSJ: Boeing May Pause Production of Grounded 737 MAX

a boeing 737 max prepares to take off for a test flight
A Boeing 737 MAX prepares to take off for a test flight on Dec. 11, 2019. (Ted S. Warren/AP)

By    |   Sunday, 15 December 2019 08:57 PM EST

Boeing is considering additional cutbacks to production of its controversial 737 MAX jet, according to sources who spoke with The Wall Street Journal.

The 737 was grounded in March following two deadly crashes that killed 346 people. The planes won't be cleared for flight until 2020 at the earliest, said Steve Dickson, chief of the Federal Aviation Administration.

"Like I said, there are a number of processes, milestones, that have to be completed," Dickson told CNBC's Phil Lebeau on "Squawk Box" last week. "If you just do the math, it's going to extend into 2020."

The return date of the plane has repeatedly changed, though Boeing has publicly said it expects the FAA to begin the process of ungrounding the jet this year.

Sources tell the Journal the company is now considering suspending or cutting back production of the jet, as board members of the company see pausing production as the most viable decision.

Boeing could disclose a decision on Monday.

The move would result in layoffs, though Boeing intends to do what it can to have "as little impact on employees as possible," according to a source who spoke with The Seattle Times.

A Boeing spokesman told the Journal that the company continues to work closely with the FAA and global regulators ahead of the jet's return, adding: "We will continue to assess production decisions based on the timing and conditions of return to service, which will be based on regulatory approvals and may vary by jurisdiction."

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Boeing is considering additional cutbacks to production of its controversial 737 MAX jet, according to sources who spoke with The Wall Street Journal.
boeing, 737 max
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2019-57-15
Sunday, 15 December 2019 08:57 PM
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