Boeing warns it may halt 737 Max aircraft production
The US-based aerospace company recorded its largest ever quarterly loss after announcing it may be forced to halt production of its 737 Max aircraft after grounding.
Boeing has warned that it may be forced to reduce, or shutdown production of its 737 Max if grounding of the aircraft continues.
Safety regulators worldwide have grounded Boeing’s 737 Max aircraft after finding issues with components found in its wing that put it at risk of premature failure.
‘As our efforts to support the 737 Max's safe return to service continue, we will continue to assess our production plans,’ Boeing Chairman, President and CEO Dennis Muilenburg told investors in a conference call.
‘Should our estimate of the anticipated return to service change, we might need to consider possible further rate reductions or other options, including a temporary shutdown of the Max production.’
Boeing records largest quarterly loss amid 737 Max grounding crisis continues
The continued grounding of its 737 Max aircraft has significantly hurt Boeing’s bottom line, with the company recording its worse ever quarterly performance in its second quarter (Q2).
The US-based aerospace company reported a $3.4 billion (£2.7 billion) loss in Q2 as a result of the ongoing crisis, compared with the $2.2 billion profit it made during the same period last year.
The newest iteration of Boeing’s twin-jet plane was grounded by regulators after the Lion Air accident in October last year and the Ethiopian Airlines crash in March killed 346 people.
Regulators blamed the crashes on Boeing’s anti-stall system known as MCAS, with the faulty component causing both aircrafts software to tilt its nose down aggressively, making it impossible for pilots to control the plane.
‘This is a defining moment for Boeing and we remain focused on our enduring values of safety, quality, and integrity in all that we do, as we work to safely return the 737 Max to service,’ Muilenburg sad.
‘During these challenging times, teams across our enterprise continue to perform at a high level while delivering on commitments and capturing new opportunities driven by strong, long-term fundamentals,’ he added.
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