Boeing cuts 737 MAX output in wake of two deadly crashes

Boeing cuts 737 MAX output in wake of two deadly crashes

"At a production rate of 42 airplanes per month, the 737 program and related production teams will maintain their current employment levels while we continue to invest in the broader health and quality of our production system and supply chain", Boeing continued.

It comes after the 737 Max was involved in two separate accidents within the last six months.

In a statement, Muilenburg said the reduction was created to keep a healthy production system and maintain current employment - in effect, slowing down production now to avoid a deeper cut later, if fixing the plane takes longer than expected.

As a result, the plane has been grounded and there has been a halt in deliveries on the model, meaning a reduced need for production.

Boeing had been planning to speed up production in June to 57 a month.

A company spokesperson called it a "relatively minor issue" and said a fix was already in the works.

Boeing has said it is slowing production of the 737 MAX so it can focus its attention on fixing the flight-control software that has been implicated in two deadly crashes.

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Ethiopian Airlines, which has a pending order for 25 737-MAX aircraft, is reported to be reconsidering the deal.

Analysts say the absence of deliveries will eat into Boeing's cash flow as the company gets most of the cost of a plane upon delivery.

Airlines that operate the Max will be squeezed the longer the planes are grounded, particularly if the interruption extends into the peak summer travel season.

Senate Democratic Leader Schumer said Sunday the Boeing should be suspended by the Aviation Rulemaking Advisory Committee, which makes recommendations on airline business regulations.

According to WSJ reports on March 29, investigators into Ethiopian plane crash, Boeing's 737 MAX8, reached a preliminary conclusion over the crash, saying an anti-stall system has been activated before the aircraft hit the ground. Pilots of each plane struggled in vain to regain control over the automated system.

Boeing has been facing financial troubles after its most popular aircraft series was grounded. Other airliners like VietJet Aviation JSC, Kenya Airways Plc, Utair Aviation are said to be proceeding cautiously over future and ongoing purchases of the 737 MAX. Boeing faces a growing number of lawsuits filed by families of the victims.

Congress is looking at the connection between Boeing and the FAA after two recent fatal crashes.

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