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| Boeing’s 737 Max Decision: Shut Down Production? | Boeing’s 737 Max Decision: Shut Down Production? |
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| Boeing is moving closer to a decision to further reduce production of the 737 Max or bring the factory to a temporary halt as it continues to grapple with fallout from two deadly crashes that have left the jet grounded for nine months. | Boeing is moving closer to a decision to further reduce production of the 737 Max or bring the factory to a temporary halt as it continues to grapple with fallout from two deadly crashes that have left the jet grounded for nine months. |
| A shutdown of the Max line would send shocks through the American economy, affecting suppliers around the country and plunging the company deeper into crisis. | A shutdown of the Max line would send shocks through the American economy, affecting suppliers around the country and plunging the company deeper into crisis. |
| Boeing is America’s largest manufacturing exporter and the largest component of the Dow Jones industrial average. The 737 Max is Boeing’s most important product, representing tens of billions of dollars in annual sales. | |
| Yet with the company still unable to win approval from global regulators to let the plane fly again, executives and board members are approaching what will be one of the most consequential decisions in the manufacturer’s more than 100-year history. | Yet with the company still unable to win approval from global regulators to let the plane fly again, executives and board members are approaching what will be one of the most consequential decisions in the manufacturer’s more than 100-year history. |
| Boeing’s board was in Chicago on Monday for a scheduled meeting, and is consulting with senior leaders at the company before they make a final decision, according to four people with knowledge of the deliberations. An announcement is likely to be made Monday afternoon or Tuesday morning, the people said, asking not to be identified because the discussions were still private. | Boeing’s board was in Chicago on Monday for a scheduled meeting, and is consulting with senior leaders at the company before they make a final decision, according to four people with knowledge of the deliberations. An announcement is likely to be made Monday afternoon or Tuesday morning, the people said, asking not to be identified because the discussions were still private. |
| Though no decision had been made as of Monday morning, one person familiar with the matter said the most likely scenario was that Boeing would pause production of the Max for an initial 60-day period. | Though no decision had been made as of Monday morning, one person familiar with the matter said the most likely scenario was that Boeing would pause production of the Max for an initial 60-day period. |
| Should Boeing follow that plan, the company intends to redeploy the thousands of workers building the Max to other projects, avoiding layoffs or furloughs for now, another person familiar with the matter said. | Should Boeing follow that plan, the company intends to redeploy the thousands of workers building the Max to other projects, avoiding layoffs or furloughs for now, another person familiar with the matter said. |
| Boeing is also trying to figure out how it would handle the disruption to suppliers. Though it may provide support to some, others are likely to endure significant financial pain if Boeing stops accepting parts for a period of months. Shares of Spirit AeroSystems, which makes the fuselage of the Max, were down about 4 percent in early trading on Monday. Boeing’s shares were down more than 3 percent. | Boeing is also trying to figure out how it would handle the disruption to suppliers. Though it may provide support to some, others are likely to endure significant financial pain if Boeing stops accepting parts for a period of months. Shares of Spirit AeroSystems, which makes the fuselage of the Max, were down about 4 percent in early trading on Monday. Boeing’s shares were down more than 3 percent. |
| There is still a chance that Boeing could further reduce the rate of production, instead of shutting down the factory. In April, the company said it would reduce the number of 737 planes it produced each month to 42 from 52. A further reduction would keep the line operational, avoiding the complex process of restarting it months from now. | There is still a chance that Boeing could further reduce the rate of production, instead of shutting down the factory. In April, the company said it would reduce the number of 737 planes it produced each month to 42 from 52. A further reduction would keep the line operational, avoiding the complex process of restarting it months from now. |
| If Boeing does shut down the Max factory, which is in Renton, Wash., any decision as to when production would resume would be based on the decision by regulators to let the Max return to service. | If Boeing does shut down the Max factory, which is in Renton, Wash., any decision as to when production would resume would be based on the decision by regulators to let the Max return to service. |
| “We continue to work closely with the F.A.A. and global regulators towards certification and the safe return to service of the Max,” Gordon Johndroe, a Boeing spokesman, said in a statement. “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.” | “We continue to work closely with the F.A.A. and global regulators towards certification and the safe return to service of the Max,” Gordon Johndroe, a Boeing spokesman, said in a statement. “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.” |
| Boeing has repeatedly delayed the projected date of a return to service for the Max. Dennis A. Muilenburg, Boeing’s chief executive, said in October he expected the planes to be approved this year. But last week, Stephen Dickson, the administrator of the Federal Aviation Administration, said the Max would not fly until 2020. | Boeing has repeatedly delayed the projected date of a return to service for the Max. Dennis A. Muilenburg, Boeing’s chief executive, said in October he expected the planes to be approved this year. But last week, Stephen Dickson, the administrator of the Federal Aviation Administration, said the Max would not fly until 2020. |
| Shutting down the line rather than further reducing the rate of production could help the company. Boeing has built nearly 400 Max jets that it has not yet delivered. The process of delivering all those jets will take at least a year, and reducing the backlog would simplify that process. It would also reduce the time the newly built planes sit idle. | Shutting down the line rather than further reducing the rate of production could help the company. Boeing has built nearly 400 Max jets that it has not yet delivered. The process of delivering all those jets will take at least a year, and reducing the backlog would simplify that process. It would also reduce the time the newly built planes sit idle. |
| This is a developing story and will be updated. | This is a developing story and will be updated. |