Boeing will cut production of its troubled 737 Max airliner which remains grounded worldwide after two deadly crashes
Boeing Co said on Friday it plans to cut its monthly 737 aircraft production by nearly 20 percent in the wake of two deadly crashes, signaling it does not expect aviation authorities to allow the plane back in the air anytime soon.
US and airline officials said they now believe the plane could be grounded for at least two months, but an even longer grounding is a serious possibility. The company's board will establish a committee to review how the company designs and develops airplanes, Muilenburg said. The group will "recommend improvements to our policies and procedures" for its 737 MAX and other airplane programs.Shares in Boeing Co fell around two percent after the market closed on Friday. While the number of 737 MAX planes grounded is just over 370, nearly 5,000 more are on order.
Having to hold planes in storage without delivering them does, however, consume extra cash through increased inventory.
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