Boeing may cut or halt 737 productions if a return to service delayed

Boeing may cut or halt 737 productions if a return to service delayed

Business

Boeing does not rule out reducing or temporarily halting production of the 737 MAX if the aircraft’s return to service forecasts are revised, the company’s chief executive Dennis Muilenburg said on Wednesday.

Boeing cut production of its top-selling passenger jet by 20% in April from 52 to 42 units, weeks after authorities around the world ordered the aircraft to be halted after two crashes in a few months.

Boeing estimates the aircraft’s return to service will begin “early in the fourth quarter.” Based on this forecast to keep jet production at 42 units per month, rising to 57 monthly by 2020, Muilenburg told analysts.

Gol is a customer of Boeing, which earlier this year agreed to buy the commercial aviation division of the also Brazilian Embraer.

The executive said Boeing would continue to evaluate the plans and added: “If our estimate of the return to service changes. we may need to consider further production reductions and other options, including temporary closure of MAX production.”