WASHINGTON • Boeing is considering whether to cut or stop production of its grounded 737 Max after the US Federal Aviation Administration (FAA) said last week that it would not approve the plane's return to service before next year, a person briefed on the matter said on Sunday.
The largest US planemaker's board of directors held a regular two-day meeting in Chicago that started on Sunday and the firm was set to make an announcement on production plans late yesterday, said the person.
The Seattle Times reported on Sunday that the board is considering a proposal from top management to temporarily shut down production of the 737 Max.
The person briefed on the matter told Reuters a temporary shutdown is more likely than another production cut, but it would potentially take a few weeks before production could be stopped.
Boeing said in a statement on Sunday that the firm "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 said that if it did not receive approval to begin deliveries before the end of the year, it could be forced to further slow production or temporarily shut down the Max production line, a move that would have repercussions across its global supply chain.
Last Thursday, Boeing abandoned its goal of winning approval this month to unground the 737 Max after chief executive Dennis Muilenburg met FAA administrator Steve Dickson.
Mr Dickson last Wednesday said he would not clear the plane to fly before next year and disclosed that the agency had an ongoing probe into 737 production issues in Renton in Washington state. He said there are nearly a dozen milestones that must be completed before the Max returns to service.
Approval is not likely until at least February and could be delayed until March, US officials told Reuters last week.
Mr Dickson told Mr Muilenburg, according to an e-mail sent to lawmakers by the FAA, that "Boeing's focus should be on the quality and timeliness of data submittals for FAA review".
"He made clear FAA's certification requirements must be 100 per cent complete before return to service", the e-mail added.
Boeing had last month said it expected that the FAA would allow it to resume 737 Max deliveries this month.
American Airlines Group last Thursday said it was extending cancellations of 737 Max flights until April 6.
REUTERS
