CHICAGO • Boeing has decided to suspend production of its best-selling B737-Max model from next month, the plane maker's biggest assembly-line halt in more than 20 years, as repercussions from two deadly crashes drag into next year.
The US manufacturer said on Monday it would prioritise the delivery of the 400 737 Max jets it had made since the model was grounded globally rather than feeding more airplanes into production.
Global airlines also have more than 370 of the planes that were delivered between the 737 Max's May 2017 introduction and the March grounding this year, and these are now parked at airports and kept in desert storage around the world.
How will the 737 Max production freeze affect airlines?
The immediate impact is likely to be muted because once the US Federal Aviation Administration (FAA) approves the 737 Max to resume flying, airlines' first priority is to prepare the 737 Max jets already in their fleets to return to service.
Then they will look to take delivery of the 400 planes that have been produced since the grounding.
Analysts estimate Boeing has the ability to deliver a maximum of 70 of the planes to customers per month, meaning getting through that backlog would take nearly six months, even if it kept the pause on production for that entire period.
FAA approval to resume flying is not likely until at least February and could be delayed until March, US officials have told Reuters.
How long will it take airlines to return the 737 Max to service?
Airlines will have to install Boeing's new software, run a series of maintenance checks on their idled jets and implement the recommended pilot training, with the latter likely to vary from country to country.
US carriers have said the process will take at least a month following FAA approval.
The return could also depend on regulators outside an airline's home jurisdiction. Singapore Airlines has said that even if Singapore approves the return of the 737 Max, it will need permission from the authorities in Indonesia and China for its planes to resume their normal routes.
Will the return of grounded planes lead to over-capacity?
The impact will vary in different regions. Analysts, however, have expressed concern about the impact of any slowdown in US consumer spending.
In Europe and Asia, travel demand has been more muted in recent months as economic growth slows, leading to a risk of heightened competition and declining fares once the 737 Max returns.
REUTERS
