Boeing Considers Cutting Back on 737 Max Production

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Boeing could announce Monday whether to reduce or suspend production of the grounded 737 MAX aircraft, according to The Wall Street Journal. Asia, with several financially strained low-priced carriers, could even see an airline going out of business because of costs related to the Max, Shukor said.

Boeing has continued to roll 737 MAX's off the production line despite the worldwide grounding in March.

The company released a statement after markets closed on Monday, saying it will prioritize delivery of the approximately 400 aircraft it now has in storage and suspend production beginning in January. Of the 80% indicating they'd hold off, 60% signaled they'd have to wait at least six months to fly on the plane after its clearance by regulators.

SpiceJet did not respond to emailed queries on the expected impact of Boeing's reported curtailment or suspension of production of the 737 Max aircraft. But the company has not been able to deliver the planes.

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Boeing will probably halt 737 MAX production in one or two weeks as the U.S. Federal Aviation Administration (FAA) said last week it would not approve resumed flights of the 737 MAX airplanes until next year.

Wreckage is piled at the crash scene of an Ethiopian Airlines flight involving a Boeing 737 Max 8. "If something goes down at Boeing's end, it would be a negative for SpiceJet". In April, the aircraft manufacturer cut production on the fleet by a fifth after canceling plans to increase output over the summer.

On Thursday, Boeing abandoned its goal of winning approval this month to unground the 737 MAX after Chief Executive Dennis Muilenburg met with FAA Administrator Steve Dickson. If the delay extends beyond 2020, then the financial estimates for SpiceJet will likely change, he said.

While many investors remained optimistic about the return of the 737, Dickson's comments last week quickly suppressed hope that the jet would come back early.