Boeing to cut 737 production by 19% for first time since 9/11

New Delhi: In the aftermath of the Boeing 737 crash, Boeing has decided to cut down the production of 737 Max 8 planes by 19 percent for the first time since the 9/11 attacks happened. This is being done to limit the financial damage accrued from the global grounding of its new and bestselling aircraft model. Boeing is now planning to reduce the production to 42 aeroplanes a month by mid of April.

This will allow the company to cut down it’s spending on 737 and preserve cash.

Boeing asserts its commitment to safety

The plan was made public by Boeing Chief Executive Officer Dennis Muilenburg on Friday as the company accelerates efforts to restore public confidence in 737 Max and the aircraft-maker’s commitment to safety. Two of their 737 Max 8 planes crashed in the last five months, leading to the grounding of the model by countries across the world. Boeing now faces criminal and Congressional probes because of the crashes. In order to allay fears, the company’s board has appointed a committee to review the design and development of its aircraft.

“Safety is our responsibility, and we own it,” said Muilenburg in a statement Friday after the close of regular trading. “When the Max returns to the skies, we’ve promised our airline customers and their passengers and crews that it will be as safe as any airplane ever to fly,” he added.

Planemaker likely to face losses

Despite slowing down production, Boeing is likely to face quarterly losses totalling about $3.6 billion, said George Ferguson, an analyst with Bloomberg Intelligence. As the production of 737 continues, Boeing is letting go of payments from customers who are not able to accept deliveries because of the grounding.

However, Muilenburg has assured that the company will work with customers and suppliers to blunt the financial impact of the slowdown and does not plan on laying off employees.