Boeing plans 737 MAX production restart by May – Reuters

Boeing CEO said that the manufacturer is “very close to the finish line” for the safely return of the grounded 737 Max.

Boeing 737 Max
Boeing to resume 737 Max production Photo: Boeing

Boeing is planning to restart the production of its 737 Max by May, as reported by Reuters on Tuesday.

However, the plan was set to restart the production of the grounded aircraft in April, though it has been postponed to May due to uncertainty surrounding the wide-spread coronavirus.

Some source reported that Boeing has asked some suppliers to be ready to ship Max parts in April, while another one said that the plan has been delayed until May, due to COVID-19 outbreak.

What the Boeing CFO has to say?

Boeing Chief Financial Officer, Greg Smith told Reuters that, “it’ll be a very slow, methodical, systematic approach to warning the line up, and getting crews back in place.”

Boeing 737 Max
Airlines are bearing loss due to 737 Max grounding Photo: Tim Jue

“Priority number 1 is getting customers’ fleets back up,” Smith added. “We don’t want to add to inventory.”

However, due to going coronavirus pandemic, airlines are in no hurry for the aircraft’s return. Many of them have been trying to delay the arrival of their new aircraft.

Airlines around the globe have been reducing both international and domestic flights due to decline in demand for air travel due to seal off of borders around the world due to the pandemic.

Is Boeing operating all of its factories?

Boeing said on Monday that it would halt production in its Washington state assembly lines from Wednesday, to reduce the spread of coronavirus.

One of the corona affected Boeing employees died on Sunday Photo: Boeing

One of its employee, who was working for the planemaker since last 27 years at Everett factory died last Sunday.

He was working on Boeing 787 Dreamliner assembly line as an Inspector to the flight line at Everett factory as reported by his co-workers.

Last week, Boeing said that it needs a minimum of $60 billion in government aid in order to help the United States aerospace industry’s 2.5 million jobs survival.

What the CEO has to say?

“We do have liquidity. We have $15 billion in the bank and we are paying our suppliers, and with every dollar we acquire, 70 cents goes directly ti the industry supply chain that underpins us,” said Boeing CEO David Calhoun.

Boeing 737 Max
Over 400 Boeing 737 Max are stored in Boeing storage Photo: Getty

“But we need to know that credit markets are open, not only to us, but to the entire supply chain,” he added.

Boeing also stated that it relies on over 17,000 suppliers from around the world and holds the position of the largest U.S. exporter.

Boeing 737 Max has been grounded since March last year, after two deadly crashes killing a total of 346 people on board. 

Boeing suspended the production of its 737 Max back in January 2020, after considering its financial state. Over 400 newly built 737 Max are currently in storage.

Boeing has halted production in Washington state Photo: Boeing

The Max’s grounding costs has increased by $2.6 billion over the last quarter totaling just over $18 billion.

Today, its share price surged higher after the manufacturer confirmed that it will stick to a mid-2020 return into service for the 737 Max.

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