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The
largest U.S. planemaker's board of directors is holding a
regular two-day meeting in Chicago starting Sunday and the
company could make an announcement on production plans as soon
as late Monday, the person said.
The Seattle Times reported Sunday the board is considering a
proposal from top management to temporarily shut down 737
production. 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 halted.
Boeing said in a statement Sunday the company "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 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.
The best-selling Boeing plane has been grounded since March
after two fatal crashes in Indonesia and Ethiopia that killed
346 people.
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. Dickson
said on Wednesday he would not clear the plane to fly before
2020 and disclosed the agency has an ongoing investigation into
737 production issues in Renton, Washington.
Dickson said Wednesday 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, U.S. officials told Reuters last week.
Dickson told Muilenburg, according to an email 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 that
FAA’s certification requirements must be 100% complete before
return to service."
Boeing had said last month it expected the FAA would allow it to
resume 737 MAX deliveries in December.
American Airlines Group Inc said Thursday it was extending
cancellations of 737 MAX flights through April 6.
The FAA told congressional staff in an email last week Dickson
is "concerned that Boeing continues to pursue a
return-to-service schedule that is not realistic... More
concerning, the administrator wants to directly address the
perception that some of Boeing’s public statements have been
designed to force FAA into taking quicker action.”
(Reporting by David Shepardson; Editing by Chris Reese)
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