Boeing has decided to suspend production of the 737 MAX from January 2020. Faced with a longer than expected re-certification, Boeing had no other choice.
“The uncertainty about the timing and conditions of the Boeing 737 MAX return to service and global training approvals” have led Boeing to suspend the production of the 737 MAX from January 2020. Following the grounding decided by several civil aviation authorities around the world in March, the manufacturer had decided to go from a rate of 52 to 42 planes per month from April. In its forecast note of last July, the firm Archery Strategy Consulting had already stressed that such a decision until the end of 2019 “would result in a stock of 430 Boeing 737 MAXs which would be difficult to manage for Boeing” and in the event of prolongation of the grounding on the year 2020, “the stock would reach 682 planes at the end of the second quarter 2020, then 808 at the end of the third quarter 2020”. An unmanageable situation. Hence Boeing’s decision to suspend production which according to the Seattle-based manufacturer would be “least disruptive to maintaining long-term production system and supply chain health”. Waiting for the FAA and other civil aviation authorities to approve re-certification of the 737 MAX, Boeing will “prioritize the delivery of stored aircraft”.