TIA WEB DESK
US aircraft manufacturer Boeing has announced that it will cut production of its 737 passenger planes in the wake of two recent crashes: one in Indonesia and the other in Ethiopia. Both crashes involved 737 MAX-8 models.
Chief Executive Officer Dennis Muilenburg said in a statement on Friday that monthly production will be reduced from 52 to 42 starting in mid-April.
He said the temporary reduction is to accommodate the pause in deliveries, adding that the company will focus on software updates and certification for returning the aircraft back into service.
He added that the reduction will not result in layoffs.
A preliminary report by Ethiopian authorities said the crash in their country last month indicates an automatic system lowered the nose of the aircraft after the pilot tried to pull it up, just as it did in the Indonesia crash.
They urged Boeing to review its aircraft control systems.
Boeing had 5,012 orders of the 737 MAX at the end of February, and more than 4,600 backorders. It has delivered 376 of the planes.
Observers are waiting to see how the production cut will affect sales, of which the company had earlier forecasted a record high this year.