Boeing to cut 737 jet production by upto 19% – a first since 9/11 attacks
Boeing Co. is cutting production of its 737 jetliner for the first time since the Sept. 11 attacks as the planemaker works to limit financial damage from the global grounding of its newest and best-selling aircraft model.
By slashing output 19 percent — to 42 airplanes a month by mid-April — Boeing will be able to reduce its spending on the 737 and preserve cash. As work slows in a Boeing factory south of Seattle, two key suppliers, CFM International and Spirit AeroSystems Holdings Inc., indicated they would continue full-tilt at the current record pace.
Boeing Chief Executive Officer Dennis Muilenburg outlined the plan Friday as the company ramps up efforts to restore public confidence in the 737 Max and the planemaker’s commitment to safety after two of the aircraft crashed within five months. Boeing is facing criminal and Congressional probes stemming from the disasters.
