Boeing Announces 737 Max Production Stoppage Without Layoffs

RENTON, WA — Boeing will suspend all 737 Max production in January while avoiding all layoffs and furloughs to employees, the company announced Monday. In a news release, Boeing acknowledged nearly 400 airplanes are currently in storage amid a global grounding of the 737 Max after two deadly crashes in Indonesia and Ethiopia. Boeing said the timeline for the aircrafts' return to service remains uncertain, but the company will prioritize the delivery of stored Max jets before resuming production.

"Safely returning the 737 MAX to service is our top priority," Boeing said in a statement. "We know that the process of approving the 737 MAX's return to service, and of determining appropriate training requirements, must be extraordinarily thorough and robust, to ensure that our regulators, customers, and the flying public have confidence in the 737 MAX updates."

The company said affected employees will continue other work related to the 737, or be reassigned to other teams in Puget Sound. Concerns over potential layoffs at Boeing's Renton facility, where more than 12,000 are employed, prompted the city's mayor to issue a statement earlier in the day. IAM District 751, the local machinists union, released a statement Monday afternoon saying it had received no specific timeline regarding the start date or duration of the suspension.

According to the Associated Press, the stoppage could result in layoffs among some of the 900 companies that supply parts for the planes.

The Seattle Times reports Boeing had hoped to gain FAA approval for the aircrafts' return before the end of the year, but the Federal Aviation Administration has indicated that will not happen until sometime in 2020. According to the newspaper, FAA approval could potentially come by mid-February. Boeing's stock fell 4.3 percent by the market's close Monday.

Congressman Rick Larsen, who represents Washington's 2nd District and chairs the House Aviation Subcommittee, reacted to the news in a statement sent to the media Monday afternoon.

“Today’s Boeing announcement is a body blow to its workers and the region’s economy. The only saving grace is the Boeing leadership has promised not to lay off any workers. I am ready to work with Boeing workers to ensure they are protected and that they will have access to the necessary resources in the event of a prolonged shutdown.

In the meantime, the FAA should continue to emphasize that safety is the guiding principle for any return to service decision for the 737 MAX. The MAX is a great airplane and will be in use for many years, but the best decision for the long-term and for the workers at Boeing is ensuring the necessary changes needed to put the plane back in service are done only with safety in mind.”