Boeing halts 737 MAX deliveries after two fatal crashes


BOEING Co. suffered dual setbacks Thursday when it paused deliveries of its 737 MAX jetliner and a U.S. Air Force official raised concerns about one of the company’s biggest military-plane programs.

The aircraft manufacturer said it has suspended deliveries of its 737 MAX following the grounding of the aircraft by aviation regulators around the world after two fatal crashes within five months.

A spokesman for Boeing said it hadn’t made any changes to its 737 production rate of 52 planes a month, but said the company continues “to work through production decisions.”

Boeing, the world’s top plane maker in terms of deliveries, will continue to build 737 MAX planes while assessing how capacity constraints could affect the company’s production system amid the world-wide restrictions, according to the spokesman.

Shares in the company fell 1% Thursday to $373.30. The stock is off 12% from $422.54 on Friday, before the fatal crash of an Ethiopian Airlines 737 MAX on Sunday. The incident in Ethiopia followed another fatal crash involving the same model plane, operated by Lion Air, in Indonesia in October.

The stock’s decline has erased $27.8 billion from Boeing’s market value since Friday.

Unlock exclusive insights, analyses, and curated news on the economy on The Star Online's Business section with Starbiz Premium.

Airlines