The 737 MAX crisis continues at Boeing. The culmination of a disastrous year, the aircraft manufacturer has decided to halt production of the aircraft that caused two air disasters from January, according to a press release released on Monday, December 16. Boeing was speculating on an authorization to return the aircraft to service, which appears unlikely to intervene before February.
" We believe that this decision least disturbs the maintenance of the long-term production system and the health of the supply chain "Said the manufacturer. " We will continue to assess our progress towards return to service (from device) and make decisions about resuming production and deliveries accordingly Added the press release.
Immobilized since March after two accidents which occurred five months apart in Indonesia and Ethiopia and which killed 346 people, the plane had so far continued to be produced at the rate of 42 aircraft per month.
After accumulating more than 4,500 orders, the aeronautical giant also purchased the parts necessary to manufacture ten more per month, which generated an accumulation of more than 400 aircraft according to the Wall street journal.
Consequences for the American economy
This break will weigh on both the company and its subcontractors, notably CFM International for the reactors, a joint venture between General Electric and Safran, as well as Spirit AeroSystems, which works on the fuselage.
In turn, this ruling will also weigh on the American economy, even if it should not lead to any layoffs at the site concerned, which employs around 15,000 people in Washington state. According to an expert quoted on Monday by the business daily, this decision could indeed cost 0.3 points of growth due to the size of the giant of Seattle in the first quarter of 2020.
The production of the 737 MAX was expected to stop. On December 12, Steve Dickson, head of the Federal Aviation Administration (FAA), the American civil aviation authority, accused of having too close a relationship with Boeing, had been particularly harsh towards the aircraft manufacturer which has already lost more than nine billion dollars (around eight billion euros) with the immobilization of its aircraft.
In a letter to the elected members of Congress, he had " fears that Boeing will continue to pursue an unrealistic return to service schedule. ” Steve Dickson had judged " even more disturbing " the fact that " some of the public positions (from Boeing) could give the impression of wanting to force the FAA to act faster To authorize the 737 MAX to resume its flights.
Warning in June 2018
The two air disasters had a revealing effect on the company, as on the FAA. The latter's prestige was tarnished by its slowness to ground the aircraft, unlike other civil aviation authorities around the world, as well as by its failures in the aircraft certification process.
The investigation into the 737 MAX anti-stall system malfunctions that caused the two accidents also underscored the manufacturer’s willingness to bypass internal warnings. During his hearings by the two chambers of Congress in October, the director general of the aircraft manufacturer, Dennis Muilenburg, was also strongly attacked by the elected officials.
A senior aircraft production official, Ed Pierson, warned the program official in June 2018. " Frankly right now, all my alarms go off "He had assured in a letter revealed by the New york times. " And for the first time in my life, I'm sorry to say that I hesitate to put my family on a Boeing plane ", He had added, calling into question production problems, in particular rates incompatible with him according to the claimed security requirements. These problems were, however, denied by the aircraft manufacturer.
