Production will be cut to 42 airplanes per month from 52 starting mid-April, the company said in a statement, without giving an end-date.(Reuters)
Production will be cut to 42 airplanes per month from 52 starting mid-April, the company said in a statement, without giving an end-date.(Reuters)

Boeing to cut 737 Max production rate by 10 planes per month in wake of two deadly crash

The crash in Ethiopia and the crash of a Lion Air plane in Indonesia last October that killed all 189 people on board have left the world’s largest planemaker in crisis.
By Reuters | CHICAGO
UPDATED ON APR 06, 2019 05:57 PM IST

Boeing Co said on Friday it plans to cut its monthly 737 aircraft production by nearly 20 percent in the wake of two deadly crashes, signalling it does not expect aviation authorities to allow the plane back in the air anytime soon.

Deliveries of Boeing’s best-selling aircraft were frozen after a global grounding of the narrowbody model following the crash of an Ethiopian Airlines jet on March 10, killing all 157 people onboard.

Production will be cut to 42 airplanes per month from 52 starting mid-April, the company said in a statement, without giving an end-date.

U.S. and airline officials said they now believe the plane could be grounded for at least two months, but an even longer grounding is a serious possibility.

The crash in Ethiopia and the crash of a Lion Air plane in Indonesia last October that killed all 189 people on board have left the world’s largest planemaker in crisis.

Chief Executive Officer Dennis Muilenburg said on Friday said the company now knows that a chain of events caused both disasters, with erroneous activation of so-called MCAS anti-stall software “a common link” between the two.

Boeing said it would not reduce jobs at the new production rate and will work to minimize the financial impact.

The company’s board will establish a committee to review how the company designs and develops airplanes, Muilenburg said. The group will “recommend improvements to our policies and procedures” for its 737 MAX and other airplane programs.

Boeing said it continues to make progress on a 737 MAX software update to prevent further accidents.

Shares in Boeing Co fell around two percent after the market closed on Friday. While the number of 737 MAX planes grounded is just over 370, nearly 5,000 more are on order.

Boeing faces logistical issues in finding places to park the growing number of planes as well as being responsible for all their maintenance costs since it has been unable to deliver the jets to customers, two people briefed on the situation said.

Manufacturers avoid halting and then resuming production as this disrupts supply chains and can cause industrial snags. Boeing had been planning to speed up production in June to 57 a month.

Having to hold planes in storage without delivering them does, however, consume extra cash through increased inventory.

Boeing supplier Spirit Aerosystems Holdings said it will continue to make 52 737 MAX shipsets - the complete set of parts for each aircraft - per month, storing extras at its facilities. Its shares fell 3.5 percent.

National Transportation Safety Board (NTSB) chairman Robert Sumwalt told reporters that U.S. investigators were given the raw data from Ethiopian Airlines Flight 302 as soon as it was read in France last month. He added that the Ethiopian Airlines 302 preliminary report “was very thorough and well done.”

Former NTSB chairman Christopher Hart was named by the Federal Aviation Administration this week to head an international team to review the safety of the 737 MAX.

He told reporters on Friday he thought the review, which will start on Monday, could take about three months. It is still not clear what countries will take part.

He said investigators are going to be focused far more on the interaction between software and pilots than mechanical issues in future.

“This is territory we are going to see more of,” Hart said.

SHARE THIS ARTICLE ON
Close
Tai said she would work to ensure that China meets its commitments under a January 2020 trade accord between Beijing and Washington.(Bloomberg Photo)
Tai said she would work to ensure that China meets its commitments under a January 2020 trade accord between Beijing and Washington.(Bloomberg Photo)

US trade nominee says Prez Joe Biden's team backs use of tariffs

Posted by Harshit Sabarwal | AFP
PUBLISHED ON FEB 25, 2021 11:59 PM IST
"Tariffs are a very important part of our fair trade remedies toolbox," US Trade Representative, Katherine Tai told the Senate Finance Committee, signaling the new US team on commerce policy had no plans for a complete about-face from the hardline stance of Donald Trump's government.
Close
The Twitter App loads on an iPhone in this illustration photograph(Reuters)
The Twitter App loads on an iPhone in this illustration photograph(Reuters)

Twitter expects annual revenue to double in 2023

Reuters
PUBLISHED ON FEB 25, 2021 08:46 PM IST
The social network expects to reach at least 315 million monetizable daily active users (mDAU) by the fourth quarter of 2023.
Close
World Bank President David Malpass said “a prominent risk for some of the countries at the bottom, and that has to do with the difficulty of getting new investment,”(Reuters)
World Bank President David Malpass said “a prominent risk for some of the countries at the bottom, and that has to do with the difficulty of getting new investment,”(Reuters)

Debt crisis threatens developing nations, says World Bank head

Bloomberg
PUBLISHED ON FEB 25, 2021 08:19 PM IST
World Bank President David Malpass spoke before the start of a meeting of finance ministers and central bankers from the Group of 20 biggest economies on Friday.
Close
Sebi has sought data from exchanges to ascertain any irregular patterns, according to a person with direct knowledge of the matter.(PTI File Photo)
Sebi has sought data from exchanges to ascertain any irregular patterns, according to a person with direct knowledge of the matter.(PTI File Photo)

Sebi to issue guidelines related to environmental, social, corporate governance

PTI, New Delhi
PUBLISHED ON FEB 25, 2021 06:49 PM IST
Tyagi noted that certain unique trends have emerged in the wake of the pandemic.
Close
Market experts say NSE was more to blame and brokers have their hands tied in such situations. (ANI Photo)
Market experts say NSE was more to blame and brokers have their hands tied in such situations. (ANI Photo)

India's top brokerage Zerodha faces investor fury after stock exchange glitch

Reuters, Mumbai
PUBLISHED ON FEB 25, 2021 06:15 PM IST
Hundreds of traders who bought stocks via Zerodha voiced concern on Twitter, with many posting pictures showing portfolio losses due to trades squared off by the broker.
Close
The <span class='webrupee'>₹</span>4,633 crore IPO of Indian Railway Finance Corporation (IRFC) was subscribed 3.49 times on the final day of bidding on Wednesday.(Mint Archive)
The 4,633 crore IPO of Indian Railway Finance Corporation (IRFC) was subscribed 3.49 times on the final day of bidding on Wednesday.(Mint Archive)

IPOs this fiscal largely from companies resilient to pandemic: Sebi chairman

PTI
PUBLISHED ON FEB 25, 2021 06:13 PM IST
"Every IPO saw a good amount of subscription with every issue being oversubscribed by atleast more than 2 times. Six of the total 18 IPOs, that is 1/3rd of the total number of IPOs were oversubscribed more than 100 times. Of these 6 IPOs, 5 were oversubscribed around or over 150 times," Tyagi said.
Close
Telecom instability affected NSE’s online risk management system (PTI File Photo)
Telecom instability affected NSE’s online risk management system (PTI File Photo)

Day after NSE disruption, India stocks advance on expiry day

Bloomberg
PUBLISHED ON FEB 25, 2021 05:57 PM IST
The NSE Nifty 50 Index climbed 0.8% to 15,097.35 in Mumbai, a day after the bourses
Close
After introducing special subscriptions for mobile, Netflix aims at South Korea to increase its subscribers.(Bloomberg)
After introducing special subscriptions for mobile, Netflix aims at South Korea to increase its subscribers.(Bloomberg)

Netflix plans $500 million spending in Korea to crack Asia

Bloomberg
PUBLISHED ON FEB 25, 2021 05:49 PM IST
The Los Gatos, California-based company has identified South Korea as one of the keys to its success in Asia, a vast region home to more than half of the world’s population.
Close
Reddit discussion threads were buzzing again about GameStop on Thursday, with members exhorting others to pile into the stock as the rally gathers steam.(REUTERS)
Reddit discussion threads were buzzing again about GameStop on Thursday, with members exhorting others to pile into the stock as the rally gathers steam.(REUTERS)

GameStop rally builds after puzzling ice-cream cone tweet

Posted by Kunal Gaurav | Reuters
PUBLISHED ON FEB 25, 2021 05:35 PM IST
The latest moves build on Wednesday's rally in GameStop and other so-called "stonks" favoured by retail traders on social media sites such as Reddit's WallStreetBets.
Close
Boosting revenue has been Chief Executive Bill Winters' main headache in recent years, as slowing growth in many of the bank's key markets, a commodities downturn and low central bank rates all conspired to crush income.(Bloomberg)
Boosting revenue has been Chief Executive Bill Winters' main headache in recent years, as slowing growth in many of the bank's key markets, a commodities downturn and low central bank rates all conspired to crush income.(Bloomberg)

Standard Chartered restores dividend, reaffirms goals as Covid-19 halves profit

Reuters, Hong Kong
PUBLISHED ON FEB 25, 2021 03:57 PM IST
The Asia, Africa and Middle East-focused bank however warned that income in 2021 is likely to be close to last year, showing the challenge it faces to meet its modest profit goals in a world of rock-bottom interest rates.
Close
Sensex opened 100 points higher at 49,860 while Nifty traded above 14,700.(ANI)
Sensex opened 100 points higher at 49,860 while Nifty traded above 14,700.(ANI)

Sensex jumps 257 points at 51,039.31; Nifty gains 115.35 points

PTI, New Delhi, Mumbai
UPDATED ON FEB 25, 2021 04:06 PM IST
  • The 30-share BSE index ended 257.62 points or 0.51 per cent higher at 51,039.31.
Close
Hitting maximum deliveries is crucial for Tesla in order for CEO Elon Musk to meet his ambitious goal of selling 20 million cars a year by 2030.(REUTERS)
Hitting maximum deliveries is crucial for Tesla in order for CEO Elon Musk to meet his ambitious goal of selling 20 million cars a year by 2030.(REUTERS)

Tesla temporarily halts production at Model 3 line in California

Bloomberg
PUBLISHED ON FEB 25, 2021 03:36 PM IST
  • Workers on a Model 3 production line in Fremont were told their line would be down from Feb. 22 until March 7
Close
Chinese Foreign Ministry spokesman Zhao Lijian speaks during a daily briefing at the Ministry of Foreign Affairs office in Beijing.(AP)
Chinese Foreign Ministry spokesman Zhao Lijian speaks during a daily briefing at the Ministry of Foreign Affairs office in Beijing.(AP)

China says Biden's bid to shift US supply chains is 'not realistic'

Bloomberg
UPDATED ON FEB 25, 2021 03:23 PM IST
  • China dismissed efforts to shift US supply chains toward alternative sources as unrealistic, hitting back hours after President Joe Biden signed an order to review how America buys strategic goods.
Close
Finance Minister Nirmala Sitharaman also spoke about the successful dissemination of Covid vaccines to around 100 countries and highlighted the role played by the private sector in helping project India's image as a 'global friend'.
Finance Minister Nirmala Sitharaman also spoke about the successful dissemination of Covid vaccines to around 100 countries and highlighted the role played by the private sector in helping project India's image as a 'global friend'.

'Private sector has to be involved in India's growth story': FM Sitharaman

Posted by Prashasti Singh | ANI, Bengaluru
UPDATED ON FEB 25, 2021 03:10 PM IST
Finance Minister Nirmala Sitharaman also emphasized the need for involvement and participation from the private sectors in order to meet these demands.
Close
Workers sit on cotton bales being transported. The bales were packed into 42 wagons and sent to the neighbouring country via Kolkata.(REUTERS)
Workers sit on cotton bales being transported. The bales were packed into 42 wagons and sent to the neighbouring country via Kolkata.(REUTERS)

Kalahandi exports high quality cotton to Bangladesh

PTI, Bhawanipatna
PUBLISHED ON FEB 25, 2021 01:48 PM IST
This is for the first time on Wednesday when the Cotton Corporation of India (CCI) exported cotton to Bangladesh through a goods train from Junagarh Road railway station in the district.
Close
SHARE
Story Saved
OPEN APP