The 737 Max was grounded in March following two fatal crashes involving the model in just five months, killing 346 people.
The manufacturer has been working on a software update for a flight system believed to have been responsible for both crashes, and new pilot training resources, but the US Federal Aviation Administration (FAA) is yet to approve either.
A US congressional hearing last week heard how this would now lapse well into 2020, with certification in Europe likely to take even longer owing to Easa, the European Union Aviation Safety Agency, requiring sign-off from the FAA before it allows the 737 Max to return to service in Europe.
A number of European airlines are already counting the cost of the delay, notably Tui, which forecasts a further €220 million to €270 million hit if the aircraft is not returned to service by the end of April 2020.
Norwegian also has grounded Maxs, while Ryanair’s plans to expand its programme based on its proposed new 737 Max fleet have been put on hold.
Despite the grounding, production of the 737 Max has continued this year, albeit at a slightly slower pace.
Boeing said it was now halting production as the number of new aircraft it has in storage had become unsustainable.
It will focus instead on delivery stored aircraft to customers. Production will be suspended as of the start of January. Boeing says no staff will be laid off or placed on leave while production is halted.
Boeing said the decision would be “the least disruptive” to maintaining long-term production, adding the move was driven by a number of factors: the extension of certification into 2020, and the subsequent uncertainty of the timing of this; and the importance of delivery stored aircraft.
Of staffing, Boeing said affected employees would continue with 737-related worked, or would be temporarily assigned to other teams.
Boeing will detail the impact of suspending production, and of the ongoing 737 Max grounding, on its finances during a fourth-quarter earnings call in late January.
“Safely returning the 737 Max to service is our top priority,” added Boeing in a statement. “We know 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.
“As we have previously said, the FAA and global regulatory authorities determine the timeline for certification and return to service.
“We remain fully committed to supporting this process. It is our duty to ensure every requirement is fulfilled, and every question from our regulators answered.”
