Spirit AeroSystems suspends Boeing 737 MAX production
Effective Jan. 1, 2020, Spirit AeroSystems is suspending production of 737 MAX components pending Boeing’s resumed production timetable.
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Source | Boeing
Spirit AeroSystems (Wichita, Kan., U.S.) announced on Dec. 20, 2019, that it is suspending all production for 737 MAX single-aisle aircraft, effective Jan. 1, 2020.
The company says that Boeing has directed it to stop all 737 MAX deliveries to Boeing beginning Jan. 1 due to Boeing’s announced temporary suspension of 737 production, caused by longer-than-expected re-certification for the aircraft after two 737 MAX crashes caused the aircraft to be grounded in early 2019. Spirit says it will continue to communicate with Boeing regarding the timetable for resuming production.
Because revenue from 737 aircraft components represents more than 50% of Spirit's annual revenue, the company says that this suspension will have an adverse impact on its business, financial condition, results of operations and cash flows. Additional financial information related to the suspension is expected to be provided in Spirit’s fourth quarter/full year 2019 earnings release.
Spirit says it is evaluating all potential actions to align its cost base with lower production levels expected in 2020. Decisions will be guided by a focus on what is best for the long-term interests of Spirit’s stockholders and other stakeholders, including employees.
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