Boeing will temporarily halt production of its troubled 737 Max airliner in January, the manufacturer has said.
The company released a statement Monday night as it struggles to get approval from regulators to put the plane back in the air.
“As a result of this ongoing evaluation, we have decided to prioritize the delivery of stored aircraft and temporarily suspend production on the 737 program beginning next month,” the statement said.
More than 300 people died when two 737 Max aircraft crashed in Indonesia and Ethiopia after reported problems with a new feature.
Production of the jet had continued despite the model being grounded for nine months after the two deadly crashes, and according to Boeing, there are now approximately 400 airplanes in storage.
Boeing said that this decision is driven by a number of factors, such as the extension of certification into 2020 and the uncertainty about the timing and conditions of return to service and global training approvals.
The company said that it would not lay off the 12,000 workers associated with the 737 Max, but the stoppage is likely to affect suppliers and the wider economy.
“During this time, it is our plan that affected employees will continue 737-related work, or be temporarily assigned to other teams. As we have throughout the 737 MAX grounding, we will keep our customers, employees, and supply chain top of mind as we continue to assess appropriate actions”.
