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July 18
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Boeing Co will suspend production of its best-selling 737 MAX in January amid two disasters. This will be the largest suspension of the assembly line of the aircraft manufacturer in more than 20 years, Reuters reported.

Boeing said it would not cut any of the approximately 12,000 plant workers near Seattle, where the assembly of liners is underway.

However, this step is likely to have wider consequences and may adversely affect both the global supply chain of the company and the US economy.

The decision to suspend was made at a two-day board meeting after the United States Federal Aviation Administration refused to approve the resumption of the flight until 2020.

Operation of the 737 MAX was suspended in March after two plane crashes in Indonesia and Ethiopia, which killed 346 people. The ban on flights cost the aircraft manufacturer more than $ 9 billion.

The decision to suspend production will have virtually no immediate effect on airlines that have previously encountered a suspension of supplies. Many of them were forced to cancel flights or lease older models as a replacement.

However, it can hit the US economy. Rep. Rick Larsen called Boeing’s decision a crushing blow to its employees and the region’s economy.

Boeing did not say how long the suspension of the assembly could last, stressing that it depends on the FAA. Previous attempts to predict when the 737 MAX could return to service after making changes to the software caused a sharp reaction from the US regulator.

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