Boeing Halts 737 Production
Labor strikes put a stop to aerospace giant’s biggest driver of sales.
Boeing 737 MAX aircraft in storage at Boeing Field [Credit: AirlineGeeks | William Derrickson]
Boeing 737 production ground to a halt on Wednesday as the company continues to be riddled with costly strikes in the Pacific Northwest.
A Fortune report stated that two separate representatives from Boeing confirmed the production stoppage after a Tuesday Bank of America analyst note suggested production of the company’s best-selling jets had come to a “complete halt.”
This comes as 33,000 striking International Association of Machinists and Aerospace Workers (IAM) members refused to vote on Boeing’s “final offer” for a contract on Monday. IAM stated that the offer wasn’t negotiated with union representatives and did not go far enough to address members’ concerns.
The strikes are predicted to cause $3.5 billion in revenue losses for Boeing by the end of September. A Bloomberg report analyzing the potential billions in revenue loss this month at the aerospace giant stated that the largest driver of sales is its 737 deliveries.
The company has attempted to cut costs by furloughing workers last week. It is currently unclear how long 737 production will be stopped.
Boeing did not immediately respond to AirlineGeeks’ request for comment.
Editor’s Note: This article first appeared on AirlineGeeks.com.
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