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Boeing shares tumble on report of 737 Max production cuts


December 16, 2019
By The Associated Press

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Boeing’s stock is down four per cent before the opening bell on a report that the company may cut production of its troubled 737 Max or even end production all together.

The Wall Street Journal reported Sunday that Boeing’s board was considering its options in meetings that began over the weekend and are continuing Monday. The newspaper, citing people it did not identify, said management is increasingly seeing production cuts as a viable option.

The shift, according to the Journal, took place after U.S. regulators told the manufacturer that its timetable for the return of the Max was unrealistic.

Boeing had no immediate comment, but stuck to its previous stance that it continues to work with the U.S. Federal Aviation Administration and global regulators on the Max, which was grounded in March after deadly crashes in Indonesia and Ethiopia that killed a total of 346 people.

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Shares of Boeing Co., based in Chicago, are down 10 per cent over the past three months.

News from © The Canadian Press Enterprises 2019