Boeing said some of the Renton plant’s workers
could be reassigned to 737 or other programs
elsewhere in the Seattle area. Some could also
help to prepare the 400 Max planes Boeing has
built and stored, so they’re ready whenever
approval comes to return to the skies.
Investigators have found that flight control
software designed to stop an aerodynamic stall
was a major factor in the crashes, and Boeing is
updating the software, making it less aggressive.
But regulators have yet to approve the changes.
Jeff Windau, industrials analyst for Edward Jones,
said the 400 planes that Boeing has built but
can’t deliver likely were a major factor in the
decision to halt production. This comes “both
in consideration of storage space and how
efficiently can you get them delivered once the
plane is ready to return to service,” he said.
Boeing has made progress on some FAA
requirements to get the Max back in service,
Windau said, but he still views the production
halt as a negative for the company.
“The flight control system is complex and there
are still unknowns with the timing of regulator
reviews and approvals,” Windau wrote in an
email. He also wrote that it may be difficult
to restart an idled factory once production
ramps back up.
Boeing will likely face some tough negotiations
with suppliers about what level of payments
it will provide during the production hiatus.
The company will want to avoid any layoffs
or shutdowns by suppliers that would keep
it from quickly restarting production once its
safety is approved.