Boeing Resumes 737 MAX Production Amid Ongoing Challenges

 

On Tuesday (December 10), Boeing (NYSE: BA) reportedly restarted manufacturing its 737 MAX jetliner, its top-selling aircraft, following a shutdown caused by a seven-week workers' strike. Production resumed last Friday, signaling the progress that the debt-bearing aerospace company made in completing 4,200 backlogged orders to cope with increasing global air travel demand.

 

The resumption marks Boeing's new chapter after various challenges. Boeing used to have catastrophic crashes which plunged its stock. Its serious struggle is that the Federal Aviation Administration (FAA) capped 737 MAX production at 38 planes per month. The restriction followed a safety issue involving a missing door panel on an Alaska Airlines flight.

 

Currently, Boeing plans to increase production to 56 planes per month with an uncertain timeline. But, FAA Administrator Mike Whitaker recently announced that Boeing's production cap would likely last several months.

 

By resuming production of the 737 MAX, Boeing is trying to restore operational stability and market trust in its manufacturing capabilities after years of challenges that devalued its stock. As of the close of the US market on Monday, December 9, Boeing dipped 2.02%.