U.S. Markets closed

Boeing Board to Meet Executives on 737 Max Jets, Reuters Says

Jihye Lee

(Bloomberg) -- Boeing Co.’s board of directors and top executives from its airplane division and supply chain are scheduled to meet Sunday to discuss 737 Max jets, Reuters reported, citing people it didn’t identify.

The meetings prompted speculation within the company that a significant number of jobs may be cut. They come amid the ongoing investigations into the aircraft after two fatal crashes and an increased financial burden following a safety ban of the jet, the report said.

Boeing may have to decrease its monthly production if regulators decide to further delay the resumption of the Max’s services, even after the planemaker told suppliers it plans to increase its output to a record high next year, Reuters said.

Kevin McAllister, who heads Boeing’s commercial airplanes division, as well as Jenette Ramos, senior vice president of manufacturing, supply chain and operations, are scheduled to visit Boeing’s Kelly Field facility in San Antonio, Texas, on Sunday, where a number of 737 Max jets are stored, Reuters cited two people as saying.

A Boeing spokesman declined to comment to Reuters on the board’s agenda and the company’s production or staffing levels.

Related Story: Boeing Pilot’s 2016 Worry on ‘Egregious’ Max Roils Jet’s Future

To contact the reporter on this story: Jihye Lee in Seoul at jlee2352@bloomberg.net

To contact the editors responsible for this story: Niluksi Koswanage at nkoswanage@bloomberg.net, Linus Chua, Siraj Datoo

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.