Production resumed last Friday, a key step for the heavily indebted aerospace giant as it seeks to fill about 4,200 orders for the 737 MAX.
Boeing resumed production of its best-selling 737 MAX jet more than a month after a seven-week strike disrupted work. It was reported by Reuters.
At the end of the Dec. 10 session, Boeing shares rose more than 2% and closed at $507. At that time, quotes were approaching the $162 level for the first time since October 21. The stock had fallen to a more than 2-year low of $137 last month.
Production resumed on Friday, a major step for the heavily indebted aerospace giant as it seeks to fill about 4,200 orders for the 737 MAX amid surging air travel demand.
The relaunch comes after several challenges the company has faced in recent years, including two fatal accidents, the COVID-19 pandemic, supply chain disruptions and increased regulatory scrutiny.
In January, the US Federal Aviation Administration (FAA) limited 737 MAX production to 38 aircraft per month after the emergency exit doors on an Alaska Airlines jet popped open mid-flight, highlighting ongoing safety problems .
The FAA previously said the company expects to resume production next month. Boeing’s plans to increase production to 56 aircraft per month remain uncertain.
The cap on production levels will likely remain in place for several months before any changes are considered, FAA Administrator Mike Whitaker told Reuters last week.
Remember that Boeing employees went on strike demanding higher wages. The strike led to the suspension of production of the 737, 777 and 767 aircraft models. The international rating agency S&P Global Ratings estimates the damage from the protest action for Boeing at more than $1 billion per month.
Boeing workers also reportedly ended their strike, achieving a 38% wage increase.
Source: korrespondent
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