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Boeing to Shift Production Cost towards Software Maintenance

Boeing, an American multinational aerospace company is planning to cut down production of 737 Max jets by 20 percent from mid-April. The company will now produce forty two 737 Max jets in a month rather than fifty two. Following the announcement, shares of the company fell down by 2.3% in after-hours intraday trading on 5th of company. These is because of the prevailing dilemma among investors over future of the company.

Software Bug in Boeing Aircrafts behind Two Fatal Accidents

Dennis Muilenburg, the CEO of the company, came forward to resolve ambiguity among investors. He said the company is cutting on production costs to resolve a prevailing bug in software of the Max aircrafts.

The analyst of the company seems to agree with their CEO on the decision. They are planning to keep assembly line rolling at the current level itself. This will prevent company to lose on their supply chain.

In last six month, two Max aircrafts of Boeing crashed owing to faulty software. Due to this, countries around the world banned Max aircrafts from flying in their airspace. The Federal Aviation Administration (FAA) initially denied fault in software of the aircraft, however, agreed with the rest of the world on March 13 in grounding the Max.

The company hopes to fix software bug in a week timespan. Review and certification form the FAA and other international regulators will take some more weeks or even few months. This means full-fledged production of 737 Max aircraft will not start till June.

Ganesh Rajput
Ganesh’s extensive experienced in the field of market research reflects in the way his articles offer readers sharp insights on the latest developments across major industry verticals. His forte lies in churning out analytical commentaries on the evolving nature of various consumer-oriented industries.

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