Boeing cuts 737 production rate by 10 planes per month

Boeing announced Friday it would cut the production schedule of its 737 aircraft line following the two recent crashes that have seen the 737 MAX grounded worldwide.

The aerospace giant plans to trim production to 42 planes per month, down from 52 per month, starting in mid-April.

Boeing shares tumbled after the disclosure, which was released just after the closing bell on Wall Street.

Boeing also announced it was establishing an advisory panel to review its company-wide policies for designing and developing planes.

The Federal Aviation Administration earlier this week said more work was needed before the aerospace giant could even submit a proposed fix that is believed to be a factor in the disasters.

Chief Executive Dennis Muilenburg described the production cut as temporary and said it would not affect current employment levels for the 737 and related programs.

"We are coordinating closely with our customers as we work through plans to mitigate the impact of this adjustment," Muilenburg said in a statement. "We will also work directly with our suppliers on their production plans to minimise operational disruption and financial impact of the production rate change."
"The committee will confirm the effectiveness of our policies and processes for assuring the highest level of safety on the 737 MAX program, as well as our other airplane programs, and recommend improvements to our policies and procedures," Muilenburg said. "Safety is our responsibility and we own it."