WICHITA, Kan. (KSNW) – Spirit AeroSystems has confirmed that it will suspend production of the 737 MAX beginning January 1.
On Thursday, Boeing directed Spirit to stop all 737 MAX deliveries on Jan. 1 due to Boeing’s announced temporary suspension of the plane’s production.
Revenue from 737 aircraft components represents more than 50 percent of Spirit’s annual revenue.
The company says this suspension will have an adverse impact on its business, financial condition, results of operations, and cash flows.
Spirit says additional financial information related to the suspension will be provided in its fourth quarter, full-year 2019 earnings release.
The company says it is evaluating all potential actions to align its cost base with lower production levels expected in 2020.
Spirit says decisions will be guided by a focus on what is best for the long-term interests of stockholders and other stakeholders, including employees.
The company will continue to communicate with Boeing regarding the timetable for resuming production.
On Friday afternoon, Cornell Bear, President / Directing Business Representative, District 70 of the International Association of Machinists and Aerospace Workers, released the following statement.
“Any information that I receive regarding the impact of the temporary suspension of the 737 MAX production will be immediately relayed to members of IAM Local Lodge 839 working at Spirit AeroSystems in Wichita. With the holidays upon us I encourage members to try and remain positive. It’s important to enjoy the well-deserved time off with your family and friends. Until the company releases more information about moving forward, there is comfort in knowing that employees will return to work on January 6, 2020.”
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