Boeing will reassign 3,000 workers as airlines reach compensation deals over MAX

By David Shepardson

Boeing Co will reassign 3,000 workers to other jobs as it halts production of the grounded best-selling 737 MAX jet in mid-January.

The announcement came after American Airlines Group Inc and Mexico's Aeromexico on Monday disclosed they were the latest carriers to reach settlements with Boeing over losses resulting from the grounding of 737 MAX aircraft.

Neither airline disclosed the compensation. A number of airlines have struck confidential settlements with Boeing in recent weeks. Boeing said it does not comment on discussions with airlines.

Boeing's best-selling 737 MAX has been grounded since March, following two fatal crashes in five months that killed 346 people.

In an email to employees, Boeing said about 3,000 employees, mostly in manufacturing, engineering and fabrication, will be reassigned to other tasks. Most of those employees work at Boeing's Renton, Washington plant where the 737 MAX is manufactured while some are at Boeing's South Carolina operations.

Some staff will be reassigned to work on the 767 and 777/777X aircraft in Everett, Washington. Boeing has said it does not plan to lay off or furlough any workers as a result of the production halt.

Boeing also said it added a MAX storage facility in Victorville, California. Some employees from Renton will staff MAX airplane storage locations in Moses Lake, Washington and Victorville.

Boeing's biggest supplier, Spirit AeroSystems Inc, said Monday it would offer voluntary layoffs to some employees as it grapples with the production halt. The company said last month it would suspend production of 737 MAX parts beginning Jan. 1.

Reuters has reported the Federal Aviation Administration is not expected to approve the plane's return to service until at least February and potentially March or later.

U.S. airlines will not resume 737 MAX flights until at least early April, they have said.

Boeing and the FAA said Sunday they are reviewing a potentially serious wiring issue that could delay the return of the 737 MAX.

American said the compensation from Boeing will be received over several years, and of the total amount, more than $30 million will be used for the airline's 2019 employee profit-sharing program.

Southwest Airlines Co, the world's largest 737 MAX operator, said in December it had reached a confidential agreement with Boeing for a portion of a projected $830 million hit to operating income in 2019.

© (c) Copyright Thomson Reuters 2020.

©2020 GPlusMedia Inc.

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I would feel comfortable if Airbus was consulted to confirm the safety of any 737 MAX fix.

2 ( +3 / -1 )

Putting a patch on a patch to cover up a basic design flaw doesn’t fill me with confidence. I sure as hell will not be booking any flights in future on these aircraft.

1 ( +2 / -1 )

I've been gobsmacked with all the reportings so far as an engineer (but not aviation engineer). Like relying on a single AoA sensor to hand control to a system that pushes the nose down 'only' (not level the plane, just pushes the nose down), AND making a second sensor an optional upgrade.

Hello, el cheapo airlines with inexperienced pilots are not going to upgrade to 2 sensors.

Hello, a bird strike can down an entire plane?

Hello, training is at extra cost, but plane certified on older 737 documentation?

I also don't know why the computer couldn't rely on digital attitude information either? Was Boeing trying to force upgrade by not using attitude information?

Would love to get commentary from a pilot or aviation engineer here.

It's hard to fathom all this, in my line of work, we pulse controls until a desired outcome is reached, we would never just push in one direction, good engineering logic.

2 ( +2 / -0 )

Please don’t comment unless you are a aeronautical expert.

-2 ( +0 / -2 )

Please don’t comment unless you are a aeronautical expert.

"Aeronautical experts" are the ones who caused this mess in the first place. Posters like myself years ago pointed to Boeing's misguided management and operations years ago on the JT site, predicting doom for the company.

2 ( +2 / -0 )

I would like to see an option on ticket purchases, that states the Aircraft that you do not wish to fly within.

I will NO LONGER, following the Clowns & Monkeys revelation - wish to fly upon any aircraft with "Max" at the end of it. Boeing Max'd out their Public Trust ... and should, dispose of all 737 Max craft to the Recycle yard, refunding all those who were ... unfortunate to purchase such an aircraft from them.

1 ( +1 / -0 )

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