Nearly 100 fuselages that were bound for Boeing's 737-MAX facility sit outside a factory in Kansas... [2/4] - Airplane fuselages bound for Boeing's 737 Max production facility sit in storage.jpg (1/1)

....as production on troubled aircraft grinds to a halt

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Boeing suppliers are bracing for a halt in production of the 737-MAX that will
start in January

Grounding of the planemaker's fast-selling aircraft will likely result in lost
revenues for hundreds of suppliers

Boeing has continued to purchase parts from some suppliers at a production rate
higher than its own, in order to keep the supply chain fluid and avoid major
disruptions when the MAX returns to service

But photos show there are dozens of 737-MAX fuselages sitting outside a factory
in Wichita, Kansas

Spirit AeroSystems receives nearly 80% of revenue from Boeing as it makes the
fuselage, pylons, thrust reverser, wing leading edges and engine nacelles

Spirit has continued to churn out parts for the jet at a rate of up to 52 units
per month, even as Boeing cut its own production to 42 per month - and at least
90 fuselages are now sitting on the concrete waiting to go

The suspension of MAX production will pressure suppliers that are relying on the
demand from Boeing

If parts supply companies stop production, it will be difficult for them to
quickly restart their factories, and that could further delay any startup of
Boeing´s assembly lines

The Max was grounded worldwide in March after the second of two deadly crashes
in Indonesia and Ethiopia that killed a total of 346 people

Workers at Boeing's biggest supplier for the building of its 737-MAX plane are
fearing for their jobs in the week before Christmas after the aircraft
manufacturer announced its decision to suspend construction of the aircraft.

Layoffs at Spirit AeroSystems Holdings Inc. in Wichita, Kansas seem almost
certain, particularly if Boeing stops paying Spirit to build and store fuselages
at current rates.

Evidence of the slowdown in construction is plain for all to see with at least
90 fuselages simply sitting on the concrete, under wraps, with nowhere to go
until a decision can be made to ramp up production once again, perhaps some time
in 2020.

With overwhelming demand for the 737-MAX plane, Spirit AeroSystems Holdings
planned to staff its factory with enough workers to maintain a build rate of 52
aircraft per month with plans to eventually increase to 57 aircraft - but that
was before the current nine-month crisis hit.

But Boeing's decision to suspend their 737MAX production will lead to a knock-on
effect to hundreds of suppliers that come together to help build the plane.

The Max was grounded worldwide in March after the second of two deadly crashes
in Indonesia and Ethiopia that killed a total of 346 people. For months, Boeing
used the parts to build about 400 Max planes that it could not deliver to
airlines.

Boeing does not currently plan to lay off any of the 12,000 workers at its
factory in Renton, Washington. But smaller parts companies like Wichita-based
Spirit AeroSystems might not have that luxury. They could be forced to cut
employees, and some might even get pushed out of business.

With 13,500 workers, Spirit is the largest employer in Kansas´ biggest city.



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