Boeing says production will remain suspended at Seattle factories until further notice

The rising cases of Coronavirus in the United States had pushed Boeing into announcing a shut down of its Seattle-area factories in March to minimize the fast spread of the flu-like virus and protect its employees against the health hazard. As the virus continues to spread across the U.S, Boeing (NYSE:BA) said on Monday that production at Seattle factories will now remain suspended for an indefinite period.

Boeing’s
factories in Seattle are dedicated to the production of its wide-body aircraft.
The company had initially
announced a two-week shutdown. On Monday, however, the largest U.S airplane
manufacturer said that the shutdown is extended until further notice. Boeing
said:

“These
actions are being taken in light of the company’s continuing focus on the
health and safety of employees, current assessment of the spread of COVID-19 in
Washington state, the reliability of the supply chain and additional
recommendations from government health authorities.”

Boeing
Has So Far Reported 135 Coronavirus Cases

Boeing’s
spokesman also reiterated that the move does not apply to its 787 factories
located in South Carolina. Employing roughly 160,000 workers, Boeing has so far
reported 135 confirmed cases of Coronavirus at its factories.

Boeing
had recently applied for government aid worth £48.77 billion ($60 billion). The
U.S Congress approved the £1.63 trillion ($2 trillion) Coronavirus stimulus
bill in the last week of March. The relief package, however, didn’t initially specify
the funds targeted at the airline industry.

Boeing’s
financial challenges are piling up since its world-renowned 737 Max jetliner
was grounded in March 2019 after two fatal crashes that killed 346 people. As
the pandemic further halts production at its factories, Boeing is now resorting
to cost-cutting strategies. The company suspended dividend payments in March
and is currently offering voluntary leaves to its employees to further cut on
expenditure.

Avolon
Cancels Order For 75 737 Max Aircraft

One
of the leading airplane-leasing companies, Avolon, also canceled its order on
Friday for four Airbus A330 jets and 75
737 Max that Boeing was scheduled to deliver by 2023.

At
£111.69, Boeing is currently trading around 60% down year to date in the stock
market. Owing to the 737 Max tragedy, its performance in 2019 wasn’t reported
any better with the stock keeping almost flat on average last year.

At
the time of writing, Boeing has a market cap of £63 billion.