Boeing has resumed production of its best-selling 737 MAX jetliner more than a month after a seven-week strike disrupted work. This was reported by Reuters, according to UNN.
Details
At the end of the December 10 session, Boeing shares rose more than 2% to close at $507. At the time, the stock was approaching $162 for the first time since October 21. Last month, the stock fell to a 2-year low of $137.
It is noted that production resumed last Friday, an important step for the heavily indebted aerospace giant as it seeks to fulfill about 4,200 orders for the 737 MAX amid growing global air travel demand.
The relaunch comes after a number of challenges the company has faced in recent years, including two fatal accidents, the COVID-19 pandemic, supply chain disruptions, and increased regulatory scrutiny.
In January, the US Federal Aviation Administration (FAA) limited the production of the 737 MAX to 38 aircraft per month after an emergency exit door on an Alaska Airlines jet broke off during a flight, indicating a continuing safety issue.
Earlier, the FAA announced that the company intends to resume production at the end of this month. Boeing's plans to increase production to 56 aircraft per month remain uncertain.
FAA Administrator Mike Whitaker told the publication that the production cap is likely to remain in place for several months before any changes are considered.
Recall
In November, Boeing's union approved a new labor agreement, ending a 7-week strike by 33,000 workers. The agreement provides for a 38% pay raise over four years.