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Boeing Extends Suspension Of Production In Seattle Area Indefinitely

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Boeing Extends Suspension Of Production In Seattle Area Indefinitely

Due to the coronavirus pandemic, Boeing Co. (NYSE: BA) has announced an indefinite suspension of production operations at all Puget Sound and Moses Lake locations until further notice.

What Happened

The aerospace manufacturer released a statement saying that taking into account the spread of Covid-19, the health and safety of its employees, the reliability of its supply chain, and recommendations from government health authorities, the aviation giant has indefinitely ceased production operations at its Seattle area sites.

During the period of suspension, Boeing will implement additional health and safety measures to protect its employees, including visual cues to encourage physical distancing, more frequent and thorough cleaning of work and common areas, and the introduction of staggered shifts to reduce employee flow.

Boeing Commercial Airplanes’ CEO Stan Deal said in a statement, “We will take this time to continue to listen to our incredible team and assess applicable government direction, the spread of the coronavirus in the community and the reliability of our suppliers to ensure we are ready for a safe and orderly return to operations.”

Why It Matters

Boeing employs nearly 160,000 people, among whom 135 have tested positive for COVID-19, according to a spokesperson as revealed to CNBC.

According to a company-issued statement, Boeing has also temporarily suspended operations at its Philadelphia facility, which produces the H-47 Chinook and V-22 Osprey aircraft for its defense customers.
The coronavirus pandemic has severely impacted the aerospace manufacturing industry, with Boeing asking $60 billion in government aid. The recently passed CARES Act, which provides $2 trillion relief to COVID-19 impacted businesses, has provisions to help the ailing aviation industry.
Boeing has said that volunteers supporting essential site and services work at both Puget Sound and Moses Lake areas, should continue to report to their assigned shifts, and those working from home should continue to do so.
Apart from the coronavirus, Boeing is also grappling with repeated delays in bringing its grounded Boeing 737 MAX planes back into service. The company wanted to restart production in May to clear the backlog of 400 undelivered planes.

What Else

Engine supplier to Boeing, GE Aviation, a General Electric Company (NYSE: GE) subsidiary, has furloughed half its workforce due to the pandemic.

Price Action

Boeing shares traded 1.45% lower at $122.72. in the after-hours session on Friday. The shares had closed the regular session 1.01% higher at $124.52.

 

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