Spirit AeroSystems said Friday morning it will suspend production of the 737 Max beginning Jan. 1.
The company says Boeing ordered Spirit to halt all 737 deliveries. The 737 Max was grounded in March following two fatal crashes overseas.
Spirit did not say how the production suspension would affect its workforce of more than 13,000 people. The company is Wichita’s largest private employer.
Spirit makes more than 70 percent of the 737 at its south Wichita plant.
“Because revenue from 737 aircraft components represents more than 50 percent of Spirit’s annual revenue, this suspension will have an adverse impact on Spirit’s business, financial condition, results of operations, and cash flows,” the company said in a news release.
Spirit says it is continuing to evaluate its next steps to align its costs with the lower production levels.
Gov. Laura Kelly said earlier this week that the state is prepared to help Spirit, including using unemployment funds to help pay workers.
Boeing announced Monday that it was suspending production of the 737 at its Renton, Wash., plant. It has continued to produce the plane while waiting for the Federal Aviation Administration to give permission for it to fly again.
Boeing says it does not plan to lay off workers in Washington who work on the 737.
(Kansas News Service)
www.kcur.org
