Boeing is expected to announce early this week whether it will continue to manufacture 737 Max jets or not amid uncertainties regarding the grounded jets' return to service.
On Sunday, the Wall Street Journal reported that the U.S. jet maker told investors there is a possibility production will be slashed or even halted temporarily until the Federal Aviation Administration (FAA) recertifies the planes.
Boeing CEO Dennis Muilenburg reportedly explained to investors that halting production in the meantime is "more efficient" compared to slowing down production as the company ha been doing over the past months.
Before news of the warning to investors emerged, Boeing, for the first time since the 737 Max jets were grounded, admitted that the planes will not be recertified this year. The acknowledgment came after the industry analysts projected that the troubled jets will be recertified next year.
Furthermore, FAA chief Steve Dickson said last week that it is unlikely the planes will be cleared for service until 2020, although no exact date has been provided yet as passengers and industry experts alike continue to doubt the American airplane maker's safety protocols.
Despite increased backlash from the victims' families, Boeing seems to be getting support from several airline companies, including Southwest Airlines. Last week, Southwest revealed that it has finally reached a deal with its 737 Max providers regarding damages.
According to CNBC, the two parties reached an agreement regarding compensation for financial damages that were incurred ever since the troubled planes were grounded globally.
$125 million will be shared with Southwest Airlines, as part of the deal. CEO Gary Kelly noted that the said amount was based on estimated damages incurred this year.
Boeing has yet to comment on the matter but Southwest said it is expecting its provider to cut prices on the latter's current orders, as well as future orders since the carrier has been incurring losses due to the 737 Max jets' grounding.
In other news, Boeing competitor Airbus was chosen by Australian carrier Qantas for "Project Sunrise," which includes some of the world's longest passenger routes. According to CNN, the company has yet to place official orders but the news came during a critical time for the two aircraft rivals.
Airbus has been hard at work in attracting Qantas for Project Sunrise. The latter did acknowledge that before it signs the deal, feasibility should be sure enough to generate profits.
Boeing and Airbus are both trying to snag as many deals as they can but some industry experts noted that the former is getting left behind since the 737 Max was grounded following two major crashes that took 346 lives in total.
