Business

Boeing board holding meeting over 737 crisis

SAN ANTONIO, TEXAS: Boeing's board of directors and top executives from its airplane division and supply chain were due to meet in San Antonio, two days after the US planemaker was plunged into a fresh crisis over its 737 Max jet.

The meeting comes as pressure mounts on the world's largest planemaker not only from investigations into the 737 Max following two deadly crashes, but also from the financial burden caused by the jet's safety ban and continued high production.

Several industry sources said there was speculation inside the company of significant job cuts as Boeing, unable to deliver 737 Max planes to customers, continues to drain cash.

And although Boeing has so far told suppliers it expects to maintain a production rate of 42 single-aisles monthly with plans to increase to a record level next near, rates may have to come down if regulators further delay the Max's return to service, the people said.

Apart from those issues, the board is likely to discuss a series of 2016 internal messages, first reported by Reuters on Friday, in which a senior Boeing pilot said he might have unintentionally misled regulators.

Prosecutors aided by the Federal Bureau of Investigation, the Office of Inspector General for the Department of Transportation and several blue-ribbon panels are also investigating the plane's approval. - REUTERS

BUSINESS & FINANCE