The jet failed to meet Boeing's target for recertification from the Federal Aviation Administration.
Spirit CEO Tom Gentile in a Friday statement to employees said the Boeing supplier’s production rate in 2020 and beyond was uncertain, the Wichita Eagle reported.
The MAX program represents about half of Spirit’s revenue, the Eagle reported. As of Friday, the company had almost 90 MAX fuselages stored on a ramp adjacent to McConnell Air Force Base.
Spirit has extended its annual holiday break for aircraft workers in Wichita. Spirit is the largest employer in the state’s largest city and is Boeing's top supplier.
Last month, in a fourth-quarter earnings conference call, Chairman and CEO Thomas Gendron told analysts that "the impact to Woodward of the 737 MAX grounding on our fiscal year 2019 was minimal from an [Original Equipment Manufacturer] perspective, but we did see a more significant effect on initial provisioning sales."
Boeing reached its decision late Monday following a two-day board meeting in Chicago. The meeting came after the FAA's chief administrator, Steve Dickson, cautioned that multiple milestones need to be met before the MAX could be granted clearance.
The 737 MAX was grounded last spring following two fatal crashes over a five-month span between 2018 and 2019 that killed 346 people in Ethiopia and Indonesia and has cost the company more than $9 billion.
Boeing shares were up slightly to $327.56.