On Wednesday, Boeing announced that it has resumed production of its troubled 737 MAX aircraft at its Renton, Wash. factory.
The move comes as Boeing separately announced it is cutting 6,770 jobs, citing the COVID-19 pandemic’s “devastating impact on the airline industry.”
The 737 Max production has started up again “at a low rate,” according to a company statement. The company halted production in January, even before the COVID-19 pandemic brought global travel to a standstill.
Boeing closed down all of its plane production in late March as the coronavirus pandemic accelerated and states began ordering residents to shelter in place. Production of other models resumed in late April.
Orders for new aircraft and services have dried up in the wake of the collapse in global travel. Boeing reported no orders for new planes in April and said existing customers are cancelling or delaying orders.
“We’ve been on a continuous journey to evolve our production system and make it even stronger,” Walt Odisho, vice president and general manager of the 737 program for Boeing, said in a statement.
Jim Cramer breaks down why this is a good thing for Boeing and what it means going forward. Cramer said the restart is "more important than people realize" in the video above.
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