Boeing will suspend production in Washington factories on coronavirus fears
With Washington state under an emergency declaration, Boeing announced Monday that it would suspend all aircraft production in the state by Wednesday.
"This necessary step protects our employees and the communities where they work and live," Boeing CEO Dave Calhoun said in a statement. "We continue to work closely with public health officials, and we're in contact with our customers, suppliers and other stakeholders who are affected by this temporary suspension. We regret the difficulty this will cause them, as well as our employees, but it's vital to maintain health and safety for all those who support our products and services, and to assist in the national effort to combat the spread of COVID-19."
Sign up for the free daily TPG newsletter for more aviation news.
The production pause comes after the death of a Boeing worker as a result of COVID-19, and 29 employees confirmed to have the disease, according to The Seattle Times.
The company announced that all affected employees would continue being paid during the factory closures, and Boeing is encouraging employees in Washington who can work from home to do so.
Related: The latest TPG stories about coronavirus.
During the pause in production, Boeing said it "will be conducting additional deep cleaning activities at impacted sites and establishing rigorous criteria for return to work." 787 assembly in South Carolina will not be affected, according to Bernard Choi, a Boeing spokesman.
While the production halt comes on the immediate heels of a Boeing employee's death, it also comes amid a global slump in demand for new airliners.
Boeing is in a particularly precarious situation as the coronavirus pandemic stretches on. Demand for new aircraft is drying up as airlines face a major drop in new bookings, coupled with a precipitous rise in cancellations. The manufacturer was already troubled as it addressed issues with its best-selling 737 MAX, which is grounded worldwide after two fatal crashes that together killed 346 people.
The airframer has been working to get those jets approved to fly again, but has taken a financial hit in the process, making it poorly positioned to deal with a prolonged demand slump.
TPG featured card
at Capital One's secure site
Terms & restrictions apply. See rates & fees.
| 2X miles | Earn 2X miles per $1 on every purchase, everywhere |
| 5X miles | Earn 5X miles per dollar on hotels, vacation rentals and rental cars booked through Capital One Business Travel |
Pros
- Simple earning structure
- Bonus categories
- Annual credits
- No foreign transaction fees
- Flexible redemption options, including transfer partners
Cons
- Has an annual fee
- Fewer bonus categories than some competitors
- Lacks premium perks
- Limited-time offer: Earn up to 150,000 bonus miles—75,000 miles once you spend $7,500 in the first 3 months, and an additional 75,000 miles once you spend $30,000 in the first 6 months
- Earn unlimited 2X miles per dollar on every purchase, everywhere, no limits or category restrictions, and miles won't expire for the life of the account
- Receive up to $220 in credits: Receive an annual $50 travel credit for bookings through Capital One Business Travel, up to an annual $50 statement credit for purchases at qualifying advertising or software merchants, plus up to a $120 credit for Global Entry or TSA PreCheck® every four years. Terms and conditions apply
- Unlimited 5X miles on hotels, vacation rentals and rental cars booked through Capital One Business Travel
- Transfer your miles to 15+ travel loyalty programs
- Redeem your miles instantly for any travel-related purchases, from flights and hotels to ride-sharing services
- $95 annual fee
- Free employee cards which also earn unlimited 2X miles from their purchases
- Top rated mobile app