Boeing will suspend production in Washington factories on coronavirus fears
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
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.”
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.
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.
Featured photo by Patrick T. Fallon/Bloomberg via Getty Images.
WELCOME OFFER: 60,000 Points
TPG'S BONUS VALUATION*: $1,200
CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
- 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 60,000 points are worth $750 toward travel
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on orders over $12 for a minimum of one year on qualifying food purchases with DashPass, DoorDash's subscription service. Activate by 12/31/21.
- Earn 5X points on Lyft rides through March 2022. That’s 3X points in addition to the 2X points you already earn on travel.