Stock Price Continues To Slide As Grounding Drags On

E-I-C Note: After this story went to press, Boeing has confirmed a temporary shutdown of the 737 MAX production line.

Boeing may be looking to further cut production of the 737 MAX airplane, or suspend the program entirely as the grounding of the airplane looks to drag into the next decade.

Multiple media outlets relay a report that first appeared in The Wall Street Journal which indicates that production of the plane may be cut or temporarily halted. CBS News reports that Boeing CEO Dennis Muilenburg had previously said that the program could be suspended if the plane was not flying again by the first of the year.

The Boeing Board was considering the move in a meeting that began Sunday and continued into Monday. Production cuts were increasingly being seen as a viable course of action, according to the Wall Street Journal report.

If the program is suspended, Boeing could divert dwindling resources to addressing the FAA's concerns about the MAX, one Bank of American analyst said.

Boeing reiterated in a statement that it "will continue to assess production decisions based on the timing and conditions of return to service, which will be based on regulatory approvals."

Production cuts could lead to layoffs in Seattle, where the plane is being manufactured. That could help Boeing control costs while the FAA and other regulators consider what will be required to allow the 737 MAX to return to service.

A further production cut or suspension of the program could be announced this week.

Boeing shares fell $10.30, or three percent, to $331.30 in early trading Monday.

(Image from file)

FMI: Source report