Aerospace company Boeing and aerostructure manufacturer Spirit AeroSystems have entered an agreement to gradually resume the production of 737 MAX aircraft.
Last month, Spirit AeroSystems announced that the company will stop all 737 MAX deliveries starting 1 January 2020.
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The move followed Boeing’s announcement to temporarily cease the production of 737 MAX this month.
The latest production rate agreement between the two parties will see Spirit resume deliveries of the aircraft throughout the year.
The company is planning to deliver a total of 216 MAX shipsets to Boeing this year.
The two sides are currently negotiating other terms of the agreement but Spirit is not expected to produce 52 shipsets a month until late 2022.
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By GlobalDataIn a statement, Spirit AeroSystems said: “The rate agreement is based on several assumptions, including Boeing’s expected production rate and the successful return of the 737 MAX to service.
“As previously disclosed, the 737 MAX contractual agreement is a requirements contract between Boeing and Spirit and the rate may change at any time.”
For Spirit, suspending production of the 737 components impacts its growth as it contributes more than 50% of the company’s annual revenue.
Boeing was forced to ground its 737 Max aircraft in March 2018 following two crashes.
The crashes in Indonesia and Ethiopia resulted in the deaths of 346 people.
Earlier this month, Boeing and the US Federal Aviation Administration (FAA) reportedly confirmed to have reviewed the 737 Max’s wiring system.
The US FAA also proposed a $5.4m fine on Boeing for installing faulty slat tracks on the aircraft.
