Boeing (BOE, Washington National) has announced in a press release that it will suspend the production of B737 MAX narrowbody jets in January 2020 as the recertification of the type is no longer expected by the end of 2019.

"We have decided to prioritize the delivery of stored aircraft and temporarily suspend production on the 737 program beginning next month. We believe this decision is least disruptive to maintaining long-term production system and supply chain health. This decision is driven by a number of factors, including the extension of certification into 2020, the uncertainty about the timing and conditions of return to service and global training approvals, and the importance of ensuring that we can prioritize the delivery of stored aircraft," the American manufacturer said.

Despite the global grounding of all B737 MAX and the resulting halt in new deliveries, Boeing continued to produce new units at a reduced rate of 42 per month. As a result, the manufacturer now has over 400 aircraft in storage awaiting recertification and delivery.

Boeing previously said that physical storage space was not a factor in considering whether to halt the B737 MAX production line.

It said that some 12,000 staff members currently employed at its site in Renton, which exclusively assembles B737s, will be redeployed to other locations in the Seattle metropolitan region or will continue "B737-related work". It said it did not expect any layoffs or furloughs at this stage.

The suspension's financial impact will be revealed with the company's fourth-quarter statement, usually released in January of the following year.

This is the first suspension of Boeing's production since 1997, when it halted the production of B737s and B747s for three weeks due to shortages of labour and spare parts. According to earlier estimates, the total impact of the moratorium on B737 MAX roll outs, including through suppliers, could reach 0.6% of US GDP.

While Boeing had hoped for the Federal Aviation Administration (FAA) to recertify the B737 MAX by the end of 2019, the agency has refused to provide any specific timeline. Last week, FAA Administrator Steve Dickson confirmed that the recertification had slipped to 2020. Reuters quoted an official suggesting that approval will most likely be granted in February or even March 2020.

According to the ch-aviation Commercial Aviation Aircraft Data module, there are 382 B737 MAX units delivered to customers globally, all of which have been grounded since mid-March 2019, barring ad-hoc ferry and repositioning flights.