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Boeing Will Reassign 3,000 Workers as Airlines Reach Compensation Deals Over MAX

Boeing Co said Monday that it will reassign 3,000 workers to other jobs as it halts production of the grounded best-selling 737 MAX jet in mid-January.

The announcement came after American Airlines Group Inc. and Mexicos Aeromexico disclosed they were the latest carriers to reach settlements with Boeing over losses resulting from the grounding of 737 MAX aircraft.

Neither airline disclosed the compensation. A number of airlines have struck confidential settlements with Boeing in recent weeks. Boeing said it does not comment on discussions with airlines.

Boeings best-selling 737 MAX has been grounded since March, following two fatal crashes in five months that killed 346 people.

In an email to employees, Boeing said about 3,000 employees, mostly in manufacturing, engineering and fabrication, will be reassigned to other tasks. Most of those employees work at Boeings Renton, Washington plant where the 737 MAX is manufactured while some are at Boeings South Carolina operations.

Some staff will be reassigned to work on the 767 and 777/777X aircraft in Everett, Washington. Boeing has said it does not plan to lay off or furlough any workers as a result of the production halt.

Boeing also said it added a MAX storage facility in Victorville, California. Some employees from Renton will staff MAX airplane storage locations in Moses Lake, Washington and Victorville.

Boeings biggest supplier, Spirit AeroSystems Inc., said Monday it would offer voluntary layoffs to some employees as it grapples with the production halt. The company said last month it would suspend production of 737 MAX parts beginning Jan. 1.

Reuters has reported the Federal Aviation Administration is not expected to approve the planes return to service until at least February and potentially March or later.

U.S. airlines will not resume 737 MAX flights until at least early April, they have said.

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