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Boeing is crowding its employee parking lot with undelivered 737 Max jets and the company says that's part of its 'inventory management plan'

Rachel Premack   

Boeing is crowding its employee parking lot with undelivered 737 Max jets and the company says that's part of its 'inventory management plan'
Transportation2 min read

boeing car employee parking lot

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Boeing has struggled to manage its supply of 737 Max jets months after the fallout from two fatal crashes involving the planes in late 2018 and early 2019.

And now, Boeing has had to crowd its employee parking lots with some undelivered planes, the local Seattle news station KING-TV reported.

"We are using resources across the Boeing enterprise during the pause in 737 MAX deliveries, including our facilities in Puget Sound, Boeing San Antonio and at Moses Lake," Boeing spokesperson Paul Bergman told Business Insider. "This is part of our inventory management plan."

Read more: An extensive new report suggests that the missing MH370's pilot was 'clinically depressed' and purposely killed all 239 on board

Faulty software on the Boeing 737 Max has led to two fatal crashes, which killed 346 people between October and March. The 737 Max was grounded worldwide after the March crash, leading Boeing to a first-quarter loss of $1 billion.

The embattled plane-maker is also shelling out quite a bit of money just to store those undelivered airplanes. Bloomberg reported that Boeing is spending some $2,000 a month to park each of them.

Bloomberg Intelligence analyst George Ferguson estimates that Boeing's inventory costs will surge to $12 billion by September.

"They can't keep building and parking planes indefinitely," Ferguson told Bloomberg. "We don't think it will get to that, but it's going to take a lot of cash to park those in the desert."

Get the latest Boeing stock price here.

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