Boeing cutting production rate of troubled 737 Max jet
Chicago: Boeing will cut production of its troubled 737 Max airliner this month, underscoring the growing financial risk it faces the longer that its best-selling plane remains grounded after two deadly crashes.
The company said Friday that starting in mid-April it will cut production of the plane to 42 from 52 planes per month so it can focus its attention on fixing the flight-control software that has been implicated in the crashes.
The move was not a complete surprise. Boeing had already suspended deliveries of the Max last month after regulators around the world grounded the jet.
Preliminary reports into accidents in Indonesia and Ethiopia found that faulty sensor readings erroneously triggered an anti-stall system that pushed the plane's nose down. Pilots of each plane struggled in vain to regain control over the automated system.
In all, 346 people died in the crashes. Boeing faces a growing number of lawsuits filed by families of the victims.
Boeing also announced it is creating a special board committee to review airplane design and development.
The announcement to cut production comes after Boeing acknowledged that a second software issue has emerged that needs fixing on the Max a discovery that explained why the aircraft maker had pushed back its ambitious schedule for getting the planes back in the air.
A Boeing spokesman called it a "relatively minor issue" and said the plane maker already has a fix in the works. He said the latest issue is not part of flight-control software called MCAS that Boeing has been working to upgrade since the first crash.
Chairman and CEO Dennis Muilenburg described the production cut as temporary and a response to the suspension of Max deliveries.
Boeing has delivered fewer than 400 Max jets but has a backlog of more than 4,600 unfilled orders. The Chicago-based company had hoped to expand Max production this year to 57 planes a month.
Indonesia's Garuda Airlines has said it will cancel an order for 49 Max jets. Other airlines, including Lion Air, whose Max 8 crashed off the coast of Indonesia on Oct. 29, have raised the possibility of canceling.
A Boeing official said Friday's announcement about cutting production was not due to potential cancellations. The official spoke on condition of anonymity because Boeing does not publicly discuss those details.
In a statement, Muilenburg said the reduction was designed to keep a healthy production system and maintain current employment in effect, slowing down production now to avoid a deeper cut later, if fixing the plane takes longer than expected.
Analysts say the absence of deliveries will eat into Boeing's cash flow because it gets most of the cost of a plane upon delivery.
Boeing declined to provide figures, but undelivered Max jets have been stacking up at its Renton, Washington, assembly plant.
Airlines that operate the Max will be squeezed the longer the planes are grounded, particularly if the interruption extends into the peak summer travel season.
They could buy used 737s, but that would be costly because the comparably sized Boeing 737-800 was very popular and in short supply even before the Max problems, according to Jim Williams, publisher of Airfax, a newsletter that tracks transactions involving commercial aircraft.
Williams said that if the Max grounding appears likely to extend into summer it will cause airlines to explore short-term leases, which could push lease rates higher, something that airline analysts say is already happening.
Boeing shares closed at USD 391.93, down USD 3.93. In after-hours after news of the production cut, they slipped another USD 8.98, or 2.3%, to USD 382.85.
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JioHotstar to invest Rs 4,000 crore for South Indian content push; unveils 25-title slate
Chennai (PTI): Streaming service JioHotstar on Tuesday announced that it will invest Rs 4,000 crore over the next five years to strengthen South India’s creative economy, unveiling a 25-title slate as part of a major push for regional content.
In one of the biggest announcements by an Indian streaming platform for the southern markets, the company showcased its “South Unbound” vision at a high-profile event here.
Sushant Sreeram, Head – SVOD Business & Chief Marketing Officer at JioStar, said the investment forms part of a broader collaboration with the Tamil Nadu government.
“Earlier today, JioHotstar formalised a Letter of Intent with the Government of Tamil Nadu in the presence of the Chief Minister M K Stalin. This outlines a shared commitment to invest in talent, expand infrastructure and build a future-ready creative economy from the South.
"As part of this vision, JioHotstar will invest Rs 4,000 crore to nurture creators, strengthen the production ecosystem and build a pipeline of stories that are ready for India and ready for the world,” he said.
Calling South India the “heartbeat of Indian storytelling”, Sreeram said the investment signalled the platform’s long-term commitment to local creators.
"JioHotstar started as a dream — to build entertainment rooted in India’s storytelling heritage and powered by cutting-edge technology. The resplendent storytelling traditions of the South motivate us to keep championing authentic, rooted narratives while offering greater accessibility and choices for every viewer," he said.
The event was attended by Tamil Nadu Deputy Chief Minister Udhayanidhi Stalin, veteran actor and MP Kamal Haasan, senior state officials, and leading stars and filmmakers from across the southern industries.
Deputy CM Stalin said the partnership will generate “1,000 direct jobs and 15,000 indirect jobs”.
“Cinema in Tamil Nadu has always been a force for social change. OTT is not replacing cinema; it is expanding it. Today, a filmmaker in Madurai or Salem can upload a story and reach audiences across the world. The cultural and economic impact of this partnership will be massive," he added.
aasan said Indian media and entertainment was undergoing a fundamental transformation driven not by technology alone, but by the audience itself.
“We gather at a moment when India’s media and entertainment is not merely growing, it is transforming. For the first time, this shift is not driven by device or format, but by the audience itself,” he said, adding that storytelling today is “screen agnostic”.
“Regional is becoming the new national, and ethnic the new international. Stories born in Madurai, Malappuram or Machilipatnam are no longer regional cinema; they are national cultural events,” Haasan said, giving the example of movies such as “Kantara”, “Drishyam”, “Baahubali”, “Pushpa” and Tamil hits like “Vikram”.
The event was also attended by Mohanlal, Nagarjuna, Vijay Sethupathi, Priyamani, Aishwarya Rajesh and others -- along with directors Jeethu Joseph and Ahammed Khabeer
The streamer's ambitious content slate, unveiled as part of its “South Unbound” initiative, includes sequels to blockbuster franchises, new long-format shows, films, adaptations, and high-engagement reality formats.
The Tamil slate features a mix of returning favourites and new originals, led by "Bigg Boss Tamil", now hosted by Vijay Sethupathi, and "Good Wife S2", the legal drama starring Priyamani.
The lineup also includes "LBW – Love Beyond Wicket", a relationship drama; the family comedy "Cousins and Kalyanams"; the psychological drama "Resort"; and "Heartbeat S3", which brings back Anumol, Karthik Kumar and Deepa Balu.
Other Tamil offerings include "Lingam", an action-drama; "Love Always", a multigenerational love story; the marquee title "Kaattaan" starring Vijay Sethupathi and Milind Soman; and "Second Love", a non-fiction relationship series.
In Telugu, the platform returns with "Bigg Boss Telugu" hosted by Nagarjuna, alongside new originals such as "Moodu Lantharlu" starring Aishwarya Rajesh; the police procedural "Vikram on Duty"; "Varam", a mystical relationship drama; and the hit comedy-drama "Save The Tigers S3" with Chaitanya Krishna.
The slate further includes "Vishakha", the Telugu adaptation of "Aarya" led by Kajal Aggarwal; the relationship-based non-fiction format "Mad for Each Other"; and the Telugu debut of the iconic adventure franchise "Roadies".
From Malayalam, the platform brings back "Bigg Boss Malayalam" hosted by Mohanlal; "Kerala Crime Files S3" featuring Aju Varghese; the mystery drama "Secret Stories: Roslin"; "Anali", "1000 Babies S2" with Neena Gupta and Rahman; and the hard-hitting drama "Pharma" starring Nivin Pauly.
The Kannada lineup includes "Bigg Boss Kannada" hosted by Kichcha Sudeepa; "Batchmates", a nostalgic friendship drama; and the food-and-humour-based non-fiction series "Comedy Cooks".
Across languages, the platform also announced new films such as "Lucky The Superstar", featuring GV Prakash, Anaswara Rajan and Meghna Sumesh, and "Kenatha Kaanom", positioned as broad-appeal mainstream entertainers.
