Boeing Co said it will temporarily halt production of its best-selling 737 Max following two fatal crashes within five months.

The model has been grounded since March after crashes in Indonesia and Ethiopia killed 346 people, costing the plane manufacturer more than £6.75 billion so far.

Boeing’s decision follows the news that the Federal Aviation Administration would not approve the plane’s return to service before 2020.

Production of the 737 will be halted from January, in a move that could hit the company’s global supply chain.

No employees will be laid off during the production freeze, the company said.

Until now Boeing has continued to produce 737 MAX jets at a rate of 42 per month and purchase parts from suppliers at a rate of up to 52 units per month, even though deliveries are frozen until regulators approve the aircraft to fly commercially again.

Halting production will ease a severe squeeze on cash tied up in roughly 375 undelivered planes, but only at the risk of causing industrial problems when Boeing tries to return to normal, industry sources said.

Supply chains are already under strain due to record demand and abrupt changes in factory speed can cause snags.

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