Boeing shares dive on latest MAX issue
Source: AFP
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Shares of Boeing tumbled Friday after the company disclosed a problem with a supplier part on the 737 MAX that is expected to slow deliveries of new jets.
Boeing was notified by a supplier of the latest MAX issue, which is expected to affect a "significant" number of undelivered planes, but not those that have already been delivered, Boeing said.
Shares sank 5.1 percent to $202.64, pushing the Dow index into negative territory after midday.
A Boeing supplier told the aviation giant that "a non-standard manufacturing process" was used on two fittings on the fuselage on four 737 models, the company said, adding that the problem does not pose "an immediate safety of flight issue."
"We have notified the Federal Aviation Administration of the issue and are working to conduct inspections and replace the non-conforming fittings where necessary," said Boeing in an email.
"We expect lower near-term 737 MAX deliveries while this required work is completed."
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Spirit AeroSystems, a major supplier on the MAX, said it notified Boeing of a "quality issue" on the fuselage.
"We have processes in place to address these of types of production issues upon identification, which we are following," the company told AFP. "Spirit is working to develop an inspection and repair for the affected fuselages."
Boeing resumed deliveries of the MAX after the FAA cleared it to return to service in November 2020 following a 20-month global grounding after two deadly crashes.
However, production and quality control problems with the MAX and the 787 Dreamliner have hindered the company's ability to match its pre-pandemic momentum.
Source: AFP
