Boeing said deliveries of its 737 Max jets would be delayed after a supplier used a “non-standard” process to install components.
Boeing shares sank on Friday after the company announced delays on a sizable number of deliveries for its 737 Max jet, the latest blow for the planemaker after years of crises including the Covid-19 pandemic and several deadly crashes.Copyright 2020 The Associated Press. All rights reservedShares of Boeing fell more than 5% during premarket trading on Friday after the company said it had halted deliveries on some of its 737 Max jets over a problem with parts from supplier Spirit AeroSystems.
Boeing said Spirit had used a “non-standard” process when installing components towards the rear of the planes that could lead jets to fall short of regulatory requirements. Boeing said it has notified the Federal Aviation Administration of the problem, which could date back as far as 2019, and is working to inspect jets and replace parts where necessary.
The company stressed there is “not an immediate safety” issue and said in-service fleets “can continue operating safely.” The problem is likely to affect a “significant number” of undelivered 737 Max jets in production and storage, Boeing said, and will probably cut deliveries in the “near-term.”Shares for Spirit AeroSystems Holdings were down more than 11% during premarket trading on Friday morning.The delivery delays for Boeing’s 737 Max will come as a blow to both Boeing and the airline industry as a whole.
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