Boeing first-quarter orders halved amid 737 Max grounding

Apr 12, 2019, 02:25
Boeing first-quarter orders halved amid 737 Max grounding

The FAA said last week it was forming an global team to review the safety of the aircraft, grounded worldwide following two deadly crashes - in Indonesia in October and in Ethiopia last month - that killed almost 350 people.

The filing at a Chicago federal court alleges that the aerospace company defrauded investors over the safety features of Boeing's 737 Max aircraft which was involved in two fatal crashes: one in Ethiopia last month and another in Indonesia a year ago.

The airline now expects a key measure of total revenue to be flat or grow by 1% during the first quarter, compared to previous forecasts of a 2% increase.

The 737 Max has been grounded globally, and orders for the aircraft have dried following the incidents.

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The company said yesterday that it had delivered 149 commercial aircraft in the first three months of the year, down from 238 in the preceding three months and 184 in the first quarter of 2018.

Boeing suspended Max deliveries in mid-March after regulators grounded the planes.

Though the market is less sure of Spirit AeroSystems' future, the maker of shipsets for the MAX 8 released a statement Friday confirming it would continue deliveries at the 52 planes-per-month pace, but will store them at Spirit facilities.

China has chose to accept an invitation to join the U.S. Federal Aviation Administration's (FAA) review panel on theBoeing 737 MAX, an official at the Chinese aviation regulator said on Tuesday.

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Boeing said last week it would cut monthly 737 MAX production by 20 percent starting mid-April, without giving an end-date. The suit is the criticism at a number of claims from Boeing after two 737 Max crashes in just seven months.

Boeing is working on a fix to the anti-stall system, known as MCAS, in 737 Max 8 planes which preliminary reports suggest caused both the Lion Air and the Ethiopian Airlines flights to repeatedly nosedive.

Boeing's shares, which have lost about 13% since the crash, were down 1.66 percent at $368.32 in afternoon trading.

The Chicago-based airplane maker had been ramping up Max deliveries, with the planes accounting for almost half of the deliveries in the last few months.

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