Stocks of #Boeing and its suppliers fall on reports of 737 MAX production halt
18:10, Wednesday, 22 January, 2020
The year 2019 has been pretty damaging for U.S. aircraft manufacturing giant, Boeing BA, thanks to massive commercial aircraft order cancellations and dismal commercial deliveries. The grounding of 737 Max jets in March 2019 following two crashes claiming 346 lives wreaked havoc.
This opened up substantial scope for Boeing’s arch rival, Airbus EADSY in the commercial jet space. Recently, the European plane maker seized the title of the world’s largest plane maker for the first time in eight years.
Per a report by CNBC, the aerospace giant lost orders for 87 aircraft at the end of 2019, which implies more cancellations than new orders. There was an approximate 90% drop in orders for 737 jets during the year, per CNN. The grounding combined with other issues also led to a decline in sales of other aircraft models. Naturally, the other models saw a 29% drop in new orders.