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| Boeing warns of 737 Max delays over quality problem | Boeing warns of 737 Max delays over quality problem |
| (about 2 hours later) | |
| Boeing 737 Max display at Farnborough Airshow | Boeing 737 Max display at Farnborough Airshow |
| Boeing shares have tumbled more than 6% after the US plane-maker disclosed a manufacturing issue affecting its 737 Max planes. | Boeing shares have tumbled more than 6% after the US plane-maker disclosed a manufacturing issue affecting its 737 Max planes. |
| The aviation giant said a supplier had revealed that the installation of fittings on the rear of the planes did not follow the standard. | The aviation giant said a supplier had revealed that the installation of fittings on the rear of the planes did not follow the standard. |
| Boeing said the problem was not an "immediate safety of flight issue". | Boeing said the problem was not an "immediate safety of flight issue". |
| But it warned it could lead to delivery delays. | But it warned it could lead to delivery delays. |
| "We regret the impact that this issue will have on affected customers and are in contact with them concerning their delivery schedule," the company said in a statement. | "We regret the impact that this issue will have on affected customers and are in contact with them concerning their delivery schedule," the company said in a statement. |
| The latest problem comes as Boeing has been under intense scrutiny since two accidents in 2018 and 2019 involving its 737 Max planes killed 346 people. | The latest problem comes as Boeing has been under intense scrutiny since two accidents in 2018 and 2019 involving its 737 Max planes killed 346 people. |
| Authorities said the accidents were triggered by design flaws in its flight control software. Boeing ultimately agreed a $2.5bn settlement with US authorities, who had accused the firm of concealing information from regulators about updates to the system. | Authorities said the accidents were triggered by design flaws in its flight control software. Boeing ultimately agreed a $2.5bn settlement with US authorities, who had accused the firm of concealing information from regulators about updates to the system. |
| Thomas Hayes, chairman and managing member at Great Hill, said investors may be over-reacting to the current issue. | Thomas Hayes, chairman and managing member at Great Hill, said investors may be over-reacting to the current issue. |
| Shares in Spirit Aerosystems, Boeing's supplier, also plunged more than 20% on Friday, following the disclosure. | Shares in Spirit Aerosystems, Boeing's supplier, also plunged more than 20% on Friday, following the disclosure. |
| But, he added, "I can understand why it's a shoot first and ask questions later because Boeing has impaired their trust with investors over the constant and repeated errors over the last few years." | But, he added, "I can understand why it's a shoot first and ask questions later because Boeing has impaired their trust with investors over the constant and repeated errors over the last few years." |
| Boeing's 737 Max was grounded for more than a year following the accidents. | Boeing's 737 Max was grounded for more than a year following the accidents. |
| The company has also faced a series of supply issues as it tries to emerge from the cloud cast by that scandal and ramp up production. | The company has also faced a series of supply issues as it tries to emerge from the cloud cast by that scandal and ramp up production. |
| In February, the firm was forced to halt deliveries of its widebody 787 Dreamliner due to a problem with its data analysis. US transportation regulators cleared Boeing to resume deliveries last month. | |
| Boeing said a "significant number" of undelivered jets in production and in storage were affected by the new issue, which affects 737 Max family of airplanes, including the Max 7, Max 8 and Max 8200 airplanes, in addition to is P-8 Poseidon maritime surveillance aircraft. Some planes involved are already in service. | Boeing said a "significant number" of undelivered jets in production and in storage were affected by the new issue, which affects 737 Max family of airplanes, including the Max 7, Max 8 and Max 8200 airplanes, in addition to is P-8 Poseidon maritime surveillance aircraft. Some planes involved are already in service. |
| The company said it was working with regulators to conduct inspections and replace fittings "where necessary". | The company said it was working with regulators to conduct inspections and replace fittings "where necessary". |
| "This is not an immediate safety of flight issue and the in-service fleet can continue operating safely," the company said. | "This is not an immediate safety of flight issue and the in-service fleet can continue operating safely," the company said. |
| Delivery delays from Boeing could worsen problems at airlines, which have have been scrambling to upgrade their fleets as demand for air travel soars. | Delivery delays from Boeing could worsen problems at airlines, which have have been scrambling to upgrade their fleets as demand for air travel soars. |
| Southwest Airlines, one of Boeing's big customers, said it expected its orders to be delayed by the new issue, while United Airlines said it did not expect to be affected. | Southwest Airlines, one of Boeing's big customers, said it expected its orders to be delayed by the new issue, while United Airlines said it did not expect to be affected. |
| American Airlines said it was still working to understand the impact. | American Airlines said it was still working to understand the impact. |
| You may also be interested in: | You may also be interested in: |
| Last landing for BA Boeing 747 plane | Last landing for BA Boeing 747 plane |
| Last landing for BA Boeing 747 plane | Last landing for BA Boeing 747 plane |
| Related Topics | Related Topics |
| Boeing | Boeing |
| Aviation safety | Aviation safety |
| Aerospace | Aerospace |
| Air travel | Air travel |