ANALYSIS-Boeing 737 MAX freeze divides suppliers into haves and have-nots

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ANALYSIS-Boeing 737 MAX freeze divides suppliers into haves and have-nots

By Eric M. Johnson and Tim Hepher


By Eric M. Johnson and Tim Hepher

SEATTLE/PARIS Dec 18 (Reuters)Boeing Co’s BA.N determination to droop aerospace’s greatest manufacturing line exposes contrasts within the U.S.-dominated 737 MAX provide chain, severely straining some area of interest machine outlets whereas giving engine giants time to iron out their very own wrinkles.

The momentary 737 MAX manufacturing halt, the most recent fallout in a 9-month-old grounding disaster, has already kicked off powerful negotiations between Boeing and Spirit AeroSystems Holdings Inc SPR.N, Boeing’s largest 737 provider, one trade supply stated.

Wichita, Kansas-based Spirit has staffed its manufacturing unit with sufficient employees to keep up a pre-crisis construct charge of 52 plane monthly and to allow a clean step-by-step eventual enhance to 57 plane, the individual stated.

Now, furloughs in Kansas are probably if Boeing stops paying Spirit to construct and retailer fuselages at these charges, the individual stated, including that situation was probably as Boeing appears to be like to preserve money. A second provide chain supply agreed.



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