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 choice to droop aerospace’s largest manufacturing line exposes contrasts within the U.S.-dominated 737 MAX provide chain, severely straining some area of interest machine retailers whereas giving engine giants time to iron out their very own wrinkles.

The momentary 737 MAX manufacturing halt, the newest 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 business supply mentioned.

Wichita, Kansas-based Spirit has staffed its manufacturing facility with sufficient staff to take care of a pre-crisis construct price of 52 plane monthly and to allow a clean step-by-step eventual improve to 57 plane, the individual mentioned.

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



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