Left Menu
Development News Edition

UPDATE 2-Airbus hits record highs, 737 MAX buyers fall on latest Boeing news


UPDATE 2-Airbus hits record highs, 737 MAX buyers fall on latest Boeing news
File photo Image Credit: Pixabay

Airbus' shares hit record highs on Wednesday after U.S. arch-rival Boeing warned of further delay in returning its grounded 737 MAX airliner to service, while Boeing customers and suppliers fell on the news.

Boeing said on Tuesday that it did not expect to win approval for the 737 MAX to return to service until mid-year. Airbus was up by 1.85% at 138.9 euros at 1215 GMT, the top performer on France's benchmark CAC-40 index after hitting a record high 139.32.

But shares in airlines waiting to fly the 737 MAX including TUI Group and Norwegian, fell. TUI shares fell 5% to their lowest level since September and led losers on London's FTSE 100. The delay means TUI will not have all the planes it hoped to have in time for the summer when it makes the bulk of its profits.

In December, TUI warned that if the 737 MAX was not back in service by May that could wipe off as much as 400 million euros ($444 million) from its annual earnings. Norwegian shares were down 1.9%. It said that it was in close dialogue with both Boeing and the authorities.

"We are continually taking steps to minimize any disruption to the journeys of our passengers during our summer 2020 program," a spokesman for Norwegian said. Shares also fell in Boeing suppliers, including France's Safran and Britain's Senior which make the engines for the 737 MAX with General Electric.

Boeing said that the delay was due to further potential developments in the certification process and regulatory scrutiny of its flight control system. The 737 MAX, Boeing's best-selling aircraft, was grounded last March following two crashes which claimed 346 lives.

British Airways parent firm IAG, which announced a non-binding order for 200 MAX jets last June in a rare piece of good news for Boeing since the grounding, is "still progressing with Boeing", Chief Financial Officer Steve Gunning told Reuters in Dublin on Wednesday. "I think we're still confident Boeing will get this back in the sky," Gunning said, adding that the 2024 delivery timeframe left IAG with some room for maneuver.

Another top 737 MAX buyer, Ryanair, declined to comment. Its chief marketing officer said this month the Irish budget carrier thought it was possible it might take delivery of up to 10 737 MAX aircraft by April. ($1 = 0.9017 euros)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Download The Devdiscourse News App for Latest News.


TRENDING

OPINION/BLOG/INTERVIEW

Future of Food: Technology fostering the road to global food security

Technological innovation can help address most of the pressing issues facing the world today including food security by enhancing productivity, improving financial services, managing resources, addressing environmental concerns, etc....

Conspiracy theories on COVID 19: Legislators, Scientists, and Journalists all joined the Caravan

Conspiracy theories are not new for virus epidemics. There have been conspiracy theories on HIV-AIDS, Polio Vaccines, Ebola Virus, and several other diseases as well. However, what makes the 2019 Novel Coronavirus different from others is ...

Now it’s a war, Uganda deploys army to combat locust swarms

Its for the first time after 1986, the locust swarms have attacked Uganda twice in a season. With the increasing number of countries of Africa under attack by locust swarms, the problem seems to have taken a regional paradigm. Its very diff...

Top 10 Fake News, Myths and Realities on 2019 Novel Coronavirus COVID 19

With nearly 1500 deaths by January 14 and around 65,000 infections in China, the Novel Coronavirus 2019 has become one of the worst health epidemics of the 21st Century. However, 8,573 people have been cured but the rumor mongers are a...

Videos

Latest News

France reports new confirmed case of coronavirus, tally now at 18

One more person has been infected with the coronavirus in France, putting the tally at 18 in the country, the French Health minister said on Wednesday.There is no epidemic in the country, just isolated cases, Olivier Veran said during a pre...

Mexican port denies cruise ship permission to dock over coronavirus fears

Mexican port authorities on Wednesday revoked permission for cruise ship MSC Meraviglia to disembark on the island of Cozumel over coronavirus fears, a port official said, after Jamaican and Grand Cayman authorities also said it could not s...

UPDATE 1-Assange complains he cannot follow U.S. extradition hearing

Julian Assange complained he was struggling to follow his extradition hearing on Wednesday as his legal team argued Britain should not send him to the United States because the charges against him were politically motivated. Assange, 48, fa...

Apple to open first retail store in India next year, Tim Cook says

Apple Inc will open its first physical retail store in India in 2021, Chief Executive Tim Cook said on Wednesday.Responding to a question from a shareholder at Apples annual shareholder meeting in Cupertino, California about the companys pl...

Give Feedback