Boeing | Fundamental Analysis

Boeing | Fundamental Analysis

Written by: PaxForex analytics dept - Tuesday, 07 April 2020 0 comments

Boeing Co. said yesterday it will suspend production of 787 aircraft at its departments in South Carolina amid the pandemic. The statement came shortly after the state government issued an order on Monday ordering residents to stay home except for urgent travel. Boeing production will be suspended until further orders are issued on Wednesday. On Sunday, the largest U.S. aircraft manufacturer extended indefinitely the halt of production at its facilities in Washington state. Reuters reported Thursday that aircraft manufacturers, including Boeing and Airbus SE, are considering a sharp reduction in wide-body aircraft production amid falling demand for the industry's largest jetliners. Supplies of long-haul aircraft, such as the Boeing 777 or 787 and the Airbus A350 or A330, have been particularly hard hit, as many companies have delayed payments. On Monday, Airbus said it would momentarily interrupt production at its A220/A320 plant in Alabama due to "high stock levels at sites and from various governments.

Boeing production in Alabama will be suspended from now on until April 29.

Boeing announced March 23 that it would stop production at its two-pass jetliner plant in Washington State as an interim measure to help combat an eruption of respiratory virus. Production was supposed to resume earlier this week. Boeing said a few days ago that 135 of its 160,000 employees around the world passed the coronavirus test. Boeing airlines postponed production and testing of the new aircraft, which exacerbated the crisis that emerged after two deadly crashes, the Boeing 737 MAX went into disrepair within a year. Boeing suspended the production of the 737 in January. Last month, Boeing asked the U.S. government and other U.S. aerospace equipment manufacturers to provide at least $60 billion in guarantees to help the affected industry confront coronavirus-related cash outflows. Last week Boeing said it will suspend production at its Ridley, Pennsylvania facility until April 20, due to the pandemic outbreak. The facility includes production facilities for military rotary-wing machines, including the H-47 Chinook, V-22 Osprey, and MH-139A Grey Wolf. Boeing said on Monday that employees who cannot work from home will get 10 working days paid leave after the suspension.