Boeing Co (NYSE:BA) announced an indefinite suspension of production operations at its Seattle area sites following the coronavirus pandemic.
Employees who have been supporting essential site and services work have been asked to report to their assigned shifts, and the company will continue to implement added health and safety measures at its facilities.
Beginning March 25, Boeing began a two-week suspension of Seattle-area production operations in response to the coronavirus pandemic.
The latest developments are just part of a string of misfortunes to hit the airplane industry and Boeing in particular.
Airplane leasing giant Avolon said Friday it was cancelling orders for 75 Boeing 737 MAX planes scheduled to be delivered by 2023, part of a broader adjustment of its order book due to disruptions caused by the COVID-19 pandemic.
The move, though not entirely unexpected, is a setback for Boeing in its effort to get the once-promising 737 MAX program airborne. And it could be a sign of things to come for Boeing and archrival Airbus as airlines and leasing companies reassess their need for new planes following an unprecedented global slump in travel.
The 737 MAX has been grounded for more than a year following a pair of fatal accidents, but the company is optimistic it will be cleared to return to the skies by mid-year.
The bull case for Boeing is tied to the plane's more than 4,000-unit-strong order book, but as Avolon suggests, that order book is likely to come under pressure in the months to come.
Shares in BA gained altitude of $8.23, or 6.6%, to $132.45.
