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Boeing (BA) has not revealed any potential problems with the flight control system of its new Boeing 737 Max before a fatal crash in Indonesia, according to a report. Boeing shares fell, testing a key level of long-term support.
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The Boeing 737 Max 8 and Max 9 models' automated anti-stall system could unexpectedly lower the nose and no longer lift.
The pilots have not been informed of the new Boeing 737 Max system or its problems, according to a report released Monday by the Wall Street Journal.
An official from the Federal Aviation Administration told the Journal that the new system was not highlighted in the training manuals.
The aerospace giant only issued this warning about the anti-stall system after the Lion Air crash earlier this month, when 189 people were killed.
Boeing Stock goes down
Boeing shares fell 1.6% to 351.42 on the stock market today, slightly above the 200-day mark after falling to 342.04. This weighs on the price-weighted Dow Jones industrial average. Boeing shares fell 3.3% on Monday, which is below the 50-day moving average.
AirbusUS-listed equities (EADSY) rose 2%.
Boeing 737 Max Sales
The company has an order book of more than 4,000 aircraft for the Boeing 737 Max narrow body series. Boeing marketed the Max 8 model to airlines stating that pilots would not need additional simulator training, government officials told the newspapers.
A Boeing official told the newspaper that the company did not want to overload the pilots with too much technical information about the system.
Boeing would now work on a hotfix for the flight control system.
Richard Aboulafia, an aerospace analyst at Teal Group, said the problem seemed relatively easy to solve and that it was not a major hardware problem.
Boeing could suffer a "reputation hit," he said. "But in terms of the business impact, you will not see much."
Boeing October Deliveries
Boeing delivered 43,737 units last month, up from 37 a year ago. But it was down 61 in September. Boeing delivered 12,787 Dreamliners for a total of 57 commercial aircraft delivered in October. This is from a 56 in 2017.
On November 7, Boeing CFO Greg Smith said at the Baird Global Industrial Conference that October shipments would be below normal with shipments surging in November and December.
The aerospace giant had problems with the fuselage supplier Spirit AeroSystems (SPR) and engine manufacturer General Electric (GE).
"We had problems that improved and we continued improving the fuselage side, especially with Spirit," Smith said.
"GE is on the road to recovery, but not fully recovered, and we are not expecting it until the end of the year." Today, the focus is on GE and GE. its supply chain, "he continued.
Boeing 737 production is expected to reach 57 per month next year, compared to 52 per month in the fourth quarter. The Dow Jones aerospace giant plans an even faster pace in 2020.
The Spirit Aero stock rose 0.9%. GE's stock rose 5.5% after falling 21% in November
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