Update 2: The Nordic budget airline Primera Air has agreed to buy eight of Boeing's new 737 Max aircraft for more than US$950 million at list prices, and has an option to buy an additional four planes, the companies said on Thursday.
Primera said it wanted the new planes as it plans to start offering transatlantic flights, the latest low-cost European carrier to do so after Norwegian Air, Eurowings and British Airways’ Level.
The order also includes the sale of another eight 737 Max planes to Air Lease Corp, which will lease them in turn to Primera – bringing the total order to 20 planes. The companies did not disclose the value of the total order.
Update 1: The head of Safran's aircraft engines division said his company aimed to fix the Boeing plane engine glitch within weeks.
Safran discovered a quality problem in turbine disks provided by one of two suppliers, and it is not related to the part’s design, said the Safran Aircraft Engines chief executive Olivier Andries.
“There will be a temporary disruption to the logistics which we hope to fix within a few weeks,” said Mr Andries, speaking at a factory outside Paris where it co-produces the engines with General Electric.
Safran will fly part of the engines it has already delivered to Boeing back from the United States to its French factory, inspect them and return them to Boeing. It will take about a week for each engine and Safran is putting in place resources to handle several at once, Mr Andries said.
Boeing said it would temporarily suspend flights of its new 737 Max jetliner because of a potential manufacturing flaw in the engines, marring the commercial debut for the fastest-selling plane in company history.
The jet maker and its engine supplier, a venture of General Electric and Safran, are rushing to understand the problem ahead of the jet’s commercial debut, which remains scheduled for later this month. Boeing said a possible quality defect in the Leap engine arose during inspections and did not affect flight testing of the upgraded 737.
The grounding added to concerns about the strain on suppliers as the US manufacturer and European rival Airbus unveil new aircraft models while boosting single-aisle production to record levels. Boeing is counting on a smooth roll-out of the 737 Max, the newest version of a plane that is the company’s largest source of profit, as it seeks to boost cash flow.
“Investors are acutely focused on 737 Max ramp risk – and the impact on cash,” said Robert Stallard, an analyst at Vertical Research Partners, said in a note to clients.
Boeing fell 1.2 per cent to $183.18 at the close in New York. GE dropped 0.8 per cent to $28.70.
The 737 Max has accumulated 3,714 orders before its commercial debut. The latest 737 model is slated to be handed over this month to Indonesia’s Malindo Air. Other major customers with deliveries this year include Southwest Airlines, Norwegian Air Shuttle and American Airlines Group.
Airbus said it is continuing normal flight operations on aircraft powered by Leap engines as the European plane maker uses a different version of the engine from those supplied to Boeing.
Asked whether Airbus continued to carry out development test flights and pre-delivery test flights on A320neo-family aircraft powered by the Leap-1A engine, made by GE-Safran venture CFM International, a spokesman for the jet maker said: “Yes we are”.
GE said Safran had found the problem in a disc used in the low-pressure turbine at the rear of the Leap-1B engine used by Boeing. Safran was not immediately available for comment.
* Agencies
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