Boeing is expected to continue burning cash despite pausing production of its 737 MAX jet, as it will leave its workforce intact and likely provide support to suppliers, analysts said. Some estimated the cash burn at around US$1b a month. The airframer said Monday it would suspend production in January, its biggest assembly-line halt in more than 20 years, as repercussions from 2 deadly crashes of the now-grounded aircraft drag into 2020. Boeing, which builds the 737 south of Seattle, said it would not lay off any of the roughly 12,000 employees there during the production freeze. The worldwide grounding in March forced the company to cut its MAX production to 42 per month from 52 and has already cost more than $9b so far. <br/>
general
As Boeing halts production of its beleaguered 737 Max, Airbus is grappling with a very different problem: speeding output of its rival narrow-body. So-called “stretch” versions of the A320neo jet have sparked an order frenzy as airlines snap them up to replace costly twin-aisle planes on longer routes or cram in seats on shorter legs. But to achieve that flexibility Airbus has had to offer a wide range of cabin layouts that’s made assembly far more complex. Slower build rates on the top-priced A321 variant mean that the European company needs to lift deliveries 75% this month compared with November to meet full-year production targets. It’s a vital challenge for Airbus -- not only to consolidate its advantage over a flailing Boeing, but also to maximise returns from its most expensive narrow-bodies. <br/>
Boeing’s decision to suspend production of its 737 Max aircraft has ricocheted around the world, affecting hundreds of suppliers making critical parts for the ill-fated passenger jet. It is the latest blow to the US aircraft maker, but the impact could be even more severe for suppliers, which spread from its Seattle base to manufacturing hubs thousands of miles away. Boeing’s statement after US markets closed Monday gave no details on whether it planned to share the pain with its supply chain by continuing to let inventory pile up while work on the Max is suspended. There is little precedent for Boeing’s suspension of production, said Paul Adams, head of aerospace at the management consultancy Vendigital, and the fallout on suppliers would be significant. <br/>
Rolls-Royce recently told several long-time suppliers that it was cutting expected orders at short notice. The news stunned the companies involved. Plants that had been set aside for Rolls-Royce would now lie idle. While the orders had not been contractually agreed, such a drastic reduction in the so-called schedule — used by suppliers to plan capacity — was unusual and potentially “devastating for the supply chain”, according to 2 industry executives familiar with the situation. “It was catastrophic,” said one. “The supply chain does not trust them anymore.” Over the past 2 years, the aero-engine maker has struggled to contain spiralling costs from durability problems on the Trent 1000 that powers Boeing’s popular 787 Dreamliner. Rating agencies have downgraded the company to just above junk. <br/>
The State’s tourism authorities fear an increase in so-called “flight shaming” could threaten Ireland’s position as a European travel hotspot. Niall Gibbons, the CE of Tourism Ireland, which markets the whole island abroad, said the organisation has picked up “noise” in mainland Europe around the issue. He said the organisation’s “ear to the ground” has detected momentum behind flight-shaming, where people are criticised for travelling by air for environmental reasons. He said proposed green taxes on air travel are another threat. He said it would be “concerning” for Ireland if any attempts to burden air travel carried into a major Irish tourism source market, such as Germany. About 90% of all inbound tourists to Ireland arrive by air. <br/>