Boeing reaches deal with 737 MAX engine suppliers
Boeing has agreed to cover payments for jet engines made for its grounded 737 MAX, easing the burden of the production delay on suppliers General Electric and Safran. The MAX jet is powered by LEAP-1B engines made by CFM, a joint venture of the two companies. Executives at Safran disclosed the Boeing agreement, reached this week, during the company’s earnings call Thursday. “All the engines which are going to be delivered in 2020 will be fully paid, net paid,” said Safran CE Philippe Petitcolin. He also said Boeing will cover payments for engines that were delivered in 2019, many of which have been stuck on MAX aircraft that Boeing assembled but cannot deliver. Normally, CFM gets paid as the engines are produced but doesn’t get its final payment until the plane is delivered to an airline. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-02-28/general/boeing-reaches-deal-with-737-max-engine-suppliers
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Boeing reaches deal with 737 MAX engine suppliers
Boeing has agreed to cover payments for jet engines made for its grounded 737 MAX, easing the burden of the production delay on suppliers General Electric and Safran. The MAX jet is powered by LEAP-1B engines made by CFM, a joint venture of the two companies. Executives at Safran disclosed the Boeing agreement, reached this week, during the company’s earnings call Thursday. “All the engines which are going to be delivered in 2020 will be fully paid, net paid,” said Safran CE Philippe Petitcolin. He also said Boeing will cover payments for engines that were delivered in 2019, many of which have been stuck on MAX aircraft that Boeing assembled but cannot deliver. Normally, CFM gets paid as the engines are produced but doesn’t get its final payment until the plane is delivered to an airline. <br/>
