Boeing Co.’s plan to cut its 737 jetliner production by 19% this year is expected to have negative spillover effects across the aerospace industry, from parts suppliers to engine makers and even airlines. The analyst said Boeing’s suppliers cannot dial down production overnight, and changes to aircraft production rates usually take 12-18 months to flow through the supply chain. “Accordingly we believe suppliers will not be able to accommodate any Boeing request,” Ciarmoli said. Several companies, including Spirit AeroSystems Holdings Inc. and Allegheny Technologies Inc., have said they will maintain their current production schedules. The airline has one of the largest exposure to 737 Max jets, and according to Raymond James analyst Savanthi Syth, service resumption may now take until the peak summer travel period.

Source: Ethiopian News April 12, 2019 12:45 UTC