PPRuNe Forums - Boeing announces MAX production has been stopped

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- - Boeing announces MAX production has been stopped (https://www.pprune.org/rumours-news/629047-boeing-announces-max-production-has-been-stopped.html)

Quote:

Originally Posted by BRE (Post 10668696)

Could they obtain a licence and start building A320s in Renton? I guess that depends on how hard it is to build the tooling. Or AB pays BA to build A320 to cover demand?

This kind of thing is not unheard of in the electronics and semiconductor industry, that powerful customers forcing a temporarily single source to work with the failing second source to meet market demand.

I'm afraid that way some know-hows would ineviably leak from A to B which is unacceptable. Though protected by patents etc. themselves, they would allow A's rival gain valuable insights. So, no way this might happen.

Quote:

Originally Posted by jantar99 (Post 10668723)

Which is why AB have allowed the plane to be built in China, right? And its not like most big maintenance shops service both anyway, and the maintenance info is for practical purposes public?

Why would any manufacturer allow a competitor to use its facilities under licence? When one is struggling don't feed it a bone!

Quote:

Originally Posted by krismiler (Post 10668548)

The MAX is like owning an old car which keeps requiring repairs

At least with an old car one knows what to fix and it can be used between repairs.

Quote:

Originally Posted by esscee (Post 10668762)

Why would any manufacturer allow a competitor to use its facilities under licence? When one is struggling don't feed it a bone!

Because they can't fill the demand and the whole airline industry has a problem. As I said, it happens in other industries. The most famous example is that AMD used to make 8086 microprocessors to fill demand Intel couldn't. Interestingly, they retained the licence which allowed them to later enter the market with their own designs.

What is the difference between the two announcements on the production line (halting vs stopping). Does stopping the production means contracts with supplies are cancelled, tooling removed or stopping is more formal than stopping?

Quote:

Originally Posted by OldnGrounded (Post 10668389)

The headline simply says what happened. The financial media are full of headlines equally or more alarming. Investor's Business Daily was running this:

"Boeing Dives to Crisis Low on 737 MAX Delay"

Bloomberg says:

"Boeing’s Max Ruined Christmas. Next Up, Summer."

IBD again:

"Boeing Stock Dives As 737 Max Return Slips Further; Rival Airbus Jet Gains"

Boeing news is genuinely bad. The share price, this evening, is not very far from its 52-week low. I don't think the headlines are particularly exaggerated.

Boeing notified the markets that significant news was coming and the markets instituted a "pending news" halt to stock trading. It’s a market requirement. Trading wasn’t halted because the stock was sliding - it was halted so Boeing could share news that was likely to significantly affect the stock price.

Perhaps the news media should endeavor to understand why trading was halted . . . Or just continue with sensational headlines.

Don’t any of you trade on the market? This is stuff any reasonably savvy investor should know. here’s the SEC’s explanation of trading halts including for pending news: https://www.sec.gov/fast-answers/ans...nghalthtm.html