The Boeing 737 MAX Could Have a New Problem — Not Enough Engines
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January 4, 2020 - by Al Root for barrons.com
Boeing (ticker: BA) management could have a new problem on their hands, beyond just getting the plane back in service: fewer engines to hang on the airframes. CFM International—the joint venture between General Electric (ticker: GE) and Safran (SAF.France)—is going to build more engines for Airbus (AIR.France) than for Boeing (BA) in 2020.
The CFM Leap engine powers both the A320 NEO and 737 MAX. Customers can also order an A320 NEO with a geared turbofan engine produced by United Technologies (UTX) subsidiary Pratt & Whitney. The Leap is the only engine option for MAX customers.
CFM will produce 58% Leap-A variants in 2020 and 42% Leap-B versions, according to The Wall Street Journal.
The "A," as investors might expect, stands for...
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