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piece of fuselage tore off an Alaska Airlines jet on Friday
following takeoff from Portland, Oregon, forcing pilots to turn
back.
Boeing competes with Airbus, which has expanded its market share
since two Boeing MAX crashes in 2018 and 2019 that killed nearly
350 people and led to the MAX's worldwide grounding for 20
months.
Airbus shares were up more than 1% early on Monday. The company
this week will announce that it delivered 735 planes last year,
beating Boeing to remain the world's largest planemaker for the
fifth year in a row, industry sources said.
Reuters last week reported that the number would reach the
mid-730s, beating the company's target of 720.
Airbus is also on course to beat industry records for gross and
net orders, industry sources said last month. Airbus has
declined any comment on its annual performance ahead of a
commercial update it will present on Jan 11.
AEROSPACE HIT
Boeing's Frankfurt shares pared early losses to stand 7% lower
by 0935 GMT.
Shares in its suppliers and customers could also take a hit as
many airlines grounded their MAX jets following Friday's
incident.
Spirit Aero shares were down 15.9% in U.S. pre-market trading.
Alaska Air shares fell 5% while United Airlines shares dropped
2.8%.
Jefferies said in a note that the latest Boeing incident could
slow aircraft production if manufacturing and installation
processes are subject to further regulatory probes.
"It highlights a history of quality escape problems,
particularly at Spirit (Aero). Quality escapes are not
acceptable in an industry in which single failures can have
serious consequences," Bernstein analysts said in a note.
Boeing CEO Dave Calhoun on Sunday said the firm's response to
the incident was its main focus right now as regulators carry
out an investigation.
The planemaker also plans to hold a company-wide webcast on
safety on Tuesday to address its response. It cancelled a
leadership summit for company vice presidents scheduled for
Monday and Tuesday.
(Reporting by Samuel Indyk, Joanna Plucinska, Abhijith G and Tim
Hepher; editing by Kirsten Donovan and Jason Neely)
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