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Experts React To Boeing's Confirmation Of 737 Max Production Halt

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Experts React To Boeing's Confirmation Of 737 Max Production Halt

Aircraft maker Boeing Co (NYSE: BA) confirmed Monday that it will temporarily pause production of its 737 Max jet. Investors may want to prepare for the possibility that production will never resume, according to Quilvest Wealth Management's Bob Parker.

Boeing's Other Problems

Boeing's decision to simply pause production doesn't eliminate other problems, including a huge inventory of finished planes it needs to sell, Parker said Tuesday on CNBC's "Squawk Box Europe."

It's too early to say the 737 Max problems are now behind Boeing, he said. 

It's unclear when or even if Boeing will resume production of the 737 Max, Parker said.

Pilot Union: Let Process Play Out

Dennis Tajer, a pilot and representative for the Allied Pilots Association, said on CNBC's "Squawk Box" that the union is supporting the Federal Aviation Authority's process of "testing the human factors" of the grounded plane.

The FAA is paying close attention to how pilots react to new changes in the MCAS flight control software.

The process has "a lot more to go," and the union has accepted that any timelines should be ignored, he said.

"We aren't going to let the tick of the clock guide this," Tajer said. "We are just focused on making sure it is done right and the pilots are ready."

Exec Shakeup May Not Be The Answer

The media may be guilty of assuming by default a management shakeup at any cost is the right response, crisis management consultant Eric Dezenhall said on "Squawk Box."

Absent any sort of "provable negligence," replacing a CEO is not always constructive, he said. 

In response, Tajer said there has been a "crushing of the trust relationship" with Boeing CEO Dennis Muilenburg. But the pilot union is focused on "rebuilding that with facts and not quippy slogans," he said. 

Boeing shares were trading down 1.54% at $322.10 at the time of publication. 

Related Links:

Breaking: Boeing Halts 737 MAX Production As FAA Certification Drags Out

Boeing Analyst Says 737 Max Production Halt A 'Nuclear Option'

Photo by airbus777 via Wikimedia

Posted-In: 737 MAX aircraft Bob Parker CNBCNews Travel Media General Best of Benzinga

 

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