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Boeing's 737 deliveries up, shares dip on Lion Air concerns

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Boeing's 737 deliveries up, shares dip on Lion Air concerns

Boeing's 737 deliveries up, shares dip on Lion Air concerns
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Paulo Whitaker(Reuters)
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(Reuters) - Boeing Co <BA.N> reported higher October deliveries of its best-selling 737 aircraft on Tuesday, but the company's shares fell on concerns related to last month's deadly crash of a 737 MAX, the newest version of the jet, operated by Indonesia's Lion Air.

Indonesian investigators said on Monday more training was needed for 737 MAX pilots after discovering the situation believed to have faced the crew was not contained in the flight manual. U.S. pilots were also not aware of potential risks, two pilot unions told Reuters.

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Boeing shares were down about 2 percent to $350.09 in morning trade.

Investigators are preparing to publish their preliminary report on the crash on Nov. 28 or Nov. 29, one month after the Lion Air jet dived into the Java Sea, killing all 189 on board.

The accident is the first to be reported involving the widely sold Boeing 737 MAX, an updated, more fuel-efficient version of the manufacturer's workhorse single-aisle jet.

Until now, public attention has focussed mainly on potential maintenance problems including a faulty sensor for the 'angle of attack,' a vital piece of data needed to help the aircraft fly at the right angle to the currents of air and prevent a stall.

The investigation's focus appears to be expanding to the clarity of U.S.-approved procedures to help pilots prevent the 737 MAX over-reacting to such a data loss, and methods for training them.

On Tuesday, the world's largest planemaker said it delivered 43 of its 737 aircraft last month, up from 37 a year ago, helped by a booming global market. That puts it on track for another year of record deliveries as it battles European rival Airbus SE <AIR.PA>.

Investors and analysts watch the number of planes Boeing turns over to airlines and leasing firms as customers pay the bulk of the money for new planes on delivery.

The number of 737 deliveries was down slightly from the 61 delivered in September due to lingering supplier problems, flagged by Boeing Chief Financial Officer Greg Smith last week.

Boeing delivered a total of 57 aircraft in October, up from a 56 a year ago.

The Chicago-based company's total deliveries for the first 10 months of 2018 now stand at 625, up from 610 in the same period a year ago.

The company aims to deliver 810 to 815 planes in 2018, which would keep it ahead of Airbus, which delivered 503 aircraft through September this year.

(Reporting by Sanjana Shivdas in Bengaluru and Eric M. Johnson in Seattle; Editing by Saumyadeb Chakrabarty and Bill Rigby)

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