By Dhirendra Tripathi
Investing.com – Boeing (NYSE:BA) shares fell more than 2% in Tuesday’s session on reports its rival Airbus (PA:AIR) has asked suppliers to be ready for a higher output next year even as the U.S. company struggles to fix an electrical issue with its 737 MAX planes.
The electrical issue has kept Boeing’s popular 737 MAX planes suspended for an extended period.
A Reuters report said Airbus is asking key suppliers to get ready for a further 18% increase in A320-family jet output by the end of 2022, on top of existing targets for this year.
The European manufacturer’s A320 competes with Boeing's 737 MAX.
Two accidents in 2018 and 2019 forced authorities to ground the narrow body 737 MAX, which was at the time Boeing's biggest money maker in a booming market for narrow body planes. The 20-month safety ban was lifted in November after the company made the fixes.
But a separate electrical issue soon after led the manufacturer to halt deliveries of the planes with an advisory to its clients to not fly those in their fleet.