*** Stocks of Boeing fall on reports of 737 MAX production halt | THE DAILY TRIBUNE | KINGDOM OF BAHRAIN

Stocks of Boeing fall on reports of 737 MAX production halt

Shares of Boeing and its suppliers fell on Monday after reports that the US planemaker could temporarily halt production of 737 MAX aircraft, potentially adding to billions of dollars in costs, as its return to service is pushed to 2020.

The best-selling Boeing plane has been grounded since March after two fatal crashes in Indonesia and Ethiopia killed 346 people, costing the plane manufacturer more than $9 billion in charges so far.

Boeing’s shares fell 4% in premarket trading to $328.13, while Spirit AeroSystems Holdings Inc fell 3.4%. Spirit is Boeing’s biggest supplier and makes the MAX fuselage along with other parts such as pylons.

Analysts say a suspension of MAX production would likely result in significant additional charges for Boeing as well as it main suppliers, who have been shielded from a financial hit as they have continued to sell parts for the jet at a rate of up to 52 units per month, even as the planemaker has cut its own production to 42 per month.

“We would highlight Spirit AeroSystems, Safran SA and Senior Plc as names that could potentially experience greater disruption impacts if production is indeed slowed further or halted,” Berenberg analyst Andrew Gollan said.