Airbus flies to record highs, TUI falls after latest Boeing blow

The logo of Airbus is pictured during the Airbus A350-1000 maiden flight event in Colomiers near Toulouse November 24, 2016. — Reuter pic
The logo of Airbus is pictured during the Airbus A350-1000 maiden flight event in Colomiers near Toulouse November 24, 2016. — Reuter pic

PARIS, Jan 22 — Airbus’ shares rose to record highs today, after its US arch rival Boeing warned of new issues with the Boeing 737 MAX plane, while customers and suppliers slumped after the latest blow from the US aerospace company.

Airbus was up by 1.5 per cent at 138.48 euros at 1005 GMT, the top performer on France’s benchmark CAC-40 index after scaling record highs in early deals.

In contrast, holiday company TUI’s London listed stock was down as much as 4.7 per cent — the lowest since September and the biggest faller on the FTSE 100.

Shares in suppliers, Britain’s Senior and France’s Safran which make the engine for the jet with General Electric, were lower.

Late on Tuesday, Boeing said it did not expect to win approval for the return of the 737 MAX to service until mid-year due to further potential developments in the certification process and regulatory scrutiny on its flight control system.

In December, TUI warned that if the 737 MAX was not back in service by May that could wipe off as much as €400 million (RM1.8 billion) from its annual earnings. — Reuters

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