Boeing considers production halt amidst the fast-spreading Coronavirus pandemic

Challenges for the Boeing Company (NYSE:BA) continue to rise amidst the Coronavirus pandemic. As per the sources, Boeing is currently considering suspending operations at its Washington and South-Carolina based factories to minimize the fast transmission of the flu-like virus. Boeing’s staunch competitor from Europe, Airbus, also resorted to a similar strategy only recently.

The largest U.S plane manufacturer is taking its time to evaluate the potential impact of the move on its supply chain before it divulges any further information regarding the timing or the probable duration for which the operations are to be suspended.

Boeing To Order Deep Clean At Its Twin-Aisle Factories

According to the sources, however, Boeing’s shut down is expected to span over a few days only in which the planemaker hopes to conduct a deep clean at its twin-aisle factories, following which, production is likely to resume.

A Boeing’s spokesman chose not to comment any further on the news at this stage.

The current count of Boeing’s employees in the Puget Sound area (Seattle) is 70,000. The company has so far declared 14 confirmed cases of Coronavirus with most of them contained in Everett hub located north of Seattle.

The reports of infection at Boeing, however, are fueling fear among the employees many of which have refused to work until the pandemic is under control. The rising pressure from Coronavirus also pushed the Boeing company into delaying hiring. Sources also warned that broad job cuts are also likely in the upcoming weeks.

Airbus Plans On Resuming Operations On March 23^rd

Owing to excessive flight cancelations and the ongoing ban on Boeing’s world-popular, fuel-efficient, 737 MAX jetliner, demand for aircraft spare parts and relevant services is slimming by the day, jeopardizing the financial performance of the Boeing’s suppliers.

Airbus, on the other hand, plans to resume operations at its French and Spanish factories on March 23^rd. Experts, however, anticipate a further extension on production halt as the virus situation is not yet any better. Even if operations are resumed and sustained, analysts expect both Airbus and Boeing to take a significant amount of time before output recovers back to the pre-virus level.

At the time of writing, Boeing is exchanging hands at around £81 per share in the stock market that translates to just over 70% decline in 2020 so far. Its performance in 2019 wasn’t reported any better either. Owing to the ongoing ban on Boeing’s 737 Max, the company could only post a 1% annual growth in the stock market last year.