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Boeing pauses deliveries of the 737 Max after FAA grounds aircraft following fatal crashes

Key Points
  • Boeing has paused delivery of 737 Max airplanes due to the temporary grounding, the company announced Thursday.
  • This comes after the FAA grounded all Boeing 737 Max jets in the U.S. on Wednesday.
  • Boeing stock is down more than 11 percent this week.
The tail and a next generation winglet of a A Boeing 737 MAX 8 are pictured at Boeing Field after its its first flight on January 29, 2016 in Seattle, Washington.
Stephen Brashear | Getty Images

Boeing has paused delivery of 737 Max airplanes due to the temporary grounding by the Federal Aviation Administration, the company announced Thursday.

"We continue to build 737 Max airplanes, while assessing how the situation, including potential capacity constraints, will impact our production system," the company said.

This comes after the Trump administration joined dozens of countries around the world in grounding all Boeing 737 Max jets in the U.S. on Wednesday, citing links between two fatal crashes.

A software fix in the plane could take as long as six months, a Bank of America analyst Ronald Epstein said Thursday.

"Once Boeing identifies the issue on the 737 Max, the most likely scenario, in our view, is that the company will take about 3-6 months to come up with a fix and certify the fix," Epstein said in a note.

Boeing's stock has been volatile on the news, and is down more than 11 percent for the week.

Why one Jefferies defense analyst rates Boeing a buy despite 737 Max 8 groundings
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Key Points
  • Investigators have found a piece of a stabilizer in the wreckage of an Ethiopian jet with the trim set in an unusual position similar to that of a Lion Air plane that crashed last year.
  • The FAA said fresh information from the wreckage of the Ethiopian crash and newly refined data about its flight path indicated some similarities with the Lion Air disaster.
  • Both accidents involved Boeing 737 MAX planes.