GE shares also hit by Boeing 737 MAX engine problems

|By:, SA News Editor

General Electric (GE -0.8%) shares also were dinged in today's trade by Boeing's (NYSE:BA) halt of 737 MAX test flights because of an engine problem, as the plane is powered by LEAP engines made by CFM International, a 50/50 joint venture between GE and France's Safran (OTCPK:SAFRF, OTCPK:SAFRY).

A GE spokesperson says Safran found a quality problem in a disc used in the low-pressure turbine at the rear of the engine and notified Boeing over the weekend, and the disc had not been installed in an engine, but the discovery prompted Boeing to halt flights until engines could be inspected.

Airbus (OTCPK:EADSF, OTCPK:EADSY) says it is continuing normal flight operations on aircraft powered by the LEAP engines.

Declining comment so far is American Airlines (NASDAQ:AAL), which has 100 737 MAX jets on order.

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