FAA, MAX discussed on Morning Edition

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The FAA up would have proved the return of the Max to service imminently it since it's not happening and maybe it's an effort to show an independent streak of the agency after the agency was accused of being too cozy with the company but FAA administrator Stephen Dixon told Wallenberg that at the FAA sets the time line not blowing in the agency safety experts will take all the time they need to get its analysis and testing of Boeing's fixes for the plane dawned bright and won't rush the plane into a return to service I'm hearing that means that the plane will likely remain grounded until least February or March and it now appears Boeing's getting got the message well how much of it also might be the company just realizing how much money they were losing if they were continuing to make these planes and then not selling them yeah that's the second hard reality Boeing is facing you've been third burning through cash cash at the end of significant rain according to some estimates about two billion dollars a month the company did slow production a little bit back in April reducing the number of planes produced from fifty two a month to forty two but now it has about four hundred finished Max gets just sitting in storage it cannot deliver them to customers and cannot get final payment Richard have a Lafayette is the aerospace industry analyst for the teal group it's been really painful recalling the been maintaining production paying suppliers to build fifty two per month while they build it forty two per month and not bringing in revenue this is very painful balance sheet perspective you know it's important to know David just how big of a deal this is for Boeing seven thirty seven Max is the best selling commercial airline in airliner in the company's history it had five thousand orders for the plane before it was grounded and it's a very profitable was anyway a very profitable partner up product in a huge part of the company's future is tied to this point okay painful for Boeing what about the people who work there David I mean this plan is a symbol to plant in Renton Washington outside Seattle twelve thousand people work there how are they gonna be hit by this well the Boeing is saying that there will be no furloughs and no employee Laos at least at this time the statement announcing the decision to suspend production says the company plans to have affected workers continue either seven thirty seven related worker bee temporarily signed other Boeing factories in the area but there still is a fair amount of the anxiety in and around the plant we had actually growth of our member station K. and K. acts ask around about the impact she talked with Veronica Medina whose family owns a Mexican restaurant called to raros is strip mall called the landing right across the street from the huge Boeing plant what is the vin right here at the landing it's very significant we get a lot of lunch crowds we get you know Renton in general very dependent on Boeing's well being but I media says even if the employees aren't laid off if they are going in and out of that factory across the street her business may suffer what is this going to be a head I don't know how big that I think as a city as a business owner I think we will feel that what about the economy and with the economy is going to feel here I mean you've got to have the supply chain that that feeds this big factor in there could be a lot of sectors let companies it could be that could be affected yeah I mean there there's a lot of companies who did that could feel this more deeply not so much in Seattle but in places like Wichita Kansas where supplier spirit aerosystems makes the fuselage and other parts for the seven thirty seven Max and any others you scattered out just around the country but around the world the suppliers Boeing may do something to help soften the blow for them but many of these companies may be forced to furlough or lay off workers themselves it's just not clear how significant that impact maybe and here's David Schaper in Chicago thanks David my pleasure do the many nations were fake news stories on social media have influenced elections include Brazil Brazilian voters faced a tsunami of fake news before the election that brought far right president chair balls and are out of power this year now balls in our was at the center of a new controversy over the covert use of cyberspace for politics years and years from a previous in.

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