Boeing halts test flights of new plane over engine issue

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The first delivery was expected to be this month. Boeing said it plans to stick to that schedule.

CFM International said it will conduct inspections to establish the number of affected engines.

CFM is the joint venture between United States firm General Electric and French-based Safran.

Boeing stated that the LEAP-1B engines were thoroughly inspected throughout more than 2,000 hours of testing, during which time the company did not experience any problems. Those engines contain discs from one of two suppliers.

"There will be a temporary disruption to the logistics which we hope to fix within a few weeks", said Andries, speaking at a factory outside Paris where it co-produces the engines with General Electric GE.N .

The smallest member of the updated 737 family, the MAX 8, was due to be delivered to Malindo Air this month, but that is now expected to be delayed.

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Boeing (BA), a Dow Jones industrial average component, announced a 737 Max deal for 20 planes, a day after flight tests were halted over engine concerns. That jet made its maiden test flight in April.

Boeing fell 1.2 percent to $183.18 at the close in NY, the second-biggest decline on the Dow Jones Industrial Average, after adjusting for the beginning of trading without the right to a dividend. In the meantime, production will continue using discs from other CFM suppliers, he said. It is the latest carrier that intends to use single-aisle planes to operate transatlantic routes, which are typically flown by wide-body planes in order to keep costs down. The jet is 14% more fuel efficient than its predecessor, primarily due to its new engines.

Jewell said that CFM's inspections last week found "some anomalies in the process" of manufacturing disks for the jet's turbine.

The problem, discovered in the forging process, could lead to cracking and engines from about 25 test and production planes have been sent to CFM facilities in the U.S. and France for testing.

The aerospace giant has received more than 3,700 orders for these jetliners. Buyers typically get significant discounts.