Boeing faced years of delays before successfully introducing its 787-series aircraft, but made an on-time delivery of its first 737 MAX aircraft to Lion Mentari Airlines this week. Boeing encountered some problems with 737 MAX engines last week; however, they moved forward with the delivery schedule as not all aircraft were impacted by the issue.
On Wednesday, Boeing announced it has temporarily paused test flights for the new 737 MAX aircraft after discovering an engine issue. The announcement came just days before Boeing planned to deliver its first 737 MAX aircraft to Malaysian carrier, Malindo Air.
After the GFY17 budget cleared the house on Wednesday with a 309 to 118 vote, the U.S. Senate on Thursday voted 79 to 18 on a $1.1 trillion spending bill to fund the government through September; the bill now goes to President Trump’s desk for final approval. Of the total $1.1 trillion, the measure contains $593 billion for defense spending, an increase of ~$20 billion over GFY16 enacted levels and ~$16 billion more than President Obama’s budget request.
Boeing, Lockheed Martin, and Northrop Grumman all announced 1Q17 earnings this past week with mixed results. Boeing raised its forecast for full-year earnings after it reported a ~19.0% year-over-year (“YoY”) increase in profit for 1Q17. However, Boeing’s revenue decreased ~7.3% YoY and missed consensus analyst estimates by ~$330 million (~1.5%).
On Wednesday, President Trump held a joint press conference with North Atlantic Treaty Organization (“NATO”) Secretary General Jens Stoltenberg at the White House. In his remarks, Trump stated that he no longer thinks NATO is “obsolete.”
On Thursday, April 6th, President Trump ordered a retaliation Tomahawk cruise missile strike against a Syrian Government controlled airfield that is suspected to be responsible for a chemical weapons attack against innocent civilians in Syria earlier this week. The U.S. retaliation marks the first instance of direct military action against the Assad regime in Syria, adding further strain to already tense relationships in the region, both with Syria and its allies, including Russia.
Lockheed Martin is expected to receive approval from the Pentagon for the production of 200 CH-53K King Stallion helicopters for ~$29 billion. This new helicopter has the ability to transport three times as much cargo as its predecessor, the Super Stallion.
After recent intelligence that the Islamic State is developing a bomb to hide in portable electronics, the U.S. and Britain banned the carrying of electronics larger than a cell phone aboard flights directly from certain Muslim-majority countries in the Middle East and Africa. Anonymous U.S. officials stated that the explosives of concern are designed to be concealed in laptop batteries.