GE shares closed 1.9% lower on Wednesday following the news.
Meanwhile, CFM International has come in its defense saying the engine is one of the most reliable ones, and power over 6,700 airliners manufactured by Boeing (BA) and its European competitor Airbus. Anyways, Southwest Airlines have launched an investigation into the engine type, which is expected to be completed in a month’s time. Till then, GE will be on tenterhooks.
Aviation is probably the sole unit that is performing remarkably well for the troubled industrial mammoth.
Adding to GE’s woes, Reuters on Wednesday reported that a few Boeing customers including Korean Airlines had already launched an investigation into this particular engine. The report also adds that some European and American regulators already had apprehensions about this engine.
It may be noted that Aviation is probably the sole unit that is performing remarkably well for the troubled industrial mammoth. The GE stock has fallen almost 25% so far this year, and over 50% in the past one year.