May 28, 2020 / 7:19 AM / a month ago

Safran shares lifted by Boeing 737 MAX restart plan

FILE PHOTO: The Safran company logo is pictured at the company's logistic area in Colomiers near Toulouse, France, March 20, 2019. REUTERS/Regis Duvignau

PARIS (Reuters) - Safran (SAF.PA) shares rose on Thursday after Boeing (BA.N) said it would restart production of its 737 MAX jet and announced further cost-cutting measures.

Shares in the French aerospace firm, which co-produces the 737 MAX’s engines with General Electric (GE.N), were up 2.2%, while Airbus (AIR.PA) shares were 0.7% higher.

Boeing said on Wednesday it was eliminating more than 12,000 U.S. jobs, including 6,770 involuntary layoffs, as the largest American planemaker restructures in the face of the coronavirus pandemic. The move nevertheless lifted Boeing’s shares.

The U.S. rival to Airbus said it had restarted 737 MAX production at a “low rate” at its Renton, Washington factory. Reuters reported in April that regulatory approval for the MAX was not expected until at least August.

Reporting by Sudip Kar-Gupta; Editing by David Goodman and Alexander Smith

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