Boeing shares rise as strike averted, FAA clears plan to resume 787 deliveries
Boeing hasn't been able to deliver 787 Dreamliners for roughly 2 years
Boeing's shares jumped 5.4% in the premarket on Monday after news that the company averted a strike and secured FAA approval to resume major aircraft deliveries.
A Boeing union of 2,500 employees was scheduled to go on strike Monday, but instead announced they will hold a vote on the company's new contract offer on Wednesday. The strike would have gutted production at three defense plants in the U.S.
The FAA also approved Boeing's plan to impose strict inspections on deliveries of 787 Dreamliners, which have been halted for roughly two years. The company expects to resume deliveries of the aircraft in August, according to CNBC.
Boeing's new union contract offer would allow employees to accept an $8,000 lump sum or deposit the same amount into their 401k accounts. Union members will vote on the contract Wednesday.
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Boeing profits have struggled in recent months while the company awaited approval to resume Dreamliner deliveries.
The company reported a profit of $160 million from April-June this year, compared to $560 million in the same months last year.
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The constant delays in approval for Dreamliner deliveries has placed the company in the undesirable position of having $25 billion worth of aircraft sitting in inventory, according to the Wall St. Journal.