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Boeing posts first loss in two decades as 737 Max costs double

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Boeing posts first loss in two decades as 737 Max costs double

Old 29th Jan 2020, 15:55
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Boeing posts first loss in two decades as 737 Max costs double

As expected, the first annual loss for more than 2 decades.

https://komonews.com/news/nation-wor...max-costs-rise
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Old 29th Jan 2020, 17:19
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Originally Posted by 568 View Post
As expected, the first annual loss for more than 2 decades.

https://komonews.com/news/nation-wor...max-costs-rise
And, so far, the share price is up about 2.25% for the day. Investors remain relatively unconcerned, for now.
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Old 29th Jan 2020, 18:44
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Originally Posted by OldnGrounded View Post
And, so far, the share price is up about 2.25% for the day. Investors remain relatively unconcerned, for now.
Read that.
The situation may change over the course of the year.
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Old 29th Jan 2020, 19:17
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Donny will look after them.
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Old 29th Jan 2020, 19:33
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Originally Posted by 568 View Post
Read that.
The situation may change over the course of the year.
Frankly, I'm rather surprised that it hasn't changed yet.
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Old 29th Jan 2020, 19:35
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Originally Posted by Planet Basher View Post
Donny will look after them.
He might want to. I don't think there's much any US president can do -- certainly not this one -- that will significantly affect international views of Boeing and its products.
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Old 29th Jan 2020, 22:03
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Originally Posted by OldnGrounded View Post
Frankly, I'm rather surprised that it hasn't changed yet.
I was also thinking that as the share value increased a little today.
787 production to slow to approximately 12 per month this year and then 10 per month next year due to orders in Asia, so we shall have to see what transpires.

Last edited by 568; 30th Jan 2020 at 16:05.
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Old 30th Jan 2020, 09:53
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Previous post.
"I was also thinking that as the share value increased a little today.
787 production to slow to approximately 12 this year and then 10 the next due to orders in Asia, so we shall have to see what transpires."

More like 10 to 12 per MONTH.
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Old 30th Jan 2020, 10:55
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Originally Posted by Planet Basher View Post
Donny will look after them.
Something appears to be levitating Boeing's share price.
Daily traded volume goes up times three and the price RISES. Try that down your farmers market with a truck load of potatoes.

https://finance.yahoo.com/quote/BA/

PS I am not a financial analyst but it looks pretty weird to me.
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Old 30th Jan 2020, 11:21
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WOW! I honestly didn't expect Boeing to go that deep into red. Of course, they lost money but losing $10bn and then going into negative $800mil is a bit too much to swallow. And they are looking for another $10bn to borrow... I don't understand how that company is still breathing.
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Old 30th Jan 2020, 11:25
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Boeing CEO. Reality disconnect.....CHECK

Just read this on Flight Global:
https://www.flightglobal.com/air-tra...136438.article

Among the sea of nothingness and abbreviations (NMA, NSA, FSA), the phrase that caught my attention:
"I want to be sure I understand everything about the widebody, narrowbody world," says David Calhoun, the company's CEO.
The guy's been sitting on the Boeing's board of directors for ELEVEN YEARS, and he still "wants to be sure he understands" the only two segments his company works in!!! I'm sorry but I don't think Boeing has any time for the chief's soul searching. What it needs is someone at the helm who actually knows what he's doing. And then it needs to brace for what looks increasingly like a fight for survival.

Too harsh?

Last edited by ProPax; 30th Jan 2020 at 11:46.
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Old 30th Jan 2020, 12:04
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Originally Posted by ProPax View Post
Just read this on Flight Global:
https://www.flightglobal.com/air-tra...136438.article

Among the sea of nothingness and abbreviations (NMA, NSA, FSA), the phrase that caught my attention:


The guy's been sitting on the Boeing's board of directors for ELEVEN YEARS, and he still "wants to be sure he understands" the only two segments his company works in!!! I'm sorry but I don't think Boeing has any time for the chief's soul searching. What it needs is someone at the helm who actually knows what he's doing. And then it needs to brace for what looks increasingly like a fight for survival.

Too harsh?
Well, perhaps a bit. I suspect he intended to convey something slightly different but as it stands, it is a remarkably crass statement made at a time when Boeing cannot afford any more PR disasters.

It is a terrible shame that a fine company, responsible for so many successful products, should be brought so low.
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Old 30th Jan 2020, 12:05
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I was under the impression that Boeing had already announced a $12bn line of credit? Presumably the markets are assuming that Boeing has had the sense to chuck everything, including the kitchen sink, into this set of accounts to draw a line under this issue?
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Old 30th Jan 2020, 12:36
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Originally Posted by Gipsy Queen View Post
it is a remarkably crass statement made at a time when Boeing cannot afford any more PR disasters.
I must be reading a different article.

Of the three quotes attributed to Calhoun

"We have asked the team to step back and reassess our commercial product development strategy to determine what family of airplanes will be needed in the future."
"This is a decision [that] me and our new commercial aircraft leader wanted to make. We will not design our next airplane on the basis of the A321. I know where the NMA is targeted now. I want to be sure I understand everything about the widebody, narrowbody world."
"I want to make sure we have an airplane [specification] that I believe in. As soon as we come to a [specification] on what we want to do, we will move forward very quickly."
I can't see anything that can remotely be described as "crass".
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Old 30th Jan 2020, 13:06
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Originally Posted by DaveReidUK View Post
I can't see anything that can remotely be described as "crass".
Perhaps not, but to me this whole 737 MAX scandal indicates a degree of incompetence that goes right to the top of a once iconic company. How the mighty have fallen.
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Old 30th Jan 2020, 13:20
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Originally Posted by DaveReidUK View Post
Of the three quotes attributed to Calhoun

re your quotes, is English a second language to the new CEO? Apparently there is a King now in the white house, so we appear to have come full circle, back to old blighty. perhaps it is the media, but, golly.

"Esta es una decisión [que] yo y nuestro nuevo líder de aviones comerciales queríamos tomar"
"Это решение, которое [я] и наш новый лидер коммерческих самолетов хотели принять"
"આ એક નિર્ણય છે [કે] હું અને અમારા નવા વ્યવસાયિક વિમાન નેતા લેવા માંગતા હતા"

yep, maybe it works in Gujarati... more than english at least.







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Old 30th Jan 2020, 16:04
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Smile

Originally Posted by jack11111 View Post
Previous post.
"I was also thinking that as the share value increased a little today.
787 production to slow to approximately 12 this year and then 10 the next due to orders in Asia, so we shall have to see what transpires."

More like 10 to 12 per MONTH.
Thanks for the correction.
I meant to add "per month" but failed miserably!
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Old 30th Jan 2020, 16:30
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Originally Posted by DaveReidUK View Post
I must be reading a different article.

Of the three quotes attributed to Calhoun, I can't see anything that can remotely be described as "crass".
My comment was made exclusively in respect of ProPax's submission.
I made no reference to the original material since I have not read any of it. My preference is to follow the Wittgenstein maxim; "Whereof I do not know, thereof I cannot speak". Consequently, I'm content to let my adjective stand.


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Old 30th Jan 2020, 17:26
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Originally Posted by Gipsy Queen View Post
My comment was made exclusively in respect of ProPax's submission.
I made no reference to the original material since I have not read any of it. My preference is to follow the Wittgenstein maxim; "Whereof I do not know, thereof I cannot speak". Consequently, I'm content to let my adjective stand.
Fair enough - one should never let the facts get in the way of a good story.
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Old 30th Jan 2020, 17:54
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Originally Posted by ProPax View Post
The guy's been sitting on the Boeing's board of directors for ELEVEN YEARS, and he still "wants to be sure he understands" the only two segments his company works in!!! I'm sorry but I don't think Boeing has any time for the chief's soul searching. What it needs is someone at the helm who actually knows what he's doing. And then it needs to brace for what looks increasingly like a fight for survival.

Too harsh?
Maybe.

Boeing's problem right now is that they have to replace TWO aircraft types rather soon - the 737, which the MAX debacle shows has reached (and overreached) its limits, and the 757/767.

Boeing hoped continuing to expand the 737 meant the NMA could focus on the other part of the market - sub-787 wide-body.

Now the question arises - can Boeing afford to develop both a new single-aisle and a new double-aisle at the same time? Does there exist any one design (SA or DA) that can simultaneously handle, via fuselage stretching/shrinking, both ends of the "medium" market? Or other commonalities (757/767-style) that can reduce the total costs of two aircraft designs? And what will be the best choice for the market/economy/world situation of 2030, when the NMA or NMA/NSA actually goes into service?

That requires one h*ll of a crystal ball - especially given Boeing's financial constraints. It will amount to "betting the company all over again" on one choice or the other.

On the other question - I would not expect a board member to be as completely up-to-speed on all the details of a company's plans as the CEO - otherwise, why waste money on a CEO? Calhoun is having to do a "quick-study" course on how Boeing's world has changed over the past 12-15 months. And at this point, he probably is not fully confident that the decisions of the dismissed CEO were trustworthy, so they are all subject to review.
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