Worst possible news for Boeing

Quote: Nareed

The 737 MAX will be grounded worldwide within the next few months.

Nareed's last post was the day after the Ethiopian MAX crash.

Now there are over 200B737s built and sitting in parking lots. Airbus is planning to open their 9th Final Assembly Line for the A320neo family and they have announced their XLR variant (4700 nm) to complement their LR variant (4000 nm) .

Their A321ceo had a range of 3200 nm. The first one was delivered to Lufthansa's on 27 January 1994 and remained far below the B752 orders up unil 9/11.

Quote: Pacomartin

Now there are over 200B737s built and sitting in parking lots.

Are they awaiting curative maintenance or awaiting further regulator decisions as to what has to be done?

The worst possible news for Boeing is this: Mrs Mosca and I are casual fliers; we fly once or twice a year. It never mattered to us what the plane was, we just booked a trip and flew. But now we check to see what plane it is. Because we don’t care what Boeing says. We don’t trust them. We will never get on a 737 Max 8. Ever. And we are not the only ones. Anyone who trusts Boeing at this point is crazy.

I'm impressed by how well the Boing share price has performed and is holding up
https://www.macrotrends.net/stocks/charts/BA/boeing/stock-price-history

I wonder if the businesses that are suffering most are those travel firms that bought and own the planes that are parked up, rather than Boing itself.

Quote: OnceDear

I'm impressed by how well the Boing share price has performed and is holding up
https://www.macrotrends.net/stocks/charts/BA/boeing/stock-price-history

I wonder if the businesses that are suffering most are those travel firms that bought and own the planes that are parked up, rather than Boing itself.

A vast amount of Boeing's business is military contacts, and those are booming under this Administration. I don't claim to be an expert on what percentage of their business is represented by the MAX fiasco (partly because a lot of it is not public knowledge), but it's not that surprising they're weathering this with investors.

Quote: Mosca

. Anyone who trusts Boeing at this point is crazy.

But for the military versions of all these planes, that sentiment could be a death knell although the fault lies with the outsourced cheap coders.

Quote: Fleastiff

But for the military versions of all these planes, that sentiment could be a death knell although the fault lies with the outsourced cheap coders.

The military is a whole ‘nother story. Those are the people who fly Ospreys.

Quote: OnceDear

I wonder if the businesses that are suffering most are those travel firms that bought and own the planes that are parked up, rather than Boing itself.

Well the USA airlines, all had net income go up the 2nd quarter of 2019, despite the MAX groundings at American, United and Southwest. But Southwest had the most B737MAXs in their fleet and net income went by only 1.1%. They've had to cut back so severely that they are closing all operations at Newark airport this summer.

Southwest was launching their biggest route expansion in seven years with new flights to Hawaii. They started with three northern California airports (Oakland, San Jose, and Sacramento) but have had to hold off on San Francisco, San Diego, and LAX in California plus Las Vegas and Phoenix.

2nd qtr 2019 net income vs 2nd qtr 2018 (in millions of $)
01.1% $741 $733 Southwest - modest increase
19.1% $662 $556 American
35.8% $262 $193 Alaska
39.3% $1443 $1036 Delta
41.0% $70.5 $50.0 Allegiant
54.0% $1052 $683 United
913.3% $114.5 $11.3 Spirit
- to + $179 $(121) Jetblue

Indonesia is in a funny place as the owner of Lion Air had a major public argument with Boeing. He basically said Boeing threw him under the bus after the accident in October. But now Indonesian government has requested that all airlines delay or cancel their orders with Airbus over a dispute over Palm oil. Obviously if you are an airline you can't fight Boeing and Airbus at the same time, so the CEO of Lion Air has publicly stated that he hopes Boeing gets permission to fly the Max jets soon, as he needs the jets he has ordered.

https://en.wikipedia.org/wiki/Palm_oil You can read about Palm oil dispute in wikipedia article

European authorities announce they will ignore any FAA approval of the MAX and will require its own safety testing program.

Quote: Fleastiff

European authorities announce they will ignore any FAA approval of the MAX and will require its own safety testing program.

Sounds like Airbus made some payola.