Posted on 04/10/2019 8:27:43 AM PDT by ProtectOurFreedom
Boeing announced Tuesday that deliveries for all of its 737 jets fell to 89 in the first quarter, a dip from 132 last year. (-32%)
The plane maker halted deliveries of its 737 Max following the global grounding of the jets that were implicated in two fatal crashes in Ethiopia and Indonesia that killed a total of 346 people.
Total orders fell to 95 aircraft in the first quarter, a drop from 180 a year earlier. There were no new 737 Max orders in March. (-47%)
Boeing announced Friday that it’s cutting production by 20 percent as it tries to find a software fix to get the planes flying again.
There were no new 737 Max orders in March.
(Excerpt) Read more at cnbc.com ...
Separately, Garuda Indonesia is the first airline to attempt to cancel its order for Boeing's 737 Max 8 aircraft, a decision the airline announced on Friday.
If it’s not Boeing, I’m not going....to the morgue.
Boing!
Take the hit.
Sell only to USA and close allies, no more appropriated tech and intellectual property by the EU , China or Russia.
“Groundings,” alright.
I wonder if they lose their deposit?
Good question. Depends how good their contracts team is and their negotiating skills.
At companies I worked for, our contracts always tried, at a minimum, to recoup the costs of materials we had purchased and our associated fixed costs.
Not to mention the halt in deliveries of KC-46A tankers to the USAF because of quality control issues.
This certainly does not help with the trade deficit...
This is surprising to me.
Seems like more savvy airline purchasing departments would negotiate some new orders in this environment. 737 max's are NOT going away. They are injured now, putting purchasers in the perfect negotiating position. As in a "buy on the dips" kind of way.
It might be the buyers knew the quarterly results reporting date was coming up, surmised that it would be bad, and could be using the bad results to further enhance their negotiating position as we type.
I love Boeing, they made the B-17!!! But still they deserve this one.
Agreed. Perhaps buyers know that this is not the “bottom”. Perhaps Boeing know they can weather the storm a bit, and are not selling thinking they can reopen for 737 business in a soon to be better climate. Lots of possibilities.
Bottom line though, 737 WILL be fixed, and Boeing will have to take a big hit.
That’s why negotiating is SO hard. Future is obviously unknowable. You don’t know that your opponent is holding. Seller doesn’t know what the competition is doing.
I am surprised that the issues with the KC-46A have not received more public notice. Boeing is in deep trouble because its management has compromised the quality of their aircraft. In recent years, my experience as a passenger has been that new Airbus models have better fit and finish and better attention to detail. Several airline pilots I know are scathing in their comments about the declining quality of Boeing’s aircraft. Like the US auto industry, Boeing’s management embraced financial engineering and cost-cutting over actual aircraft engineering.
Boeing has cause to worry. Like the newer model 737s, the efficiency, range, and comfort of the A220 permit it to fly the long, direct routes that appeal to many travelers.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.