Boeing announces MAX production has been stopped
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Boeing announces MAX production has been stopped
https://www.cnn.com/2020/01/21/busin...alt/index.html
The impact on the US economy will be hard to predict at this point but certainly some major Boeing suppliers (such as Spirit in Wichita) could be in very big trouble.
Grizz
The impact on the US economy will be hard to predict at this point but certainly some major Boeing suppliers (such as Spirit in Wichita) could be in very big trouble.
Grizz
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https://www.cnn.com/2020/01/21/busin...alt/index.html
The impact on the US economy will be hard to predict at this point but certainly some major Boeing suppliers (such as Spirit in Wichita) could be in very big trouble.
Grizz
The impact on the US economy will be hard to predict at this point but certainly some major Boeing suppliers (such as Spirit in Wichita) could be in very big trouble.
Grizz
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Further delays
Wall Street Journal just reported that Boeing says that return of the Max will be at least the middle of the year for regulator approval. Boeing shares fell by 5%.
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Almost 200 aircraft were mothballed in March of 2019, so if approval is given by all governing bodies for them to return to service, I wonder what the lag time will be to service the aircraft, train / retrain the crews (pilots and all support staff) etc.
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You really have to wonder where Boeing go with this. Over a year lost 737 cashflow, massive penalties to customers, and the pain and cost of fixing it. But what option do they have? A clean sheet now wouldn't see light until 2025...what to do in the meantime? I can't see any option other than persevere...MAXs will be going very cheap by the time this is all over. Surely the clean sheet has to be on the way though...
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Normally such official announcements potentially impacting share prices are released outside trading hours.
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The first part of the title is much inflated relative to the contents. Trading was temporary suspended as FAA had to make an announcement during trading hours. Suspension was necessary to make sure nobody could profit by say getting the info 4 seconds earlier. Then the trading was resumed.
Normally such official announcements potentially impacting share prices are released outside trading hours.
Normally such official announcements potentially impacting share prices are released outside trading hours.
"Boeing Dives to Crisis Low on 737 MAX Delay"
Bloomberg says:
"Boeing’s Max Ruined Christmas. Next Up, Summer."
IBD again:
"Boeing Stock Dives As 737 Max Return Slips Further; Rival Airbus Jet Gains"
Boeing news is genuinely bad. The share price, this evening, is not very far from its 52-week low. I don't think the headlines are particularly exaggerated.
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The first part of the title is much inflated relative to the contents. Trading was temporary suspended as FAA had to make an announcement during trading hours. Suspension was necessary to make sure nobody could profit by say getting the info 4 seconds earlier. Then the trading was resumed.
Normally such official announcements potentially impacting share prices are released outside trading hours.
Normally such official announcements potentially impacting share prices are released outside trading hours.
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You really have to wonder where Boeing go with this. Over a year lost 737 cashflow, massive penalties to customers, and the pain and cost of fixing it. But what option do they have? A clean sheet now wouldn't see light until 2025...what to do in the meantime? I can't see any option other than persevere...MAXs will be going very cheap by the time this is all over. Surely the clean sheet has to be on the way though...
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It's contingency planning, Boeing knew that the Max was the last throw of the dice for the 737.
797 had been looked at and rejected as "Grandfathering" the Max was a better option in their opinion (and not without outside influence).
797 will come along a little earlier than planned, how early is up to Boeing.
I would like to think that Boeing will endeavour to make the 797 the best plane they've ever produced.
797 had been looked at and rejected as "Grandfathering" the Max was a better option in their opinion (and not without outside influence).
797 will come along a little earlier than planned, how early is up to Boeing.
I would like to think that Boeing will endeavour to make the 797 the best plane they've ever produced.
Not exactly 'new news' that MAX production was stopped - Boeing announced it a month ago. The stock price had much more to do with the expected return to service being delayed until mid-year.
The MAX is like owning an old car which keeps requiring repairs, eventually you realise you are throwing good money after bad and you would be better of junking it and buying a new one.
I can't see how this announcement can have any more credibility than any of the previous Boeing announcements about when the aircraft would re-enter service, none of which have been met, and presumably a significant aspect of Muhlenburg's departure, making a series of statements that proved to be inaccurate.
Boeing is now having to look for USD 10bn of a loan, first sign of them running out of cash
https://www.cnbc.com/2020/01/20/737-...n-or-more.html
I wonder how the two are connected, that they need to be pretty honest to borrow that much. I wonder what the risk assessment and interest rate on it is.
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Could they obtain a licence and start building A320s in Renton? I guess that depends on how hard it is to build the tooling. Or AB pays BA to build A320 to cover demand?
This kind of thing is not unheard of in the electronics and semiconductor industry, that powerful customers forcing a temporarily single source to work with the failing second source to meet market demand.
This kind of thing is not unheard of in the electronics and semiconductor industry, that powerful customers forcing a temporarily single source to work with the failing second source to meet market demand.