Boeing has been in the worst crisis in its history for almost five years. In 2023, the problems will cause Boeing a loss of more than $2.2 billion.
The near-miss of a Boeing 737 Max exacerbates the ongoing crisis of the world’s second-largest aircraft manufacturer. After five years of losses in a row, CEO Dave Calhoun does not currently want to comment on the business prospects. “We will simply focus on each next aircraft,” emphasized Calhoun when presenting quarterly figures on Wednesday.
Boeing is currently no longer allowed to expand production of the 737 Max series by order of the US Federal Aviation Administration (FAA). After a near-miss involving a 737-9 Max at the beginning of January, supervisors are taking a close look at production of the entire model series. Management actually wanted to increase production of the 737 Max jets to 50 machines per month by 2026 at the latest. Now it remains at 38 jets per month.
The FAA took action after a fuselage part of Alaska Airlines’ Boeing 737-9 Max came off in mid-flight. First, all aircraft of the affected variant had to remain on the ground and be examined. The supervisors then initiated an investigation against the manufacturer. In addition, the US traffic safety authority NTSB is currently investigating the incident.
Calhoun: Accept responsibility
It is still unclear whether the component’s intended fastening bolts were installed at all or came loose – and whether the error occurred at Boeing or a supplier. Calhoun reiterated in a conference call with analysts that Boeing would accept ultimate responsibility regardless of the outcome of the investigation: “We caused the problem – and we understand that.”
In 2023, the problems with the 737 Max medium-haul jet and other models caused Boeing a loss of more than 2.2 billion dollars (a good 2 billion euros). Last year the decline was more than twice as high.
Boeing delivered 528 passenger and cargo jets last year, ten percent more than the previous year. Sales even rose by 17 percent to $77.8 billion. However, production deficiencies and rework on medium-haul jets from the 737 Max series and on long-haul aircraft from the 787 “Dreamliner” dragged the result into the red, as did high additional costs for the future US presidential aircraft Air Force One, the tank jets for the US Air Force, a training aircraft and a stealth drone.
As a result, Boeing was not only in the red in the passenger and cargo jet business. The operating loss in the defense and space division was even higher at almost $1.8 billion. Only the service business contributed billions in profit.
Boeing has been in the worst crisis in its history for almost five years. At that time, two medium-haul 737 Max jets crashed within a few months – 346 people died. In March 2019, aviation authorities therefore imposed take-off bans. The jets were only registered again after technical improvements.
Source: Stern
