Discussion: Boeing Pulls 2019 Forecast Over 737 Max 8 Uncertainty, Suspends Stock Buybacks

See: dramatic results of deregulation and how it is ALWAYS good for business, and thus always good for the public.

~cough, cough~

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The high cost of …not buying the upgrade package?

The Invisible Hand of The Marketplace does NOT mess around! Isn’t Capitalism a gas?

Neither Lion Air Flight 610, which crashed in 2018, nor Ethiopian Airlines Flight 302, which crashed on March 10 of this year, had either the so-called angle of attack indicator or the disagree light, which Boeing sells as upgrades to airlines.

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Boeing is pulling its 2019 forecast over 737 Max uncertainty and says it’s suspending its stock buybacks.

They are going to need that money for the lawsuits. All the lawsuits.

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What works in BA’s favor is that both BA and Airbus are maxed out in narrow body jetliner production capacity, so any B737 Max cancellations will require a 6-7 year wait for A320 family deliveries to occur.

Second, the A320 is the first FBW commercial transport and has had a number of flight control related crashes and anomalies which could have been fatal, including an uncommanded 45 degree roll on takeoff in NY that clipped a light pole and almost resulted in a crash in just the past month.

Flying is safer than any other form of travel, but it is not entirely risk free. BA will get the B737 Max back in the air soon enough, but will suffer both financial and reputational consequences. How long these issues will last is just speculation at this point.

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Fundamentally flawed design, not sure they can software their way out of this. Maybe next time, instead of a rush job to match the competitor, focus on building an airframe which actually has a proper balance between the engine size/positioning and the rest of the airframe.

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Yep. Every time I get on a flight, it does not escape me that I am placing my life in the hands of pilots of a tube that is hurtling through the sky at 30-35K in altitude. But I still do it.

Soon after the Ethiopia crash I considered buying Boeing stock because I believe they will recover. Then I remembered how these situations play out…the bad news drips, drips, drips.

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Gasp! You mean Boeing was spending their tax cut on stock buybacks instead of raising employee salaries (or on fixing the 737 Max)? I’m shocked, I say - just shocked! And to think Boeing’s CEO, Dennis Muilenburg, is a frequent visitor to Mar-a-lago.

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Yeah, a fair number clearly bought in on the drop, but it’s very risky at this point.

I bought into BP at the height of the oil spill on the same line of thinking, and it took quite a while for those shares to turn to the black.

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Boeing stock is up over 1% at 11AM post earnings announcement. An announcement that was a disaster. The ability of the stock to move up after that and the terrible PR from this weekends NY Times story is a hugely important event.

The stock market is now showing signs that it is under almost complete control of the 1% and is no longer a market in any sense. All history would suggest that this will pass and is just a cyclical sort of thing. Don’t be absolutely sure. While every big market rally in any market in history always declares itself at the vanguard of a new age one can this time at least trace out how the very mechanisms of the financial markets have come under control. While sentiment is always cyclical when so much ownership falls into so few hands sentiment could be rendered mute.

All true, but I can’t help but think that the entire industry is failing to sufficiently account for passenger confidence issues.

While a lot of this might be down to perception, when these finally go back into operation, how many passengers are going to be willing to fly on one? I know I’m going to be avoiding them.

Sure, we’ve had issues with particular aircraft before that required them to be grounded while fixes were made. But I’m thinking that there’s going to be a world of difference in terms of passenger perception between “we upgraded the bolts that hold the engines in place” to “we fixed the firmware”

It said Wednesday it is making steady progress on the path to final certification for a software update for the 737 MAX, with over 135 test and production flights of the software update complete.

If 737 MAX is grounded how did they do production flights? Cargo flights?

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You mean next time Mgmt shouldn’t blow off a fast closing competitor and when realizes “Oh Shite they’re catching up” not order staff to work double-time to make up for your stupidity?

Would that work? :smirk:

Boeing has a few issues with it’s Apache gunship as well. That rotor thingy is just not right.