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Dieuwer
Topic Author
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Boeing Financial Discussion 2020

Wed Mar 11, 2020 7:27 pm

Just announced that Boeing has booked 46 cancellations with a net loss of 28 orders AND has blown through it entire $14B loan to keep it afloat!

https://seekingalpha.com/news/3550618-b ... -28-orders

I predict that if Boeing does not get a government bailout (soon), it will go bankrupt.
Last edited by qf789 on Sun Mar 15, 2020 5:12 am, edited 1 time in total.
Reason: clickbait title
 
ual4life
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Re: Boeing in Crisis

Wed Mar 11, 2020 7:33 pm

It will go bankrupt along with the entire airline industry, welcome to 2020
NNVII
 
crjflyboy
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Re: Boeing in Crisis

Wed Mar 11, 2020 7:33 pm

USA will not allow BOEING to go BK

I would not bet the farm on a ALPHA post ..
Last edited by crjflyboy on Wed Mar 11, 2020 7:35 pm, edited 1 time in total.
 
oschkosch
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Re: Boeing in Crisis

Wed Mar 11, 2020 7:34 pm

Will the stock go lower than 150?

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IWMBH
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Re: Boeing in Crisis

Wed Mar 11, 2020 7:51 pm

Boeing has definitely has some work to do, but they aren't in a crises.
They've the almost unlimited budget of the USA to thank for that, they will never allow BA to go bankrupt.
Also, airlines can't just order Airbus instead of Boeing, Airbus won't be able to fulfil that many orders.
 
Dieuwer
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Re: Boeing in Crisis

Wed Mar 11, 2020 7:53 pm

oschkosch wrote:
Will the stock go lower than 150?

Gesendet von meinem SM-G950F mit Tapatalk


Lower than $100 you mean ;) :stirthepot:
 
oschkosch
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Re: Boeing in Crisis

Wed Mar 11, 2020 7:54 pm

Dieuwer wrote:
oschkosch wrote:
Will the stock go lower than 150?

Gesendet von meinem SM-G950F mit Tapatalk


Lower than $100 you mean ;) :stirthepot:
You think so? Is anyone here shorting Boeing? Should we?

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MIflyer12
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Re: Boeing in Crisis

Wed Mar 11, 2020 8:04 pm

Dieuwer wrote:
Just announced that Boeing has booked 46 cancellations with a net loss of 28 orders AND has blown through it entire $14B loan to keep it afloat!

https://seekingalpha.com/news/3550618-b ... -28-orders

I predict that if Boeing does not get a government bailout (soon), it will go bankrupt.


Very, very thinly argued. Do you think 28 net cancellations is financially significant to a firm with a backlog of 5,000 commercial airplanes?
 
oschkosch
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Re: Boeing in Crisis

Wed Mar 11, 2020 8:06 pm

Boeing worker in Everett has confirmed case of corona virus. What doesnthat mean for the rest of the workforce? Plant closure imminent?


https://leehamnews.com/2020/03/11/engin ... more-32841

The news came as Boeing announced the first case of COVID-19 among its 70,000-member Puget Sound workforce: an unidentified employee at the company’s Everett plant.

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YYZLGA
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Re: Boeing in Crisis

Wed Mar 11, 2020 8:10 pm

It does really make me shake my head at the unacceptability of any rescue of Bombardier, especially after it was directly targeted by the U.S. government. Of course, the U.S. would never be so foolish as to let its biggest high-tech exporter go under.
 
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scbriml
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Re: Boeing in Crisis

Wed Mar 11, 2020 8:15 pm

Dieuwer wrote:
Just announced that Boeing has booked 46 cancellations with a net loss of 28 orders AND has blown through it entire $14B loan to keep it afloat!

https://seekingalpha.com/news/3550618-b ... -28-orders

I predict that if Boeing does not get a government bailout (soon), it will go bankrupt.


Given Boeing hasn’t yet taken its promised loans (though it may as early as tomorrow according to reports), how can it have “blown through it”? :confused:
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Polot
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Re: Boeing in Crisis

Wed Mar 11, 2020 8:17 pm

scbriml wrote:
Dieuwer wrote:
Just announced that Boeing has booked 46 cancellations with a net loss of 28 orders AND has blown through it entire $14B loan to keep it afloat!

https://seekingalpha.com/news/3550618-b ... -28-orders

I predict that if Boeing does not get a government bailout (soon), it will go bankrupt.


Given Boeing hasn’t yet taken its promised loans (though it may as early as tomorrow according to reports), how can it have “blown through it”? :confused:

OP doesn’t seem to understand that “draw down entire loan” means take entire loan, not that they have “blown through it. “
 
AYVN
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Re: Boeing in Crisis

Wed Mar 11, 2020 8:28 pm

They split the company. Government will save the defense part and for rest of the company chapter 11 will form a new Boeing with MAX cancelled. Just my prediction...
 
cedarjet
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Re: Boeing in Crisis

Wed Mar 11, 2020 8:57 pm

It’s pretty serious, January 2020 was the first year since the mid 1950s without selling a single jet airliner. And the 777X only has a total of 300 orders (which I find incredible). Luckily (for Boeing, not the rest of us) the US military budget is $720 billion a year so Boeing aren’t going out of business any time soon
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Revelation
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Re: Boeing in Crisis

Wed Mar 11, 2020 9:20 pm

Dieuwer wrote:
Just announced that Boeing has booked 46 cancellations with a net loss of 28 orders AND has blown through it entire $14B loan to keep it afloat!

https://seekingalpha.com/news/3550618-b ... -28-orders

I predict that if Boeing does not get a government bailout (soon), it will go bankrupt.

FAKE NEWS!

The source news article ( https://finance.yahoo.com/news/boeing-p ... 02730.html ) says:

“They want to have cash on the balance sheet,” said Bloomberg Intelligence’s Matthew Geudtner.

... so it's not "blown through" already.

It's silly to trust anything Seeking Alpha writes.
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phlswaflyer
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Re: Boeing in Crisis

Wed Mar 11, 2020 9:22 pm

Boeing is in deep trouble. They will declare BK and they will survive. I blame 20 years of corrupt GE based management. I blame a board and the last two CEO's who were motivated by stock price ( GE BS) and the ghost of Welch. Incompetent and woefully unprepared. Blood money. I blame the last two CEO's who failed to see the future and all they could do was react to Airbus. I see a company steeped in a corrosive culture that has very possibly destroyed an American Icon.
 
StTim
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Re: Boeing in Crisis

Wed Mar 11, 2020 9:22 pm

Revelation wrote:
Dieuwer wrote:
Just announced that Boeing has booked 46 cancellations with a net loss of 28 orders AND has blown through it entire $14B loan to keep it afloat!

https://seekingalpha.com/news/3550618-b ... -28-orders

I predict that if Boeing does not get a government bailout (soon), it will go bankrupt.

FAKE NEWS!

The source news article ( https://finance.yahoo.com/news/boeing-p ... 02730.html ) says:

“They want to have cash on the balance sheet,” said Bloomberg Intelligence’s Matthew Geudtner.

... so it's not "blown through" already.

It's silly to trust anything Seeking Alpha writes.


Agree it isn't blown through BUT you normally only draw down on loans as they are required as you start to accrue interest on the principle as soon as you draw down the cash.
 
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Revelation
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Re: Boeing in Crisis

Wed Mar 11, 2020 9:26 pm

StTim wrote:
Revelation wrote:
Dieuwer wrote:
Just announced that Boeing has booked 46 cancellations with a net loss of 28 orders AND has blown through it entire $14B loan to keep it afloat!

https://seekingalpha.com/news/3550618-b ... -28-orders

I predict that if Boeing does not get a government bailout (soon), it will go bankrupt.

FAKE NEWS!

The source news article ( https://finance.yahoo.com/news/boeing-p ... 02730.html ) says:

“They want to have cash on the balance sheet,” said Bloomberg Intelligence’s Matthew Geudtner.

... so it's not "blown through" already.

It's silly to trust anything Seeking Alpha writes.


Agree it isn't blown through BUT you normally only draw down on loans as they are required as you start to accrue interest on the principle as soon as you draw down the cash.

These are anything but normal times. It's hard to get anyone to loan out such figures even in good times. Seems prudent to take the cash now and worry about the interest later.
Wake up to find out that you are the eyes of the world
The heart has its beaches, its homeland and thoughts of its own
Wake now, discover that you are the song that the morning brings
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Aesma
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Re: Boeing in Crisis

Wed Mar 11, 2020 9:40 pm

Yeah in any case there is Chapter 11.

What I wonder is if Trump would order massive amounts of KC-46s or something like that. But realistically that wouldn't really help.
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MohawkWeekend
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Re: Boeing in Crisis

Wed Mar 11, 2020 9:52 pm

Actually they just were talking about Boeing on CNBC. They spent a considerable amount of time on BA large and growing pension deficit and how the company is no longer a cash flow machine.
Before there is any bailout remember there is a reason bankruptcy laws exist. Why couldn't Lockheed Martin buy the AIrcraft Division and Northrup Grumman Boeing's Defense and Space. I think we only have 2 companies making armored vehicle and 2 making warships in the US. Remember US Steel was once America's largest company.
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    Aither
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    Re: Boeing in Crisis

    Wed Mar 11, 2020 9:55 pm

    IWMBH wrote:
    Also, airlines can't just order Airbus instead of Boeing, Airbus won't be able to fulfil that many orders.

    Except if airlines need less aircraft.
    Never trust the obvious
     
    LSGL
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    Re: Boeing in Crisis

    Wed Mar 11, 2020 10:00 pm

    MIflyer12 wrote:
    Dieuwer wrote:
    Just announced that Boeing has booked 46 cancellations with a net loss of 28 orders AND has blown through it entire $14B loan to keep it afloat!

    https://seekingalpha.com/news/3550618-b ... -28-orders

    I predict that if Boeing does not get a government bailout (soon), it will go bankrupt.


    Very, very thinly argued. Do you think 28 net cancellations is financially significant to a firm with a backlog of 5,000 commercial airplanes?


    It definitely is significant if this is the start of a trend.
     
    MohawkWeekend
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    Re: Boeing in Crisis

    Wed Mar 11, 2020 10:02 pm

    Actually selling Boeing Commercial Aircraft to Honda or Toyota would probably be better than the other two.
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      jfk777
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      Re: Boeing in Crisis

      Wed Mar 11, 2020 10:04 pm

      Many 737 MAX planes are getting switched for 787 or 777X aircraft. This can be misleading since a smaller number of 787 get ordered from a larger 737 Max order, say 30 737 Max for 10 787. The 787 continues to sell as Air New Zealand and All Nippon have placed recent order, to the horror of Rolls Royce both these airlines ordered GE engines for their new 787 being current RR customers.
       
      wingman
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      Re: Boeing in Crisis

      Wed Mar 11, 2020 10:13 pm

      As crazy as it seems the 737 line and supply chain being idle may have a silver lining if the virus plays out over a significant number of months. They have just that one line where Airbus now has 4? 320 series lines in operation. Massive deferrals would be a very ugly thing for them too, possibly inflicting equally severe pain that Boeing has already inflicted on itself and adjusted for. All in all a terrible situation. Fro me this is the first week I haven't flown in over 8 months and my sympathies go out to everyone in the travel sector at large. Much more of this and it's easy to see at least 25% of the current airlines not making it. Hotels the same. Restaurants that cater to travelers will be the worst off of the lot.
       
      strfyr51
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      Re: Boeing in Crisis

      Wed Mar 11, 2020 10:16 pm

      oschkosch wrote:
      Dieuwer wrote:
      oschkosch wrote:
      Will the stock go lower than 150?

      Gesendet von meinem SM-G950F mit Tapatalk


      Lower than $100 you mean ;) :stirthepot:
      You think so? Is anyone here shorting Boeing? Should we?

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      the LAST arbitrager to short Boeing? was T. Boone Pickens and what the government threatened to do to Him? Backed him off in a Hurry!
      So Exactly Who is willing to step up and short Boeing again? Much less Live to tell about it?
       
      IWMBH
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      Re: Boeing in Crisis

      Wed Mar 11, 2020 10:17 pm

      Aither wrote:
      IWMBH wrote:
      Also, airlines can't just order Airbus instead of Boeing, Airbus won't be able to fulfil that many orders.

      Except if airlines need less aircraft.


      Even if airlines need less planes it will still be to much for a single airplane manufacturer. And, the corona-virus will be a temporary thing. Look at China, the amount of people with the decease are decreasing.
       
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      Francoflier
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      Re: Boeing in Crisis

      Wed Mar 11, 2020 10:19 pm

      jfk777 wrote:
      Many 737 MAX planes are getting switched for 787 or 777X aircraft. This can be misleading since a smaller number of 787 get ordered from a larger 737 Max order, say 30 737 Max for 10 787.


      Don't forget that these airlines are owed compensation, and that consequently these 787 might very well be given at a huge discount as part of the compensation package.

      Boeing would rather give away cheap or free 787s than handing out huge cash payments, but these 'orders' are not necessarily helping the 787 program much other than helping keep the production rate up.
      I'll do my own airline. With Blackjack. And hookers. In fact, forget the airline.
       
      wedgetail737
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      Re: Boeing in Crisis

      Wed Mar 11, 2020 10:20 pm

      People don't remember back after the Terror attacks on 9/11, Boeing stock was whittled down to less than $29 per share.
       
      jwjsamster
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      Re: Boeing in Crisis

      Wed Mar 11, 2020 10:22 pm

      YYZLGA wrote:
      It does really make me shake my head at the unacceptability of any rescue of Bombardier, especially after it was directly targeted by the U.S. government. Of course, the U.S. would never be so foolish as to let its biggest high-tech exporter go under.


      As a Canadian, it makes my blood boil and hope that boeing gets a taste of their own, through a small 200% tax on any boeing planes being sold outside of the USA.
       
      MonAmQB
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      Re: Boeing in Crisis

      Wed Mar 11, 2020 10:22 pm

      IMHO, BA is an obvious Too Big To Fail. The US government won't allow them to fail.
       
      afgeneral
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      Re: Boeing in Crisis

      Wed Mar 11, 2020 10:29 pm

      Aesma wrote:
      Yeah in any case there is Chapter 11.

      What I wonder is if Trump would order massive amounts of KC-46s or something like that. But realistically that wouldn't really help.


      it is feasible to carve out all the defense programs and only save that

      they could effectively let the commercial business die out

      can it be done? definitely yes! will the do it? probably not
       
      Arion640
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      Re: Boeing in Crisis

      Wed Mar 11, 2020 10:35 pm

      Dieuwer wrote:
      oschkosch wrote:
      Will the stock go lower than 150?

      Gesendet von meinem SM-G950F mit Tapatalk


      Lower than $100 you mean ;) :stirthepot:


      Hopefully. Will stock up, if you pardon the pun.
      1973-2020
       
      strfyr51
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      Re: Boeing in Crisis

      Wed Mar 11, 2020 10:36 pm

      For all the BS? Boeing and the 737 will eventually be ok. The FAA is in Sour Grapes now trying to do anything to get their "Pound of Flesh" .
      So Who was it that decided to LET Boeing inspect themselves? Who was it that wasn't hiring or training inspectors nor Engineers to look over the Boeing Findings?
      It Sure as hell wasn't Boeing!! Boeing went along with it for sure and then cheated and Lied through the Teeth! Hell! For that alone every engineering Document relating to the 737 up to the 747 should be reviewed! But? Since none of them have been crashing? It won't happen. But Now all of a sudden? The FAA wants to look at electrical wiring and all kinds of madness. They want to inspect what they've been up to now "Pencil whipping" Looking for trash in the tanks and BS like that! So tell me?
      How Many FAA inspectors are there at Airbus Commercial? Are we just taking EASA's Word for it that Airbus is above reproach? OR is this which hunt Just for Boeing?
      Either we do it for EVERYBODY? or we don't do it at all!! Maybe the FAA should have been Doing the Job we pay TAXES for in the first Place!!
       
      Aceskywalker
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      Re: Boeing in Crisis

      Wed Mar 11, 2020 10:42 pm

      The US government won't allow Boeing to collapse plain and simple - the company is too vital to the US manufacturing sector and employs enough people directly and indirectly to populate a large suburban city. Intervention if things get really bad is inevitable - cash injections, tax breaks, or even a GM-esque temporary nationalization.

      Its also not in the interest of airlines for Boeing Commercial Airplanes to shutter its doors - nobody wants a monopoly. Airbus is the only company with the resources and reputation to really compete with Boeing, and vice versa. There's relatively few parties that could deliver and support the amount of jets Boeing pushes out its doors, even if say the MAX is forever dead and will need to be scrapped.
       
      lhrnue
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      Re: Boeing in Crisis

      Wed Mar 11, 2020 10:43 pm

      Is drawing down this loan not just a response to the lower interest rates?
       
      744SPX
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      Re: Boeing in Crisis

      Wed Mar 11, 2020 10:43 pm

      The fall in oil prices, precipitous drop in travel from Coronavirus, and a potential wave of order cancellations may just be the perfect excuse to terminate the MAX, build a few more NG's for those customers that absolutely need aircraft in the next 2-3 years and push full steam ahead with NSA.
       
      MohawkWeekend
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      Re: Boeing in Crisis

      Wed Mar 11, 2020 10:48 pm

      Boeing Commercial Aircraft would not shut it's doors. It might be called Honda Commercial Aircraft without all the pension liabilities, MAX liabilities and a whole lot fewer MBA's and Chicago real estate.
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        gokmengs
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        Re: Boeing in Crisis

        Wed Mar 11, 2020 11:02 pm

        Amazing how a sensationalist news link is followed with posts in the same manner, having been a harsh critic of Boeing on the MAX debacle to suggest that one of the most successful companies in the world to go bankrupt over the MAX is just silly. Boeing as a whole derives its revenues from many sources defense being a huge one, the company is having a hard time for sure, but to suggest its demise is almost dumb.
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        Erebus
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        Re: Boeing in Crisis

        Wed Mar 11, 2020 11:31 pm

        I think MOL ought to have waited a little bit more before submitting an "offer" for new MAXes.
         
        ewt340
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        Re: Boeing in Crisis

        Wed Mar 11, 2020 11:36 pm

        They are not going bankrupt BUT. It would probably makes them smaller and put Airbus in number 1 for the future.
         
        WayexTDI
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        Re: Boeing in Crisis

        Thu Mar 12, 2020 4:18 am

        jeffrey0032j wrote:
        If Boeing is in a public crisis, Airbus is in a hidden crisis. Airbus hasn't even attempted to clear any of their dubious orders even before the coronavirus crisis.

        Not sure the comparison stands. Airbus does not have its cash cow grounded for a year, with stopped deliveries and manufacturing.
        Boeing effectively has only 1 program running somehow smoothly right now (the 787), whereas Airbus has 3 (the A220, the A320Family & the A350).
         
        jeffrey0032j
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        Re: Boeing in Crisis

        Thu Mar 12, 2020 4:46 am

        WayexTDI wrote:
        jeffrey0032j wrote:
        If Boeing is in a public crisis, Airbus is in a hidden crisis. Airbus hasn't even attempted to clear any of their dubious orders even before the coronavirus crisis.

        Not sure the comparison stands. Airbus does not have its cash cow grounded for a year, with stopped deliveries and manufacturing.
        Boeing effectively has only 1 program running somehow smoothly right now (the 787), whereas Airbus has 3 (the A220, the A320Family & the A350).

        Nothing to do with which program is running, but the amount of cancellations that one can expect. The 737 Max has gone past most of the order book fat trimming. Airbus on the other hand hasn't started on it.
         
        planecane
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        Re: Boeing in Crisis

        Thu Mar 12, 2020 5:45 am

        afgeneral wrote:
        Aesma wrote:
        Yeah in any case there is Chapter 11.

        What I wonder is if Trump would order massive amounts of KC-46s or something like that. But realistically that wouldn't really help.


        it is feasible to carve out all the defense programs and only save that

        they could effectively let the commercial business die out

        can it be done? definitely yes! will the do it? probably not

        Not really. At least not without losing a ton of money.

        They could potentially sell the commercial business. They could split the company but "letting commercial die" wouldn't with assuming the commercial side owed creditors. If they tried to let the new Boeing commercial Corp fo chapter 7, the creditors would all claim fraudulent conveyance and win due to the timing.
         
        devron
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        Re: Boeing in Crisis

        Thu Mar 12, 2020 6:00 am

        I am an airbus fanboy and BA really has only to blame themselves. Really why are they still paying a dividend haven't they realized they need to fight for survival.

        But BA can't go broke (and they still have credit opportunities especially in this low interest economy). Can we imagine a world where the 737 is not available in 3 years and the economy is growing agian? Ticket prices will be horrendous.
         
        Redsand187
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        Re: Boeing in Crisis

        Thu Mar 12, 2020 7:05 am

        strfyr51 wrote:
        For all the BS? Boeing and the 737 will eventually be ok. The FAA is in Sour Grapes now trying to do anything to get their "Pound of Flesh" .
        So Who was it that decided to LET Boeing inspect themselves? Who was it that wasn't hiring or training inspectors nor Engineers to look over the Boeing Findings?
        It Sure as hell wasn't Boeing!! Boeing went along with it for sure and then cheated and Lied through the Teeth! Hell! For that alone every engineering Document relating to the 737 up to the 747 should be reviewed! But? Since none of them have been crashing? It won't happen. But Now all of a sudden? The FAA wants to look at electrical wiring and all kinds of madness. They want to inspect what they've been up to now "Pencil whipping" Looking for trash in the tanks and BS like that! So tell me?
        How Many FAA inspectors are there at Airbus Commercial? Are we just taking EASA's Word for it that Airbus is above reproach? OR is this which hunt Just for Boeing?
        Either we do it for EVERYBODY? or we don't do it at all!! Maybe the FAA should have been Doing the Job we pay TAXES for in the first Place!!


        It was Boeing's idea to self inspect. In theory, that takes a lot of responsibility off of the FAA so they don't need the staff which is good for their budget. The FAA now going through everything with a fine-tooth comb isn't just retaliation. It's is proven Boeing has broken rules and things aren't meeting the requirements as agreed. Now the FAA has every right to go back and question everything. Looking at wiring and finding trash in fuel tanks isn't anything excessive. If the wiring was designed and built properly, there is no big deal, and I don't think anyone believes there is an acceptable about trash in a fuel tank that can potentially cause fuel starvation.

        It's more the FAA decided to give a quick look around to make sure everything is on the up and up, and they obviously found stuff that wasn't. Just because dangerous designs and sloppy work weren't called out before, doesn't mean it's okay for it to continue, especially after a major incident. If the MAX comes out of this and has ANY issue once it's back in service, the FAA is screwed right alongside Boeing. It is now the FAA's duty to make sure the plane is 100% in compliance in all aspects because Boeing can't be trusted anymore.
         
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        Phosphorus
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        Re: Boeing in Crisis

        Thu Mar 12, 2020 7:23 am

        MohawkWeekend wrote:
        Boeing Commercial Aircraft would not shut it's doors. It might be called Honda Commercial Aircraft without all the pension liabilities, MAX liabilities and a whole lot fewer MBA's and Chicago real estate.

        Very much so. If bankruptcy looms, a reasonable split (and selloff) could envisage formation of three independent entities:
        Boeing Defense and Space
        Boeing Future Transportation (including widebody airliners and Boeing Brasil)
        Boeing Commercial Airplanes: MAX, Chicago real estate, a lot of executives, legacy pension and medical liabilities.

        First two could either be floated on stock exchange, or sold to interested parties (NG's, GD's and LM's of this world; what an irony if BAE Systems ends up owning a piece!), the third sinks or swims based on merits of MAX.
        AN4 A40 L4T TU3 TU5 IL6 ILW I93 F50 F70 100 146 ARJ AT7 DH4 L10 CRJ ERJ E90 E95 DC-9 MD-8X YK4 YK2 SF3 S20 319 320 321 332 333 343 346 722 732 733 734 735 73G 738 739 744 74M 757 767 777
        Ceterum autem censeo, Moscovia esse delendam
         
        User avatar
        Dutchy
        Posts: 11115
        Joined: Sat Nov 03, 2007 1:25 am

        Re: Boeing in Crisis

        Thu Mar 12, 2020 7:36 am

        jeffrey0032j wrote:
        WayexTDI wrote:
        jeffrey0032j wrote:
        If Boeing is in a public crisis, Airbus is in a hidden crisis. Airbus hasn't even attempted to clear any of their dubious orders even before the coronavirus crisis.

        Not sure the comparison stands. Airbus does not have its cash cow grounded for a year, with stopped deliveries and manufacturing.
        Boeing effectively has only 1 program running somehow smoothly right now (the 787), whereas Airbus has 3 (the A220, the A320Family & the A350).

        Nothing to do with which program is running, but the amount of cancellations that one can expect. The 737 Max has gone past most of the order book fat trimming. Airbus on the other hand hasn't started on it.



        So you are saying that there are a few early slots going to be available for airlines wanted to transition from Boeing MAX to the NEO?
        Many happy landings, greetings from The Netherlands!
         
        Asiaflyer
        Posts: 907
        Joined: Fri May 11, 2007 11:50 am

        Re: Boeing in Crisis

        Thu Mar 12, 2020 7:53 am

        Worst possible timing for Boeing to go into another crisis just as they are about to solve the MAX grounding.
        Many arilines have already started to look into their planned deliveres for 2020 and 2021 and both Airbus and Boeing can expect deferrals and order cancellations.
        Dont expect many airlines to be able to take any new planes for growth as they planned, but instead to look at any possible way to preserve cash. The 777X looks particularily vulnerable for deferrals and cancellations.
        Airbus has so far been more lucky by already cancelling the A380 program and is still shipping out A320neo at full rate. Deferrals and cancellation will very soon hit them as well.
         
        jeffrey0032j
        Posts: 699
        Joined: Wed Jun 15, 2016 3:11 pm

        Re: Boeing in Crisis

        Thu Mar 12, 2020 8:19 am

        Asiaflyer wrote:
        Worst possible timing for Boeing to go into another crisis just as they are about to solve the MAX grounding.
        Many arilines have already started to look into their planned deliveres for 2020 and 2021 and both Airbus and Boeing can expect deferrals and order cancellations.
        Dont expect many airlines to be able to take any new planes for growth as they planned, but instead to look at any possible way to preserve cash. The 777X looks particularily vulnerable for deferrals and cancellations.
        Airbus has so far been more lucky by already cancelling the A380 program and is still shipping out A320neo at full rate. Deferrals and cancellation will very soon hit them as well.

        I see it differently, in fact, they are more prepared for this crisis than Airbus. My opinion is that they probably have multiple backup plans drawn out, ready for deployment, for the Max crisis and one that includes further market deterioration or mass cancellations. They just have to make the decision to switch between the different crisis plans. Psychologically speaking, Boeing was already in crisis mode, they don't need as much psychological adjustment as Airbus to deal with this new crisis.

        In some ways, this crisis is working in favour of Boeing than Airbus. Airbus still doesn't appear to have any plans yet, and if I'm an Airbus investor, I will be asking questions.
        Last edited by jeffrey0032j on Thu Mar 12, 2020 8:24 am, edited 1 time in total.
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