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 was expecting the following argument:
"That's not a problem, as deferred production costs are debts Boeing owns to itself."
Strange nobody posted this so far. I guess sentiment changed and people like to follow the opinion of the crowd.
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. ...
I'm not surprised. Loosing money by gambling with derivatives is even worse than share buybacks.
I don't like how government regulation changed the last decades, specially that Roosevelt's Glass-Steagall act got repealed.
If one argued that no equity is not enough one got to hear about the wisdom of the crowds and that the markets know best. As reason doesn't help I hope at least one or better both go bankrupt. I see no other way to bring back proper regulation.
Stock buybacks and dividends are both spent from the excess after business needs are met. They are part of the profits that investors initially bought an ownership share in the company for.
The stock buy backs at Boeing was not done out of excess cash or capital. Boeing went straight to the brink, going for no or negative equity. That is going for the foundation of the company. Liabilities are not longer covered by assets. Add to that, that because in program for cost accounting the deferred cost are booked to assets, a big part of the booked assets are non existing. Real equity at Boeing is about 30 billion USD negative. So it would have been prudent to not do 35 billions of the stock buy backs in the last 6 years. 8 Billion would have been prudent, 43 billion is burning the foundations.
Having a healthy equity, is exactly necessary when a major disaster happens. Boeing used the good times to burn its cash or better capital. It seems that the gamblers at the casino called stock market always forget that there will be bear market coming one day.
People sometimes forget that stock buy backs were banned until the Regan area. There were good reasons for that. We have seen what loosening of all controls, agreed upon after the great recession, have done to the financial markets. Dividends are the proper way to compensate shareholders.
I wanted to write some more, but I don't know how to write it better than that.