Boeing Cuts 737 Jet Output 19% as Global Groundings Drain Cash

[tacobell fan]

Boeing Co. is cutting production of its 737 jetliner for the first time since the Sept. 11 attacks as the planemaker works to limit financial damage from the global grounding of its newest and best-selling aircraft model.

 

By slashing output 19 percent -- to 42 airplanes a month by mid-April -- Boeing will be able to reduce its spending on the 737 and preserve cash. As work slows in a Boeing factory south of Seattle, two key suppliers, CFM International and Spirit AeroSystems Holdings Inc., indicated they would continue full-tilt at the current record pace.

Boeing Chief Executive Officer Dennis Muilenburg outlined the plan Friday as the company ramps up efforts to restore public confidence in the 737 Max and the planemaker’s commitment to safety after two of the aircraft crashed within five months. Boeing is facing criminal and Congressional probes stemming from the disasters. To help quell concerns, the company’s board named a committee dedicated to reviewing the design and development of its aircraft.

“Safety is our responsibility, and we own it,” Muilenburg said in a statement Friday after the close of regular trading. “When the Max returns to the skies, we’ve promised our airline customers and their passengers and crews that it will be as safe as any airplane ever to fly.” Even at the slower production pace, Boeing faces about $3.6 billion in quarterly losses, said George Ferguson, an analyst with Bloomberg Intelligence. As it continues to build planes, the company is foregoing payments from customers who aren’t able to take delivery because of the grounding.

[tacobell fan]

https://www.bloomberg.com/news/articles/2019-04-05/boeing-to-cut-737-production-by-19-as-crash-halts-deliveries

[Android_Halwa]

almost 6000 planes backlog vundi...cheti ninda pani..

b737 and a320 have been fighting over supremacy in the narrowbody market...

inkonni days itlane pothe airbus may gain upper hand...a320neo bagane successful ayindi...

[tacobell fan]

3 minutes ago, Android_Halwa said:

almost 6000 planes backlog vundi...cheti ninda pani..

b737 and a320 have been fighting over supremacy in the narrowbody market...

inkonni days itlane pothe airbus may gain upper hand...a320neo bagane successful ayindi...

they are missing fundamentals when competing for no reason. There are just two giants in the space and they still behave like too much competition. When China enters the space later they understand how good they were so far.

[Android_Halwa]

5 minutes ago, tacobell fan said:

they are missing fundamentals when competing for no reason. There are just two giants in the space and they still behave like too much competition. When China enters the space later they understand how good they were so far.

China has entered the market with its version of narrow body...comec c-919 but by the time COMAC receives any other order from non cinese airliens, it may have lost out on the game already...

Instead of COMAC, I think Bombardier and Embraer might take the lead in narrow body...

Already Bombardier's co-operation with Airbus for marketing of A220