philidor
in service - 6 years
Posts: 8,950
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Post by philidor on Oct 28, 2019 9:15:29 GMT 1
Regarding cash, Boeing is burning through it fast. They raised 10 billions USD through loans this year and they are gone. Regarding profit, I assume they are deferring production cost on the 737MAX without there being talk about it. Boeing will not be finished shedding cash, so yes, I think they do not have the means to run an expensive development program as it is. I think the huge amount of cash spent on stock buy backs, down to having zero equity, is coming home to roost. Let's not forget that Boeing has been building a huge fully sold inventory. As soon as the MAX is back into the sky, that inventory will begin to translate into revenue, and loans will be paid back progressively. Whether the inventory is delivered in one year or more doesn't matter much, Boeing will turn its financial situation around soon. That's why the MAX production rate has been kept at such a high level. In the grand scheme of things, the financial losses generated by the catastrophes and the MAX grounding will soon be looked upon as a one-off, though Boeing will keep struggling for a while to meet its MAX delivery commitments to customers. Boeing should also bear higher insurance premiums and some permanent loss of reputation. A major unknown is whether the MAX market value will be permanently affected. So, I think Boeing has no problem to complete 777X development, and could soon undertake a new aircraft development if a good opportunity existed. Whether the NMA is a sound project is another question. |
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mjoelnir
in service - 2 years
Posts: 4,089
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Post by mjoelnir on Oct 28, 2019 9:36:03 GMT 1
Regarding cash, Boeing is burning through it fast. They raised 10 billions USD through loans this year and they are gone. Regarding profit, I assume they are deferring production cost on the 737MAX without there being talk about it. Boeing will not be finished shedding cash, so yes, I think they do not have the means to run an expensive development program as it is. I think the huge amount of cash spent on stock buy backs, down to having zero equity, is coming home to roost. Let's not forget that Boeing has been building a huge fully sold inventory. As soon as the MAX is back into the sky, that inventory will begin to translate into revenue, and loans will be paid back progressively. Whether the inventory is delivered in one year or more doesn't matter much, Boeing will turn its financial situation around soon. That's why the MAX production rate has been kept at such a high level. In the grand scheme of things, the financial losses generated by the catastrophes and the MAX grounding will soon be looked upon as a one-off, though Boeing will keep struggling for a while to meet its MAX delivery commitments to customers. Boeing should also bear higher insurance premiums and some permanent loss of reputation. A major unknown is whether the MAX market value will be permanently affected. So, I think Boeing has no problem to complete 777X development, and could soon undertake a new aircraft development if a good opportunity existed. Whether the NMA is a sound project is another question. The compensation of airlines is still completely open, both for grounded frames and delayed deliveries. Part of the price of the stored frames have already been paid. Boeing has booked huge advances and progress billing to the tune of 53 billion USD. Boeing has cut production from 52 to 42 frames a month, so even though the inventory is high, deliveries will still be curtailed. The cost of getting all those stored frames ready, will also cut cash flow. |
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Post by kevin5345179 on Jan 23, 2020 0:01:50 GMT 1
Calhoun just hit reset/kill NMA
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Post by fanairbus on Jan 23, 2020 8:54:33 GMT 1
Boeing to take another ‘clean sheet’ to NMA with focus on pilots By Jon Hemmerdinger23 January 2020 www.flightglobal.com/air-transport/boeing-to-take-another-clean-sheet-to-nma-with-focus-on-pilots/136296.articleBoeing is taking a fresh look at the design of its so-called New Mid-market Airplane due to changes in the global aviation market and heightened focus on pilot-aircraft interactions. “We are going to take, probably, a different approach,” Boeing chief executive David Calhoun says on 22 January in response to questions about the NMA. “We are going to start with a clean sheet of paper, again.” ... “We might have to start with the flight control philosophy before we actually get to the airplane,” Calhoun says of NMA development. Design decisions related to “pilots flying airplanes” are “very important… for the regulator and for us to get our head around”.
Love the picture enclosed - looks like the B787!
Re highlights (me): Hmmm, yes!
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philidor
in service - 6 years
Posts: 8,950
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Post by philidor on Jan 23, 2020 11:44:31 GMT 1
The message seems to be that Boeing is now starting from zero.
I don't buy what is said about flight control philosophy and the regulator, which seems to be communication to convey the impression that Boeing is changing for the better. Actually, any new design offers an opportunity for innovation in flight control, but mentioning that concern now may help to explain the quasi-cancellation of the NMA and the now remote prospects of introduction of a new design.
What I find interesting is the mention of the Chinese market. The NMA's reduced freight capacity would indeed have been a disadvantage on that market.
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Post by kevin5345179 on Feb 12, 2020 21:41:44 GMT 1
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philidor
in service - 6 years
Posts: 8,950
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Post by philidor on Feb 13, 2020 0:40:12 GMT 1
That's definitely an entirely new tone from Boeing !
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Post by FabienA380 on Feb 15, 2020 9:27:21 GMT 1
I find it interesting that Boeing since a few months already speaks about "MAX replacement", as it is just very new out of the factory and not even fully developed/matured yet (MAX7,MAX10 not even had EIS yet).
As opposed to Airbus who is in full deployment of still developing it's good old product the A320family, and that orders show "Everybody" wants.
Has Boeing entirely gone the wrong way?..
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philidor
in service - 6 years
Posts: 8,950
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Post by philidor on Feb 15, 2020 13:08:49 GMT 1
I find it interesting that Boeing since a few months already speaks about "MAX replacement" I haven't heard that from Boeing ! That would be suicide ! No matter what the media and analysts are saying, Boeing must say just the contrary as customers want the MAX now, not the promise of something else in eight years. |
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Post by kevin5345179 on Feb 16, 2020 7:00:29 GMT 1
I find it interesting that Boeing since a few months already speaks about "MAX replacement" I haven't heard that from Boeing ! That would be suicide ! No matter what the media and analysts are saying, Boeing must say just the contrary as customers want the MAX now, not the promise of something else in eight years. I actually think chasing after XLR is suicide as well. It'll be more or less clean sheet with ton of upfront RD cost and late EIS + new production line. I don't see how price can be competitive against XLR though given how big the market is out there now. Airbus also has "YLR" card in hand... |
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