Kikapu wrote:Paphitis wrote:
Even if the MAX does not fly again, what will happen is that Boeing will cover losses from its partners and customers, including loss of revenue. Yes it will cost them Billions but it is nothing for a company that declares 100 billion in profit every year.
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I think you are confusing Boeing’s $100B revenue with profit per year.
All of last year’s approx $10B Boeing’s Profit has been lost this year on the MAX.
Not to mention how much loss in revenue also.
It doesn't matter what it is lost. To Boeing, that is just a write off they will put on the wrong side of their financial ledger.
They are not going to miraculously disappear because they lost 10Billion.
Secondly, you don't know how much they will lose. they could lose only a fraction of that as quite clearly they are still progressing with the re-certification of the Max. Until they announce they are abandoning the project we are just speculating. They won't persist for it forever if the problems are not solvable but for now, with all the information they have released, the MAX isn't dead in the water just yet. They anticipate that the MAX will fly again but they will still be liable for losses one way or another.
But let's say they lose 20 Billion, that is a drop in the ocean against their business model and their resources. They got a lot of assets and IP worth hundreds of Billions. Their defense arm right now is actually phenomenal and quite staggering. They are even in bed with NASA and the Space Program. They own many other businesses like Jeppessen, Lockheed Martin, Raytheon, and Halliburton which also make massive profits of several Billions of Dollars. This isn't even scratching the surface as they own about 30 other companies.
This is one of the biggest companies in the world.
Sounds to me like a lot of people want them to go down. But let's think about that very carefully. They go down, and the industry goes backwards some decades and the public will pay for that because Boeing for decades has been an international leader at the forefront of innovation and extremely high standards in safety and quality. It is by no mistake Boeing have many fans the world over because their products always seem to set new benchmarks just like the B777, B787 and the new B797 which by all reports is going to be the most advance airliner in the world. They are allowed to make mistakes an Aviation is littered with mistakes. The industry is always going to kill some people just like an other mode of transport but the safety record of aviation speaks for itself.