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I bet they will stop building the 737 max and start building the 737”new model that is the max with some changes that can be retrofitted”. Like a larger stabilizer, longer frame, or maybe something easier. But something that lets them say it’s a “new” model but keeps 99% of the production line untouched and can be negotiated with the existing buyers. We’ll see how it works in some weeks.
I'm surprised that the market hasn't reacted more negatively towards Boeing regarding the Max 8 disaster. Airlines operate on razor-thin margins (~1 to 2%), and several users of the Max 8 have had significant portions of their fleet out of service as a result. Westjet [1], for example runs 124 planes currently. 13 of which are the Max 8. Over 10% of their fleet. Southwest Airlines [2], for example, runs 748 planes, 3…
> lawsuits that are surely incoming are going to pile-drive this company into the ground Legally, everyone is indemnified up the wazoo. Strategically, airlines are in a worse position if Boeing goes under. Not only do they lose the planes on order. They also lose their service and replacement-parts provider. The survivors would, in the medium-term, face an Airbus monopoly and, in the long-term, a Chinese-European duo…
We are way way far from that and if it does come close I would bet on bailouts and government intervention Boeing isn’t going to go under
The big question is why they haven't done it already? Boeing's disconnect from reality is painful to watch.
They have outstanding orders for around 5000 737 MAXes. Assuming they get them reapproved some time soon, keeping the production going to not fall too far behind their delivery schedule will likely have saved them a fortune in late-fees.
https://www.cnbc.com/2019/12/16/boeing-will-suspend-737-max-...
Boeing's official statement:
https://boeing.mediaroom.com/2019-12-16-Boeing-Statement-Reg...
The relevant part:
"Safely returning the 737 MAX to service is our top priority. We know that the process of approving the 737 MAX's return to service, and of determining appropriate training requirements, must be extraordinarily thorough and robust" ...
"Throughout the grounding of the 737 MAX, Boeing has continued to build new airplanes and there are now approximately 400 airplanes in storage."
"As a result of this ongoing evaluation, we have decided to ... temporarily suspend production on the 737 program beginning next month.
We believe this decision is least disruptive to maintaining long-term production system and supply chain health."
Note: temporarily. It's still just a pause button.
I bet they will stop building the 737 max and start building the 737”new model that is the max with some changes that can be retrofitted”. Like a larger stabilizer, longer frame, or maybe something easier. But something that lets them say it’s a “new” model but keeps 99% of the production line untouched and can be negotiated with the existing buyers. We’ll see how it works in some weeks.
Why?
But I don't think it will work, because it takes time to engineer such a modification, and more time to get FAA approval.
why continue to make the planes when you have no idea when you can actually push them out the door? given that they continued to produce the MAX while they were grounded, they must be running out of storage space...
I'm surprised that the market hasn't reacted more negatively towards Boeing regarding the Max 8 disaster. Airlines operate on razor-thin margins (~1 to 2%), and several users of the Max 8 have had significant portions of their fleet out of service as a result. Westjet [1], for example runs 124 planes currently. 13 of which are the Max 8. Over 10% of their fleet. Southwest Airlines [2], for example, runs 748 planes, 3…
> lawsuits that are surely incoming are going to pile-drive this company into the ground Legally, everyone is indemnified up the wazoo. Strategically, airlines are in a worse position if Boeing goes under. Not only do they lose the planes on order. They also lose their service and replacement-parts provider. The survivors would, in the medium-term, face an Airbus monopoly and, in the long-term, a Chinese-European duo…
Boeing "going under" just means that shareholders will get wiped out, not that they cease operations.
The big question is why they haven't done it already? Boeing's disconnect from reality is painful to watch.
As other commenters have mentioned, the order backlog is still long, so as long as you can easily store the planes, it makes sense to keep building them.
It will be difficult for Boeing to walk back the public opinion of the 737 MAX for what they have done. I know plenty of airline customers who intend to never fly a segment that utilizes one.
They’ve already taken steps to rename it to drop the MAX moniker: https://www.theguardian.com/business/2019/jul/15/boeing-737-... I highly doubt the average consumer will think twice about flying on a Boeing 737-8200, presuming they can avoid more scandals.
Nevertheless, while the flying public and Boeing may get past the MCAS issue, the next accident may be just around the corner.
Earlier quoted context omitted.
Surely a 737 Max is orders of magnitude safer than a paraglider...
The performance and safety certification of the gliders seem more trustworthy than FAA and Boeing at this point. Also it is expected to get trained for the failure modes of the wing(unlike with the 737 max, apparently). Not a dangerous sport if you don’t take risks and have proper equipment.