By Aaron Gregg and Aaron Gregg Reporter covering the defense industry and government contractors. Email Bio Follow Christian Davenport Christian Davenport Reporter covering the defense and space industries Email Bio Follow March 11 at 10:57 PM Boeing’s 737 Max jet found a sweet spot for the company’s growing base of customers around the world: It’s a best-selling workhorse with low costs, minimal upkeep and an ability to cram in more passengers.
It is not clear why Ethiopian Flight 302 fell from the skies six minutes after takeoff Sunday on its way to Nairobi. The investigation has just begun. But the crash, which killed all 157 people on board, puts the spotlight on Boeing, which already faced scrutiny for its October crash in Indonesia and concerns that a software update to the 737 could make it hard for pilots to override a malfunctioning autopilot system when it steers the plane into a nosedive.
While investigators descended on the crash site trying to determine what happened, China, Indonesia, Brazil, Singapore and Ethiopia grounded the planes. Investors battered Boeing’s stock, which fell more than 12 percent in early trading Monday before rebounding and finishing the day down 5.4 percent, a sign of investor confidence in the stalwart company.
And in a recent speech Dennis Muilenburg reportedly stressed how key China is to its bottom line, saying that while the company “is doing well there” it remains “important that we have a productive relationship.” Boeing has nearly 3,000 orders for the Max 8 version of the plane, according to Boyd’s analysis, with China expected to be a significant purchaser. But now “they could lose some of that business," Boyd said."Everybody has a lot on the line. Boeing needs China. China needs Boeing, too.”
The updated software was meant to make the plane safer, by accounting for minor design changes to its engines. But pilots said a Boeing decision not to include the new system in pilot training left them “in the dark” about how to respond in an emergency. The crash comes as Boeing’s commercial business has been surging, even after the October crash. And with a backlog of 5,900 airplane orders, or about seven years of production, that is valued at $412 billion, Boeing predicted continued growth in 2019. In December, Muilenburg told CNBC that the “airplane is safe. We’re very confident in that.” He touted the aircraft, which he said was designed so that additional training would be kept to a minimum on it.
It is also building the next Air Force One, a spacecraft to ferry astronauts to the International Space Station and a monster rocket that NASA says will one day take them to the moon.
AP Reuters WSJ business Coincidence? Ask what do Indonesia and Ethiopia have in common. Indonesia and Ethiopia are both growing economic markets for Chinese products. The Chinese made C919 is a new Chinese made aircraft to compete with the 737.
Selling a plane that crashes will do that to you.
DanLamothe Arrogance brings Disaster
DanLamothe It’s life as a Company is at risk if they continue refuse to move only possible direction. NOW
Boeing didn't explain their new automatic stall controls in manuals or training. Apparently this safety feature has so far only killed people, not saved them. Pilots are supposed to disengage when it kicks in? The problem is a feature not a bug.
Yes, when almost 400 lives are lost and their families pushed into a lifetime of bereavement and sorrow, reputation is not at risk, but lost.
Need to give clear view
The Boeing 737 Max is Boeing's attempt to replace the iconic B757, and it is falling miserably. It still can't match the range, cargo and passenger capacity of the B757.
Jury still out until investigation of latest crash
nah. count all the successful boeing flights in history. you'll have a good sense of how safe it is.
The manufacturer should not be blamed for now it's too early till after investigations.
Has. Not had.