Name: Boeing: The Story Behind the Company's Financial Trouble
Uploaded: 2019-12-19
Duration: 4 min 12 s
Description: A timeline of how the 737 crashes impacted Boeing in more ways than one.

 Boeing. Authorities say a Lion Air passenger plane carrying 189 people has crashed into the sea. Breaking news-- an Ethiopian Airlines flight has crashed shortly after takeoff from Addis Ababa, killing all 157 passengers and crew thought to be on board. The world's largest aircraft manufacturer rocked the airline industry and instilled fear in players all over the world after two fatal crashes in five months. Up until these accidents, the 737 Max was the fastest-selling airplane in Boeing history. From the time it was announced in 2011, Boeing secured more than 4,700 orders for the plane from more than 100 customers. The Max fleet flew the skies for over two years before being grounded worldwide in March 2019. We're going to be issuing an emergency order of prohibition to ground all flights of the 737 Max 8 and the 737 Max 9. Now, Boeing is facing escalating bills, numerous legal threats, and a crisis of public confidence. Boeing operates four divisions-- Boeing Commercial Airplanes, Boeing Defense, Space, and Security, Boeing Global Services, and Boeing Capital Corporation. About 60% of Boeing's sales come from its commercial plane segment. So it's no surprise that the 737 crashes are hurting Boeing's bottom line. In Q2, Boeing suffered its biggest quarterly loss in the company's history. Boeing also saw a big dip in revenue in Q2 compared to last year, but classified $5 billion of that as a one-time charge related to compensating airlines affected by the worldwide grounding. Separately, Boeing has set aside over $100 million for victims' families and communities impacted. In another sign of financial trouble, Boeing delivered 104 fewer airplanes to customers in Q2. That leads to another major concern for the company-- competition. Airbus is Boeing's biggest rival. In Q2, Airbus managed to deliver more commercial planes than Boeing for the first time in eight years. So what happens to Boeing's finances from here? Boeing paints a relatively rosy picture. It says a partnership with Embraer, the world's third-largest producer of aircrafts, will help it battle Airbus. It points out that the world will need over 44,000 new planes, worth $6.8 trillion, between 2019 and 2038. And it expects to continue its reign as the world's top plane producer. But much depends on how quickly the 737 Max returns to the sky. The longer those planes sit on the ground, the more they cost Boeing. Even when the FAA clears the plane to fly again, there's no guarantee passengers will want to be aboard. Aviation experts say passengers are now afraid to fly on Boeing's 737 Max jets. 53% of American adults who were polled said they wouldn't want to get on one of these planes even when regulators say that it's safe. CEO Dennis Muilenburg says this is a defining moment for Boeing, and it truly is. 

Boeing: The Story Behind the Company's Financial Trouble

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A timeline of how the 737 crashes impacted Boeing in more ways than one.

Boeing. The authorities say a Lion Air passenger plane carrying 189 people has crashed into the sea breaking news and Ethiopian Airlines flight has crashed shortly after takeoff from Addis Ababa, killing all 157 passengers and crew thought to be on board. The world largest aircraft manufacturer rocked the airline industry and still fear and flyers all over the world after two fatal crashes in five months. Up until these accidents with 7 37 Max was the fastest selling airplane in bowling history. From the time it was announced in 2011 Boeing secured more than 4700 orders for the plane from more than 100 customers. The Max Fleet Food Disguise for over two years before being grounded worldwide in March 2019 be issuing an emergency order of Prohibition to ground all flights of the 7 37 max eight on the 7 37 max nine. Now Boeing is facing escalating bills, numerous legal threats and a crisis of public confidence. Boeing operates four divisions. Boeing Commercial Airplanes, Boeing Defense Space and Security, Boeing Global Service is and Boeing Capital Corporation. About 60% of bowling seals come from its commercial plane segment, so it's no surprise that the 7 37 crashes are hurting Boeing's bottom line in cute, you bawling suffered its biggest quarterly loss in the company's history. Boeing also saw a big dip in revenue que tu compared to last year but classified five billion of that as a one time charge related to compensating airlines affected by the worldwide grounding separately, only set aside over $100 million for victims, families and communities impacted. In another sign of financial trouble, Boeing delivered 104 fewer airplanes to customers in queue to that leads to another major concern for the company competition. Airbus, Boeing's biggest rival in queue to Airbus, managed to deliver more commercial planes and going for the first time in eight years. So what happens to Boeing's finances? From here? Boeing paints a relatively rosy picture. It says the partnership with them Brier, the world's third largest producer of aircrafts, will help it battle Airbus. It points out that the world will need over 44,000 new planes worth $6.8 trillion between 2019 and 2038 and it expects to continue its reign as the world's top plane producer. But much depends on how quickly the 7 37 max returns to the sky. The longer those planes sit on the ground, the more they cost bowling. Even when the F A A clears the plane to fly again, there's no guarantee passengers will want to be aboard. Aviation experts say passengers are now afraid to fly on Boeing's 7 37 max jets. 53% of American adults who were polled said they wouldn't want to get on one of these planes. Even when regulators say that it's safe, CEO Dennis Muilenburg says, This is a defining moment for Boeing, and it truly is.