For the US aircraft manufacturer, it comes a year after the first 737MAX crash just thick. Now the profit slumped by half. Can bring a new Top-Management of the turn?
So many bad news at once, as in these days has a self-digest is a global Corporation like Boeing rarely. The biggest crisis in the 103jährigen history of the company there is currently. On Wednesday, the Figures for the third quarter were presented to the winning is broke in half. The civil aircraft division alone recorded a loss of $ 40 million, while they had made in the first quarter of 2018, a two billion Dollar profit.
The results were even lower than the already muted expectations of Wall Street. There is legitimate concern that the crisis could cause the company far greater economic damage than the already accrued costs of 9.2 billion U.S. dollars there. In industry circles, it goes from a potentially large set of removal, Boeing shares plunged last Friday by seven per cent and recovered in between, just a little. But something Positive, the analysts were able to gain the latest Figures, apparently, but: With a plus of three percent of Boeing were papers of the Top performers in the Dow Jones Index.
Clear evidence of crash cause
Also on Wednesday, families of the survivors of the first 737MAX received a crash when low-cost airline Lion Air has been almost a year in Indonesia, a preliminary presentation of the official investigation report has been sent, will appear on Friday. The investigators demonstrate clear defects and malfunctions, in-flight trim system, MCAS, which played in the crash, and presumably the second 737MAX-accident in March of this year in Ethiopia a crucial role. In today’s Earnings release for the third quarter, the manufacturer declares, to assume that the re-certification for the re-approval of the 737MAX start at the end of the year. Actually, the line should be already opened again, so recently the hope.
Boeing CEO Dennis Muilenburg: The right man to bring Boeing out of the crisis?
Of the recovery of the global flight operations, no one goes out before the beginning of 2020 currently. In about a year, however, Boeing announced that it would increase the current monthly production rate of 42 aircraft on 57 pieces of the 737MAX. Provided the customer keep the existing Orders and the passengers trust the world again on Board.
700 parked aircraft
The accident should have to remain in the aircraft longer on the ground, would be the threat of an interruption in production on the Boeing factory in Renton, near Seattle. That would be an extreme measure, which would throw the whole supply chains for years to come, from the rail. Currently 387 are in the world previously delivered 737MAX on the ground, and again the same number that have been produced since the Grounding and in the United States since then are parked – well over 700 aircraft in total.
On Tuesday, it was also the first high-level human victims: the head of the key civil aircraft division, Kevin McAllister, was dismissed with immediate effect and by a Boeing veteran, replaced the previous head of the Department Global Services, Stan Deal. However, this may not be the end of the personnel castling – by the end of next week, the former corporate executives Dennis Muilenburg, who lost only a few days ago his role as Board Chairman will testify in his remaining function as Boeing CEO for the first time in front of a Committee of the U.S. Congress.
And even more construction sites
It might be tight for Muilenburg, as in the ranks of the senators and deputies is a great deal of resentment has taut on Boeing’s handling of the crisis. Many, even within Boeing, in favour of a fresh start, because the 737MAX crisis has developed for Boeing in addition to the commercial harm to a gigantic PR Disaster.
In this regard, the head of the group, with its wooden, less empathic, and requirements of the lawyers-driven rare public comments will be attributed to a significant complicity in the face. And the list of current problems at Boeing is almost a day longer and goes far beyond the 737MAX also. There are so many other sites – such as cracks in key components of the still-flying 737NG series, and significant delays in the new long-haul aircraft 777X, among other things, for the Lufthansa.
First major customers such as Emirates threatened with cancellations of orders. Today, Boeing announced that the is actually already in the spring of this year’s planned first flight moves to the beginning of 2020, and the first delivery to customers at the beginning of 2021. At the same time Boeing discount make order stocks for your best selling 787 to create the production rate to decline from the end of 2020, from 14 to twelve per month.
Assembly line for the 737MAX in the factory in Renton, near Seattle
“It plays with me crazy in the Simulator”
Considerable displeasure at the FAA and in Congress in Washington last had caused which have become public documents, which seem to prove that since 2016 internal security problems with the so-called MCAS-flight control system were known. The internal E-Mail exchange between two leading Boeing’s test pilot was already presented in February of this year, so before the second 737MAX-crash in Ethiopia in March, the U.S. Department of justice, but as recently as last Thursday, the US aviation authority, FAA, national Ministry of transport, and it is the prepared of the hearing, Boeing’s chief Muilenburg in front of the Congress Committee. The two pilots in their conversation, among other things, that the MCAS System to react during your Simulator flights aggressively and unexpectedly. “It plays with me crazy in the Simulator,” writes the former technical 737 chief pilot Mark Forkner on his colleagues.
The effect of the documents in the United States was devastating. The FAA demanded an “immediate explanation” of Boeing, the most important 737MAX customer, Southwest Airlines, expressed strong criticism: “Boeing deceived pilots and authorities on the safety of the 737MAX. It is clear that the negligent and cheater exposed of behaviour of the company the flying audience risks,” said the President of the pilot Association of the company, Jon Weaks. The Chairman of the appropriate Committee in the house of representatives Peter de Fazio, ranted: “this is the failure of the safety culture at Boeing, where employees under undue pressure be set, to forward the plans to comply with the profitability, but at the expense of safety.”
Boeing is trying, meanwhile, with a defence strategy aimed at the 2016 of the test pilots described erratic MCAS-behavior as a pure Problem in the Simulator file and not as a Problem of a real aircraft.