Thread regarding Boeing Co. layoffs

Not a good business model

Delivering their 737Max inventory has been artificially propping Boeing up for past year or so and keeping their quarterly reports from being even more dismal than they would be...if that is even possible... Boeing can't deliver newly manufactured airplanes at even close to a positive profit margin given the low price they sold them. So as Boeing gets further into their quickly shrinking airplane backlog, they will be losing even more money with each airplane delivery. Not a good business model if you want to stay in business...

Airbus was very wise to avoid playing this game and they now don't have to given their modern airplane designs, huge market share advantage and huge airplane backlog compared to quickly fading Boeing products.

Well said, @1iqu+1iE894AA.

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| 1111 views | | 2 replies (last September 18, 2022) | Reply
Post ID: @OP+1iKH91bf

2 replies (most recent on top)

Yes, that would appear to be exactly the situation. When the government offered Boeing a handout a couple years ago to help with Covid and the 737Max fiasco in lieu of taking the private bank loans that now burden Boeing with huge debt, Boeing declined the government offer because it came with a condition that would limit how they used the handout money. It has become clear that Boeing leadership is more focused on their bonuses and severance packages than improving Boeing competitiveness or product safety. So staying in business long term is NOT the leadership primary objective.

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Post ID: @2cnz+1iKH91bf

Yup, but I don’t think the leadership at Boeing is planning to stay in business for much longer. At this point, they are just sucking what money they can out of the company to benefit themselves.

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Post ID: @1lhb+1iKH91bf

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