Saturday, August 3, 2019

Boeing 737 Max Problem


The first 737 Max crash was 10/29/18 in Indonesia. The second 727 Max crash was 3/10/19 in Ethiopia.

On 8/18/19, Boeing admitted that flaws in 737 MAX simulator software made the system unable to reproduce flight conditions that contributed to the crashes in Ethiopia and Indonesia

Boeing began taking orders for the 737 Max in 2011 and had 5008 ordered.  Boeing began deliveries in 2017 and have delivered 387.

Order cancellations for the 737 Max reached 216 as of 6/30/19.

Boeing revenue for 2019 has declined 35% as of 6/30/19.
Revenue for Q2 ending 6/30/19 was $15.751 billion.

2019 $92.155 billion estimate
2018 $101.127 billion
2017 $94.005 billion
2016 $93.496 billion


Boeing stock peaked at $446 on 3/1/19 and closed at $341 on 7/31/19.

Comments

Boeing got caught up in the Artificial Intelligence craze and developed software to auto-correct down-draft.

In 1993, the US DOD called for consolidation of defense contractors. Boeing acquired Rockwell Defense businesses in 1996 and acquired McDonnell Douglas in 1997. Boeing may have gotten too big to not screw up. The 737 Max problem should be a cautionary tale for all companies rushing into artificial intelligence without sufficient testing.

Norb Leahy, Dunwoody GA Tea Party Leader

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