Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
Boeing 737 MAX
Companies and corporations

The Boeing 737 MAX was one of the reasons why the profit of the American air giant decreased

06.11.2020
2 min read

Why the Boeing 737 MAX caused the company losses

The American aircraft building corporation Boeing presented the report for the 4th quarter of last year, and its results did not meet the expectations of experts and investors. According to the data, the company’s revenue decreased by 37% and amounts to $17.9 billion. The loss of operating activity was recorded at $2.2 billion. Unfortunately, the Boeing 737 MAX and the problems associated with it had a significant impact on the manufacturer’s business.
If we evaluate the state of the corporation for the whole last year, the figures are not so sad. According to the US GAAP financial analysis, the air giant’s revenue amounted to $76.5 billion. However, this amount is a quarter less than it was in 2018. The total annual loss was recorded at almost $2 billion.
The main problem of Boeing is the liquidity deficit, which has reached a large size. The corporation closed the year with negative operating funds, it was -12 billion dollars. In order to improve the situation, the company asked for help from various banks to provide a loan of $12 billion for 2 years. Such financial giants as Bank of America, Wells Fargo, JP Morgan Chase and others agreed to the terms of Boeing.

Boeing 737 MAX

The credit money will be used to optimize the production of Boeing-777-9X. This model belongs to the wide-body aircraft type and is equipped with two engines. The aircraft is being tested and already had its first test flight. Certification procedure of the aircraft will last at least one more year, and after passing all necessary stages, the aircraft will be open for purchase by airlines. Boeing Corporation has already received 377 preliminary orders for the aircraft production.
The problem with the Boeing 737 MAX remains unresolved. At the end of 2019, the aircraft giant froze the production of this model, as its re-certification is due this spring. If the management’s expectations are met, the 737 MAX will return to full operation in June. However, the situation around the aircraft is ambiguous, and experts do not have full confidence that everything will go well.
Initially, the Boeing 737 MAX aircraft found problems with the MCAS system, as a result of which their flights were suspended. After the airliner checks started, and the on-board computers of the two planes could not communicate with each other during the next test flight.
Stoppages in production and operation of the Boeing 737 MAX had a negative impact on the Corporation and its customers. Supplies of American planes fell by half, and it was necessary to reduce about 3 thousand employees.

Tags: Companies and corporations
0
Previous Post Investors demand for the dollar drops: overview from Chaslau Koniukh Next Post Brian Chesky, the founder of the online platform Airbnb, came to success

You Might Also Like

Best Buy Co. Inc
Companies and corporations
Best Buy Co. Inc: the way from a small store to the largest retail chain
05.01.2021
AMD
Companies and corporations
How the American semiconductor manufacturer AMD was founded
29.11.2022
Glencore International
Companies and corporations
Glencore International: the company sector and structure
06.12.2020
DowDuPont
Companies and corporations
DowDuPont Corporation: from gunpowder production to industrial safety solutions
11.10.2022
Kärcher
Companies and corporations
How the German company Kärcher appeared: the main stages of development
09.06.2022
Thermo company
Companies and corporations
Thermo Fisher Scientific company: overview of education and field of activity
04.07.2021

Recent Posts

  • 1Brookfield
    Brookfield and Closed Loop create the largest recycling company in the U.S.
    30.01.2023
  • 2Bybit
    Cryptocurrency exchange Bybit provided information about the volume of stored assets
    29.01.2023
  • 3Apple Search
    Apple Corporation is working on its own search engine, Apple Search
    28.01.2023
  • 4Tom Ford brand
    Estee Lauder made a deal to buy the fashion brand Tom Ford
    27.01.2023
  • 5Golden Visa
    The Golden Visa program has brought Portugal more than 6 billion euros during its existence
    26.01.2023

Popular Posts

  • Skolkovo analysts: the Russian energy market is suffering losses
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Estee Lauder made a deal to buy the fashion brand Tom Ford

Social media

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Spokesperson
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Spokesperson
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Spokesperson
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Spokesperson
16.05.2020

Latest Posts

Brookfield
Brookfield and Closed Loop create the largest recycling company in the U.S.
30.01.2023
Bybit
Cryptocurrency exchange Bybit provided information about the volume of stored assets
29.01.2023
Apple Search
Apple Corporation is working on its own search engine, Apple Search
28.01.2023

Chaslau Koniukh

Expert Chaslau Koniukh

Chaslau Koniukh – an expert in marketing and project management, IT consulting, international investments, investor, financial analyst. A commodity trader, private consultant, entrepreneur, lecturer, author of several articles on the stock market.

Popular Posts

  • Skolkovo analysts: the Russian energy market is suffering losses
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Estee Lauder made a deal to buy the fashion brand Tom Ford
  • Fred Smith: the man who gave the world express delivery
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram
  • Biography

Chaslau Koniukh – an expert in marketing and project management, international investments, financial analyst.

Social media

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics