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

Berkshire Hathaway
Companies and corporations
The success story of the company with the most expensive shares – Berkshire Hathaway Inc
09.07.2020
PNC Financial Services Group
Companies and corporations
Financial Corporation PNC Financial Services Group
24.02.2021
Swiss watchmaker Rolex
Companies and corporations
The main achievements of the Swiss watch company Rolex
25.09.2022
Hewlett-Packard
Companies and corporations
Significant devices given to the world by Hewlett-Packard Corporation
08.08.2022
Agricultural Bank of China
Companies and corporations
Agricultural Bank of China is one of the giants of the Chinese banking industry
26.12.2020
Lenovo Group
Companies and corporations
Lenovo Group: the history of the famous electronics brand
20.05.2022

Recent Posts

  • 1Mary Erdoes
    Mary Erdoes: the most powerful woman on Wall Street
    02.06.2023
  • 2Pilatus Aircraft
    Pilatus Aircraft: the history of the Swiss aircraft manufacturer
    01.06.2023
  • 3investment triangle to select a particular asset
    Investment triangle: how to choose the best asset for investment
    31.05.2023
  • 4Nissan and Renault
    Nissan and Renault invest $600 million in a joint venture
    30.05.2023
  • 5Noventiq
    Noventiq plans to float on the Nasdaq exchange
    29.05.2023

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Skolkovo analysts: the Russian energy market is suffering losses
  • How Lillian Vernon managed to create an empire by relying on her intuition

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

inflation in the UK
Inflation in the UK will decline: analysts’ forecasts
03.06.2023
Mary Erdoes
Mary Erdoes: the most powerful woman on Wall Street
02.06.2023
Pilatus Aircraft
Pilatus Aircraft: the history of the Swiss aircraft manufacturer
01.06.2023

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

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Skolkovo analysts: the Russian energy market is suffering losses
  • How Lillian Vernon managed to create an empire by relying on her intuition
  • The Bumble app plans to go IPO: more details
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