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Question: how much would it cost Boeing if the 737 MAX was never allowed to fly again? Could it bring them down, on the brink of bankrupcy, or is it something t
by K0SM0S 7y ago
Question: how much would it cost Boeing if the 737 MAX was never allowed to fly again? Could it bring them down, on the brink of bankrupcy, or is it something they could stomach?
- SteveNuts 7y agoWithout "doing the math" - I'd say they'd get bailed out by the US government since Boeing is a huge provider of military hardware.
- lucb1e 7y agoI expect they don't need bailing, they do so much more than a single airplane model.
- favorited 7y agoI agree that it would be unlikely to tank enough that it needs a bailout, but it could significantly hurt. They have a large stock of undelivered 737 MAX airplanes (~400 brand-new planes sitting in parking lots), and wouldn't be paid for them. They also wouldn't be able to deliver on any existing 737 MAX contracts.
- zelon88 7y agoYou never know. Companies like Boeing create LTAs with their suppliers, agreeing to specific pricing over many numbers of years. Most of these contracts are written with language that if a part is no longer required that Boeing must still buy out the LTA. Basically, Boeing must buy parts for the 737 Max from suppliers even if they can never build another plane! Either that or the suppliers who make parts for the 737 will have to eat all the WIP and inventory costs which would be just as devestating to the domestic manufacturing market as if Boeing itself went under. Aerospace is a yuuuuuge market for American Manufacturing. It's one of the only manufacturing markets that China is unable to compete in.
- K0SM0S 7y agoHa, that's the answer actually, what it'll come down to if it must. Thanks for the insight.