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According to the BBC article at https://www.bbc.co.uk/news/world-us-canada-56149894 https://www.bbc.co.uk/news/world-us-canada-56149894, "Boeing has recommende
by jfk13 6y ago
According to the BBC article at https://www.bbc.co.uk/news/world-us-canada-56149894 https://www.bbc.co.uk/news/world-us-canada-56149894,
"Boeing has recommended grounding all 777 aircraft with the same type of engine". So this isn't just a few airlines or an individual country.
- JohnJamesRambo 6y agoChecks stock. Only down 2.0%. The current nutty index fund driven stock market, folks.
- alkonaut 6y agoWhich stock? P&W? Airlines? Boeing? Boeing doesn't seem to be at fault here. The particular engine is from P&W and they make engines for Airbus and others as well. I can't see how any of this should be extremely negative long term for neither boeing or P&W.
- jerf 6y agoThis sort of thing isn't good news, certainly, but it's not that exceptionally bad, either. This sort of thing is happening on a low level all the time, it just doesn't always make the non-aviation news.
- MattGaiser 6y agoGiven that the problem is with the engine, which Boeing did not build, why would Boeing stock be down?
- xxpor 6y agoFun fact: United Airlines, Pratt and Whitney, and Boeing used to all be the same company. They were forced to break up after the Air Mail Scandal: https://en.wikipedia.org/wiki/Air_Mail_scandal https://en.wikipedia.org/wiki/Air_Mail_scandal United Technologies is the result of the manufacturing interests east of the Mississippi and Boeing got everything west.
- kayfox 6y agoIndeed, 88 years ago Boeing made an agreement with the US government not to make certain aircraft parts (engines mostly) and not to operate any airlines. Those ugly freighters they built for the 787? Flown by Atlas Air.
- worker767424 6y agoBecause people like GP see "Boeing" and "engine failure," assumes Boeing was at fault, and sells or shorts. It makes sense if you don't realize Boeing doesn't make the engines for these planes.
- JohnJamesRambo 6y agoAre you saying grounding Boeing planes is GOOD or neutral for Boeing, but definitely not a negative?
- dawnerd 6y agoBoeing has already been beat up a lot of past plane groundings so I’m not sure an issue out of their control would do much. It just sucks for them to be in the news again for airworthiness. I might considering investing in them right now to be honest.
- tzs 6y agoThere are a total of 69 of these planes in service worldwide, and another 59 in storage. Why would you expect grounding 128 planes, nearly half of which weren't even being used, due to a problem with a part that Boeing doesn't even produce, to affect Boeing stock?
- dicomdan 6y agoThey'll check the engines for a specific defect and have them back in the skies in a few weeks.
- yoran 6y agoTrading sets prices, not AUM. Index funds do less than 5% of trading. 95% of trading still happens by active investors. So it's active investors who've decided that Boeing is worth 2% less than yesterday. Index funds have almost nothing to do with that.