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Boeing did not get into this position overnight. After the massive cost and schedule overruns on the 787 program, they were far too cash-poor to fund the deve
by slacktide 6y ago
Boeing did not get into this position overnight. After the massive cost and schedule overruns on the 787 program, they were far too cash-poor to fund the development of a clean-sheet design, hence the re-warmed 737. The 787 itself was a huge experiment in outsourcing both the costs and risks of aircraft development. It turns out you can outsource cost, but the prime contractor always owns the risk. Dr. John Hart-Smith published an excellent white paper warning of this while the precursor to the 787 was still in development, shortly after the Boeing-McDonnell Douglass merger.
https://www.google.com/search?q=Outsourced+Profits+%E2%80%93+The+Cornerstone+of+Successful+Subcontracting https://www.google.com/search?q=Outsourced+Profits+%E2%80%93...