In 2019, Airbus beat Boeing in total aircraft deliveries. If Airbus had never succeeded in surpassing its rival Boeing with such a large difference, after the stoppage of the production of the 737MAX and the deliveries of this aircraft model, the deliveries of aircraft until November 2019 by Airbus are much higher, 725 aircraft delivered by the European company compared to 345 by Boeing.
For the first time in history Airbus has surpassed aircraft deliveries in such a spectacular way to its American rival. However, Boeing's problem is not that his rival delivers more units than they do (In 2018 they were almost equalized), the problem is that their best-selling 737 in its last iteration (737MAX) has not been manufactured for months, it is not wanted and its customers seem to start looking for alternatives in the competition.
The (many) problems of Boeing
After the terrible accidents in which 346 people died and that this plane model is not allowed to fly in the three major geographies (China, Europe and the USA), this model of plane remains parked in various parts of the world. The company continued to manufacture them despite not having solved the security problem, even having to store them in the parking lots of employees, because they did not fit anywhere else. However, when the situation was unsustainable, they had to suspend the manufacture of their most successful model.
The measures have not served yet the Boeing 737 MAX did not just take off. Boeing client airlines like Delta and Southwest They don't count on them until June, and hopefully. A few days ago a problem has been re-located with the software of these planes, so the reapproval cannot be done until March or April. That will cause these planes to remain on the ground for at least one year. In addition, Boeing has announced that it will have to rewrite its 737MAX software beyond what is expected, given that the two flight computers did not communicate when the plane was turned on.
In addition to a revelation of hundreds of emails from employees that Boeing has delivered to the authorities, there are employees who claim that the 737 MAX was an airplane designed by clowns supervised by monkeys. Even employees who said they wouldn't put their families in 737MAX piloted by pilots trained in the simulator. The question is What passenger will want to get back on a Boeing 737MAX?
The 737 MAX has not been the only model with which there are problems in Boeing. The next 777x model, successor of the successful long distance 777 aircraft, has been delayed again. That makes some big airlines even change their plans, as Tim Clark said, the CEO of Emirates, could convert those orders into 787s, smaller and cheaper.
In addition these delays are surely delaying the new model that Boeing is developing, the expected 797 that would be a substitute for the 757 models
and 797 that some airlines treasure for long-haul flights but with a lower demand than the wide-body aircraft (double aisle 787 and A330). At the moment, the only aircraft similar to this model would be the Airbus A321 neo, although it is not exactly a model designed for these needs, but is a variant of its successful A320neo.
There are also sources according to which Boeing may be losing part of the Asian market in the coming years. Xiamen Airlines has opted for A320neo. Malaysia Airlines has canceled your 737MAX order because you don't know when they will fly again. Even It seems that they will not do well on the 8,000 planes that China will need in the next 20 years. All this without counting that the Shanghai Comaq company already has its competitor ready to face the two aviation giants, although with little success at the moment.
Boeing is a brutally important company for such a large economy As is the United States. To get an idea, the production suspension of 737 MAX is estimated to be 0.5% slowdown in US GDP. The Bering 737 MAX that are parked and cannot be delivered because they cannot fly with passengers, They account for 18% of the inventory of durable goods of all US companies.
Interestingly, there is no punishment in the stock market
Given these perspectives, one would assume that the company would have fallen a lot in the stock market, but the truth is that not. If a year ago the company was around $ 355, in mid-January it is around 325. It is true that it reached 440 before the 737 MAX accidents, but it does not seem excessive punishment.
In fact, I have once seen conversations in social media comments stating that it was a good time to buy Boeing shares, due to its low price. I think that if one looks at the historical price of the company, it will not seem that the opportunity to buy cheap Boeing is so great.
In addition, Airbus shares are also not spectacularly revalued, as we commented in the past, Problems affect the entire industry, not just one company.
Ask the readers Do you think the problems of Boeing are as serious as they seem? Do you think the company's price is overvalued for the problems it has or is there a potential for it to rise?
Image | lynothehammer1978
Image | lynothehammer1978
Image | ukinspiredphotos