Boeing planes are waiting for parts as its 737 Max and 787 planes are on the ground and cannot make trips at present. The delay has already cost the company billions; each day, it adds to that growing total.
Why Are the Planes Grounded?
Boeing models 737 and 787 cannot fly their scheduled trips as the company waits for parts. The Boeing 737 Max has undergone some changes.
Shortage of Parts
Over 200 aircraft have been completed but are still missing important elements before they can be cleared to fly.
Repercussions
As a result, Boeing has taken a hit and already lost $1 billion in potential flights with their new aircraft. The Independent reported findings from the Wall Street Journal that some planes were missing interior components and needed engine parts.
Limited Storage
Several planes are grounded in employee parking lots, outside plants, and in airfields. These destinations are just some of the places the company is storing their planes, The Independent reported.
No Space To Keep Aircrafts
Because of the parts delay, the company has, at the same time, run out of space to store their crafts until they can complete them.
Working Towards Getting Aircrafts Moved
A spokesperson for Boeing shared that they were working to complete the aircraft and move out of the parked spaces. In addition, the spokesperson also said that the planes parked had nothing to do with a drop in aircraft production.
Delayed Deliveries
As a result, it’s delaying the delivery to countries that have ordered 737s and 787s. Some airplanes are supposed to head to different countries for delivery. China is also waiting for the delivery of the new Boeing.
When Will They Commence Delivery?
An analyst of The Bank of America, Ron Epstein, has said that the planes cannot stay grounded in storage for too long.
“Fixing” Bowing Will Take Years
Epstein told CNBC that “fixing Boeing would take several years.“The company has juggled many controversies regarding safety and other issues, and all these factors are still forming part of Boeing’s image.
Distrust of the Company
CNBC also said that the public may now have a “distrust” towards the company regarding safety.
Grappling Free Cashflow
CNBC also reported that, in addition to Boeing’s already challenging conditions over the years, there have been “free cash flow” concerns.
More Public Safety Woes
Boeing has often been tied to safety issues for a long time. The Stumo and Kuria families are just two of the 157 passengers families affected by the Ethiopian 757 Max 2019 crash.
Recent Safety Issues
In January of this year, the company again experienced a safety issue with the Alaska Boeing 737 Max 9 that caused an emergency landing in Portland, Oregon. The aircraft had a hole in the fuselage soon after the plane took off.
Grounding All 737 Max 9s With Similar Feature
The FAA (Federal Aviation Administration) grounded all 737 Max 9s, with the same door feature as the grounded one. Fortunately, there were no fatalities.
Two-Fold Expense
Storing planes also costs the company millions, not only in lost flights but also in storage rentals.
Aircraft Delivery Doesn’t Look Well
Boeing has taken another hit while losing funds as its aircraft delivery has taken a “nose dive.” The Independent reported the company only doing an estimated 90 deliveries, which was considerably lower than last year.
Delivery of Boeing Jets 2023
According to Flight Plan Forecast International Statistics, the company delivered an estimated 24 Max jets in April 2024. The total included x16 737s, x2 767s, x2 777s and x4 787s. In 2023, the company managed to deliver 38 jets each month.
Boeing and Airbus
Flight Plan Forecast International reported that Boeing delivered around 528 aircraft while Airbus delivered 735 in 2023. However, the numbers were down in 2022, with Boeing delivering 480 aircraft and Airbus pushing out 663 aircraft deliveries that year.
Thus Far
A spokesperson for Boeing has reassured that they have already freed up lots of space in the lots where they’ve parked their aircraft. “We’ve delivered hundreds of 737s and dozens of 787s from recent years,” the spokesperson said.
Losing Stock Shares
According to Epstein, Boeing shares have gone down, and the company has a “workforce they have to negotaitae with.” Amongst all the other problems the airline faces, even replacing management won’t resolve some of the concerns. “It will take more than one year or two years, it could take five to seven years, “ Epstein said.
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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
