Boeing Tries to Win Back Investors
Boeing’s desperate demonstrations of the “fixed” 737 MAX aren’t building much rapport with unimpressed airlines. With safety claims falling on deaf aviation ears, the commercial aerospace titan is at risk of losing even more edge to European rival, Airbus.
Trust takes years to build and seconds to destroy. When two new Boeing 737 MAX airliners came crashing down to Earth earlier this year, the resulting outrage brought the company to its knees. Seen as a betrayal to flight safety, Boeing lost its 737 MAX to worldwide grounding. Things only got worse when Boeing was left out to dry by airline CEOs who huddled around Airbus at the Paris Air Show, ordering aircraft after aircraft.
The leader of the embattled plane manufacturer, Dennis Muilenburg, has personally buckled himself in for test flights in the 737 MAX. However, even putting his skin in the game doesn’t seem to be winning over many investors. Muilenburg has been tight-lipped about the financial damage of this whole debacle, with the market being made to wait until late July before seeing the 4.9-billion-dollar abyss where revenues used to be. However, Muilenburg is convinced that over 500 faultless demonstrations will prove all is well, further insisting that other Boeing employees are keen to take to the skies with him. Whatever you say, Dennis!
The 737 MAX episodes have been a thorn in Boeing’s side this year, grounding the stock just as it re-found its wings after a flat 2017. Both insiders and outsiders share financial concerns as this drags on, with investors still as reluctant as airlines to commence boarding once again.