Boeing's MAX failure has allowed rival Airbus to swoop in and supply United Airlines, one of its loyal customers
After publication of this article, Boeing sacked its chief executive, Dennis Muilenberg, on December 23rd. He will be replaced by David Calhoun, the company's chairman, who will take up the post in January.makes up the bulk of Boeing’s revenues. Military-minded top brass of its large defence arm would be excused for seeing that business as a case study in tactical and strategic failure.
In the first nine months of the year revenue fell by 19% relative to 2018 and free cashflow turned negative . Gross debts ballooned to $25bn from $14bn at the start of the year. After raking in profits of over $5bn from January to September 2018, its airlines division lost nearly $4bn in the same period in 2019. Boeing as a whole eked out a small profit courtesy of its defence and services arms. In July it set aside $5.6bn to cover compensation to suppliers and airlines.
The company is nonetheless on the back foot. Plans to develop a new jet to replace ageing 757s have been put on hold. That has left the field to Airbus, whosedoes a similar job. In December United Airlines, a loyal Boeing customer, ordered 50 of them. Problems with the engine have delayed the first flight of Boeing’s newest 777long-haul airliner until next year.
A brand new plane would require both firms to invest billions—and could lock them into technology that forecast developments in electric-hybrid short-haul aircraft may render obsolete in a few years’ time. Airbus would rather not take that risk. If theBusiness
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