Many of you have probably flown in an airplane. That airplane is probably made by Boeing. Yet, Boeing has recently suspended the production of the 737 MAX series of jets.
The 737 MAX Air was their best selling series of jets and is expected to make Boeing lose approximately 2.9 billion dollars. You have probably been inside one of them, as almost 10,000 were made, but who knew that they were dangerous death traps?
There have been two crashes that have left 346 people dead. Boeing has also kicked out their old CEO, Dennis A. Muilenburg, and replaced him with Dave Calhoun. The shutdown of this plane will not only lead to the loss of many jobs, but also to the loss of the falcons that lived in the hangar where they were made. The CEO of Boeing states that there will be a brief transition period, as he wants to exit his non-Boeing commitments.
Calhoun is currently the head of the private equity arm of major financial firm Blackstone, and spent nearly three decades at General Electric, which ran the conglomerate’s transportation and aircraft engine businesses. Everyone from engineers and pilots to flight attendants and passengers will be highly affected by the grounding of the 737 MAX Air. This is very terrible news for Boeing, as it will result in job cuts, money being lost, and investors getting angry.
Not only that, but these delays are having some negative impacts on airliners. For example, Ryanair issued a warning to workers such as pilots that because of the delay of the delivery of the aircraft, it was possible that they would need to start making job cuts.
The 737 MAX Air is expected to stay grounded until mid 2020, so Boeing can expect a terrible first and second financial quarter.