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Boeing displays some optimism despite financial setbacks

Boeing displays some optimism despite financial setbacks

| Jun 8, 2020 | Aviation Law |

To say the first half of 2020 has been volatile for the air travel industry would be an understatement. However, Boeing has faced arguably more challenges than others.

Boeing started the year by stating that it lost more than $630 million in 2019, which is also the company’s first annual loss since 1997. This came after the company faced intense scrutiny over two 737 Max planes that crashed, killing 346 people in total. In January, Boeing halted production of the 737 Max, after regulators demanded the planes be grounded in the spring of 2019. Shortly after this, Boeing, as well as other airlines, faced unprecedented financial challenges due to the COVID-19 pandemic. Barron’s reports that the number of U.S. passengers flying is still down more than 85%.

Turning a new leaf

Despite the recent chaos, optimism over the potential return of air travel has contributed to a recent surge in Boeing stock. Company leaders are now looking to move things forward. Since taking over in early 2020, Boeing’s new CEO, David L. Calhoun, seems to have a sense of practical optimism. Mr. Calhoun said they are looking to get the 737 Max up and running and form a plan to restore trust and reliability with travelers.

There is no exact timeline for when the 737 Max planes will be back in the sky. The company has built and parked about 450 Max jets within the past year. While Boeing says deliveries of new jets will resume by the end of the summer, global aviation authorities still have not approved the fixes made to the jets.

Complex malfunctions can lead to simple assumptions

Commercial planes are highly specialized and extremely technical. Because of this, it can be difficult for even those who work with them to fully understand how they operate. When malfunctions do occur, it can only take one incident to break consumer trust.

If that’s the case, aircraft manufacturers will want credible representation. An experienced aviation attorney can help analyze the facts and legalities in these complex cases and break them down to make sense to a jury.