Boeing Financial, Engineering and Brand Recovery Will Take Many Years

Boeing now hopes to have permission to fly the 737 Max in mid-2020. Boeing will likely be losing about $1 billion every quarter until it the Max is permitted to fly and for Boeing to be allowed to sell the 400 planes they have built.

Airbus already a larger backlog of orders and this incident is driving more future orders to Airbus instead of Boeing.

Boeing brand and image is damaged. There has been nearly a 30% drop in orders for non-737 Max Boeing planes.

The loss of around $10-15 billion over a 15-18 month grounding will also weaken Boeing’s ability to invest in new planes and technology.

The US government will not allow Boeing to go bankrupt, but it will take many years to rebuild trust in Boeing engineering.

There will be a shift to electric hybrid and all-electric regional planes in the 2020s. Boeing will have drastically weakened finances when they will need to execute on new technology.

A lot of investment is needed for the new technology and designs.

The 737 Max problems show that Boeing has to rebuild its engineering culture. This will also take a lot of time.