Bob Parker, investment committee member at Quilvest Wealth Management, discusses Boeing’s decision to halt production of its 737 Max aircraft.

14 replies
  1. Warren Mundell
    Warren Mundell says:

    If it ever flies again, they may have trouble filling the seats. Airlines don't like that. What a mess, if this happened to a Russian, or Chinese aircraft, the west would never use it, or give it air rights.

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  2. David Jacobson
    David Jacobson says:

    In the case of Boeing, the core problem was the design decision to reuse its old body with new larger engines. It is hard to see the case that the problem was the result of a culture or that it can be fixed by a culture change. The real problem are its prospects for success with that old body design. There will be three alternative planes with body designs consistent with the newer more economical large engines. It is going to take time for the Chinese and Russian versions to arrive and reach large scale production. But, at least the Chinese state owned airlines are surely going to buy many of the Chinese planes even if their quality was lower than Boeing's. In the case, where Boeing's plane proves to be the lowest quality of the four competitors, the prospects seem high for a major erosion of Boeing's market share particularly among the airlines outside the United States.

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  3. Mar Blox
    Mar Blox says:

    This VERY SMALL issue has ballooned into a catastrophe.
    It is mainly because of the many insane media outlets who will do anything for a story and with the internet.
    If this happened in 1980 like with the DC-10 it would have been solved and up flying in 3 weeks.

    Reply
  4. Murat T
    Murat T says:

    A GOOD EXAMPLE OF A BAND AID SOLUTION TO A PROBLEM.
    737 MAX has a design flaw: Engine wing configuration.
    Structural construction of Boeing 737 Max is wrong. Engine is installed under the wing a little forward and up so that to keep enough distance between engine and ground. This installation in flight makes tendency of turbulence over the wing which result in stalling the aircraft which means in other words nose up. Boeing knew that this will happen during the flight. In order to compete with Airbus they quickly decided to install a system called MCAS. MCAS system makes the nose down in case of nose goes up. But not always. In case of failure of MCAS pilots can not rescue the aircraft. A well design aircraft should stay in balance inherently without needing a system like MCAS.

    This is a design flaw on the Aircraft and it can not be corrected by a software modification. It is something like a band aid. Real cause of the problem is going to continue to stay on board. 2 or more sensors or other modifications just eye painting from Boeing. So this aircraft cannot be considered as a safe aircraft even if after software modification.
    In order to solve the problem structural changes must be done on the aircraft.

    737 MAX is not going to fly any more. Boeing may be attempt to have it fly but general public is not going to accept to fly with 737 MAX. So it will go to the scrap.
    WHY BOEING STOPPED PRODUCTION? BECAUSE THEY ARE NOT SURE TO GET CERTIFICATION FROM FAA. IT MEANS THAT THERE İS HIGH POSSIBILITY THAT 737 MAX NOT TO FLY ANYMORE. SO THEY ARE TRYING TO NOT WASTE MONEY.

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  5. Zac Paul
    Zac Paul says:

    I do not know if the MAX is ever going to fully recover, because the information age makes it easier to understand just how terrible the decisions at Boeing was. Anyone who has been watching this is always going to wonder what other terrible decision/implementation decisions Boeing made in regard to the MAX. Further, airlines may be more hesitant to purchase a plane that so many customers are going to be weary of. I envision the line starting back up, the plane being quite safe when production resumes, but because of consumer perception, an airline tendency to shift away from the 737 toward the Airbus A320 Neo line, and a likely relative short production life of the MAX compared to prior revisions of the 737.

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