• Privacy policy
  • T&C’s
  • About Us
    • FAQ
  • Contact us
  • Guest Content
  • TLE
  • News
  • Politics
  • Opinion
    • Elevenses
  • Business
  • Food
  • Travel
  • Property
  • JOBS
  • All
    • All Entertainment
    • Film
    • Sport
    • Tech/Auto
    • Lifestyle
    • Lottery Results
      • Lotto
      • Set For Life
      • Thunderball
      • EuroMillions
No Result
View All Result
The London Economic
SUPPORT THE LONDON ECONOMIC
NEWSLETTER
The London Economic
No Result
View All Result
Home Travel

Boeing to take £3.9bn hit over 737 Max grounding

Boeing has kept building Max jets, although at a reduced rate.

Joe Mellor by Joe Mellor
2019-07-19 11:55
in Travel
credit;PA

credit;PA

FacebookTwitterLinkedinEmailWhatsapp

Aviation manufacturer Boeing has said it is booking a 4.9 billion US dollars (£3.9 billion) charge to cover possible compensation to airlines that have cancelled thousands of flights since the 737 Max jet was grounded after two deadly accidents.

The aeroplane builder also said the Max-related fallout will cut almost 5.6 billion dollars (£4.5 billion) from its revenue and pre-tax earnings in the April-through-June quarter.

The Chicago-based company said the calculations were based on an assumption that regulatory approval for the plane’s return to flying will begin early in the fourth quarter.

The timing is earlier than some analysts expected and may have contributed to a rally in Boeing shares in after-hours trading. Boeing is scheduled to report its quarterly results next week.

It also raised its estimate of Max production costs by 1.7 billion dollars (£1.3 billion) because output will be curtailed longer than expected.

RELEASE: Boeing to recognize charge and increased costs in second quarter due to 737 MAX grounding.
Read more: https://t.co/ooDa5KBzec

— The Boeing Company (@Boeing) July 18, 2019

Boeing is still working on fixing flight-control software that appeared to play a role in crashes that killed 346 people off the coast of Indonesia and in Ethiopia.

In March, regulators grounded the Boeing 737 Max and the company suspended deliveries of new jets.

The 4.9 billion dollar charge does not include amounts that Boeing may pay in the dozens of lawsuits filed by families of crash victims.

The company this week hired a victims-compensation expert to oversee a relief fund for families, which the company said was separate from the lawsuits.

RelatedPosts

Ever wanted to travel on a vintage tube train? Now you can!

Don’t Let Cancelled Flights Cost You. Know Your Rights Under UK & EU Law

Top Sustainable Travel Tips for Exploring Eco-Friendly Singapore

Hotel review: Matfen Hall, Northumberland

The 5.6 billion dollar hit to pre-tax earnings is more than half of Boeing’s profit for all of 2018.

“The Max grounding presents significant headwinds and the financial impact recognised this quarter reflects the current challenges and helps to address future financial risks,” chairman and chief executive Dennis Muilenburg said in a statement.

The plane’s return has been pushed back several times, most recently after Federal Aviation Administration (FAA) pilots found a new flaw while testing Boeing software changes in a flight simulator.

That discovery prompted Boeing to say in late June that it expected to present its proposed fix to the FAA “in the September timeframe”.

Boeing Airplane
In March, regulators grounded the Boeing 737 Max (Ted S Warren/AP)

Boeing says concessions to airlines will be spread over several years but it is taking the entire estimated expense as a charge in the second quarter.

It did not specify what form the compensation would take, but hinted that it would not be entirely in cash.

Despite the grounding, Boeing has kept building Max jets, although at a reduced rate of 42 per month, down from 52, since April.

The company said ON Thursday that it assumed it can raise production gradually to 57 per month in 2020.

Boeing has delivered fewer than 400 Max planes but has unfilled orders for about 4,500.

The worst airline for delays is found HERE

Subscribe to our Newsletter

View our  Privacy Policy and Terms & Conditions

About Us

TheLondonEconomic.com – Open, accessible and accountable news, sport, culture and lifestyle.

Read more

SUPPORT

We do not charge or put articles behind a paywall. If you can, please show your appreciation for our free content by donating whatever you think is fair to help keep TLE growing and support real, independent, investigative journalism.

DONATE & SUPPORT

Contact

Editorial enquiries, please contact: [email protected]

Commercial enquiries, please contact: [email protected]

Address

The London Economic Newspaper Limited t/a TLE
Company number 09221879
International House,
24 Holborn Viaduct,
London EC1A 2BN,
United Kingdom

© The London Economic Newspaper Limited t/a TLE thelondoneconomic.com - All Rights Reserved. Privacy

No Result
View All Result
  • Home
  • News
  • Politics
  • Lottery Results
    • Lotto
    • Set For Life
    • Thunderball
    • EuroMillions
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • JOBS
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Privacy policy
  • Contact us

© The London Economic Newspaper Limited t/a TLE thelondoneconomic.com - All Rights Reserved. Privacy

← UK budget deficit swells as June borrowing hits four-year high ← Largest amount of shopping trolleys ever found in River Thames in just one day.
No Result
View All Result
  • Home
  • News
  • Politics
  • Lottery Results
    • Lotto
    • Set For Life
    • Thunderball
    • EuroMillions
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • JOBS
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Privacy policy
  • Contact us

© The London Economic Newspaper Limited t/a TLE thelondoneconomic.com - All Rights Reserved. Privacy

-->