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Bridging The Gap
Boeing takes $5bn hit over grounding of 737 Max
  Saturday 20 July, 2019
Boeing takes $5bn hit over grounding of 737 Max

Boeing is taking a $4.9bn hit to cover costs related to the global grounding of its 737 Max aircraft.

The charge is set to wipe out profits when the world's biggest planemaker posts quarterly results next week.

In a statement, Boeing also said its "best estimate at this time" is that the aircraft will return to service in the last three months of this year.

A 737 Max crash in Indonesia in October, and another in Ethiopia in March, killed 346 people in total.

Boeing is facing one of the worst crises in its history after regulators banned its best-selling aircraft from flying after the disasters.

Crash investigators have concentrated their efforts on the aircraft's control system and Boeing has been working with regulators to roll out a software upgrade.

The manufacturer, facing intense scrutiny over the regulatory clearance for the aircraft to fly, has cut the monthly production rate from 52 to 42 as airlines hold off purchases.

Most of the $4.9bn charge will be used to compensate Boeing's customers for schedule disruptions and delays in aircraft deliveries.

On Friday, Boeing's share price jumped 4% at the start of trading, a sign that investors seem comfortable with the charge. Analysts knew that Boeing faced a heavy financial cost following the disasters and had been awaiting clarity.

In April, Boeing halted share buybacks, and said that the grounding of the 737 Max fleet had cost it an additional charge of at least $1bn so far.

Source: https://www.bbc.com/news/business-49026285

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 ,New York  Date:Sunday 28 July, 2019

 ,New York  Date:Sunday 28 July, 2019

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