Boeing has revealed that the grounding of its 737 MAX 8 aircraft last month has cost the company about $1 billion so far. For those who don’t know, the grounding of 737 MAX 8 took place after two crashes within a span of five months.
The two catastrophic crashes of the 737 MAX 8 led the regulators from all over the world to ground it. This was done because similarities were started to emerge between the two crashes and for the sake of the safety of passengers, it was crucial that the planes be grounded and thoroughly investigated.
The 737 MAX 8 is among one of the most famous aircraft in the world and has been grounded for over thirty days. The financial toll on Boeing is beginning to surface, as it works tirelessly to get the grounding overruled by making sure that the 737 MAX 8 is safe.
Boeing has an earnings call with investors coming up soon, and the company has announced that the early financial toll because of the grounding of 737 MAX 8 is over $1 billion. Boeing has further said that the financial forecast will have to be ceased until the complete extent of the losses form 737 MAX 8 crisis are known in detail.
The company has also ceased stock buybacks until further notice is provided. Dennis Muilenburg, Chairman and CEO of Boeing, said in a statement, ‘Across the company, we are focused on safety, returning the 737 MAX to service, and earning and re-earning the trust and confidence of customers, regulators and the flying public.’
We believe that the grounding of 737 MAX 8 was the right call to make. It should not be allowed to take flight until and unless it has been made sure that the crashes were accidents and not because of a fault in the aircraft. What do you think?
