Boeing 737 Max airlines take cover under the wing of a black swan - The Air Current
An industry worries about a perfect storm of uncertainly, a crisis of confidence and a glut of airplanes
April 17, 2019 - by Jon Ostrower for theaircurrent.com
("Jet Airways ceases ops. Boeing has around 200 MAX orders outstanding with Jet, some via Boeing Capital Corp" Scott Hamilton, Leeham News)
A week after the terror attacks of September 11, 2001, Boeing laid off 30,000 people. On top of the incalculable human tragedy, the event was a tremendous shock to the U.S. and global economy. Confidence in the safety of the skies had been shaken to its very core. The company would have to “resize” its business for this new reality where fewer wanted to fly.
Years later as economists made sense of the data, it became clear that 9/11 was an accelerant, not the trigger, for the economic contraction. The U.S. economy had begun to contract six months earlier as the dot.com bubble burst. During the exuberance, production at Airbus and Boeing – primarily Boeing – had stuffed too many airplanes into a market that, before the attacks, had already been straining.
It was the last time Boeing was introducing a major new update to the 737 (the Next Generation 737) sprinting at record production as it worried about market share losses at the hands of Airbus. Both cut output. As the recession deepened after 9/11, deliveries at Airbus fell about 6% from its 2001 peak. From Boeing's own 1999 peak to bottoming out in 2003, output plummeted 55%. Boeing had boomed, racing to maintain its position, and then it busted...