Boeing Doubles Projected Cost Of 737 MAX Grounding To $18.4 Billion
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January 29, 2020 - by Dominic Gates for seattletimes.com
Boeing doubled its projection of the cost of the 737 MAX crisis Wednesday, adding another $9.2 billion in losses, accounting write-offs and estimated higher future production costs. This brings the total to $18.4 billion.
The company reported a full-year net loss of $636 million, the largest in Boeing's history.
Speaking to financial analysts on a teleconference call, new Boeing chief executive Dave Calhoun nevertheless expressed confidence in the MAX and the eventual recovery of Boeing.
"We will get though this moment," Calhoun said. "I believe we'll deliver the safest airplane in the sky."
Asked to say what had caused Boeing to miss the flaws that led to the MAX crashes that killed 346 people, he reiterated previous comments that Boeing's design of the MAX made incorrect assumptions about pilot reaction, assumptions also made by the regulators.
However, he insisted that Boeing's culture and its recent focus on finances and cost-cutting were not a factor...
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