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(CNBC)   Boeing has lost $26.6 billion in market value since the 737 Max 8 crash. Some how, some way this will translate into increased fares and baggage fees for flyers. Book it, done   (cnbc.com) divider line
    More: Obvious, Ethiopia, Edward Jones, Addis Ababa, Boeing's stock, Week-day names, share slide, Boeing 707, market value  
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281 clicks; posted to Business » on 13 Mar 2019 at 3:43 PM (10 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



22 Comments     (+0 »)
 
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2019-03-13 03:54:53 PM  
Uh, Boeing sells airplanes,not airplane rides. Or am I missing the joke like always?
 
2019-03-13 04:10:50 PM  
To be fair, Boeing's stock price has been pretty volatile over the last couple years anyway.  And it's still way up from the 292 it was at in January.  I'm not sure it's time to panic yet.  I don't yet know how this will impact their long term revenue.

img.fark.netView Full Size
 
2019-03-13 04:21:28 PM  

drewogatory: Uh, Boeing sells airplanes,not airplane rides. Or am I missing the joke like always?


It'll increase Boeing's costs to fix their screwups, which will increase the costs of the planes, which will lead to higher airfares for carriers?
 
2019-03-13 04:28:20 PM  

Wave Of Anal Fury: drewogatory: Uh, Boeing sells airplanes,not airplane rides. Or am I missing the joke like always?

It'll increase Boeing's costs to fix their screwups, which will increase the costs of the planes, which will lead to higher airfares for carriers?


Don't they sign a contract when they order? Hard to believe they don't lock in a price before production. But I know nothing about how this stuff works,
 
2019-03-13 04:28:53 PM  
Buy, Mortimer !  Buy !
 
2019-03-13 04:32:25 PM  
Looks like someone's getting a government bailout
 
2019-03-13 04:38:34 PM  

Wave Of Anal Fury: drewogatory: Uh, Boeing sells airplanes,not airplane rides. Or am I missing the joke like always?

It'll increase Boeing's costs to fix their screwups, which will increase the costs of the planes, which will lead to higher airfares for carriers?


And it's all passed on to the consumer, as is tradition.
 
2019-03-13 04:41:05 PM  

Wave Of Anal Fury: drewogatory: Uh, Boeing sells airplanes,not airplane rides. Or am I missing the joke like always?

It'll increase Boeing's costs to fix their screwups, which will increase the costs of the planes, which will lead to higher airfares for carriers?


Because they've all been grounded, there are fewer aircraft available, so the seats will cost more.
 
2019-03-13 04:42:16 PM  
It's possible that airlines that have a large number of 737 Max 8's in their fleet will now have to work their other planes harder, and thus increase maintenance costs; or maybe they will cancel some flights to accommodate their lack of planes; and for those reasons they might raise fares. But it will have nothing to do with Boeing's stock price.
 
2019-03-13 04:42:58 PM  

Craw Fu: To be fair, Boeing's stock price has been pretty volatile over the last couple years anyway.  And it's still way up from the 292 it was at in January.  I'm not sure it's time to panic yet.  I don't yet know how this will impact their long term revenue.

[img.fark.net image 850x210]


Looks quite like the vertical speed profile of a Max 8 aircraft.
 
2019-03-13 04:42:59 PM  

Wave Of Anal Fury: drewogatory: Uh, Boeing sells airplanes,not airplane rides. Or am I missing the joke like always?

It'll increase Boeing's costs to fix their screwups, which will increase the costs of the planes, which will lead to higher airfares for carriers?


A more direct impact to the fares is the fact they're (Max's) grounded and not making revenue.
 
2019-03-13 04:44:09 PM  
The fix might be cheap, software and maybe a sensor, but liability (if Boeing is found to be at fault in two fatal crashes) could be huge.

But liability might be covered by insurance? I dunno.
 
2019-03-13 04:44:49 PM  

drewogatory: Wave Of Anal Fury: drewogatory: Uh, Boeing sells airplanes,not airplane rides. Or am I missing the joke like always?

It'll increase Boeing's costs to fix their screwups, which will increase the costs of the planes, which will lead to higher airfares for carriers?

Don't they sign a contract when they order? Hard to believe they don't lock in a price before production. But I know nothing about how this stuff works,


Hell if I know.  But not many companies internalize their costs when they can pass them on to someone else.
 
2019-03-13 04:45:19 PM  

NotARocketScientist: Wave Of Anal Fury: drewogatory: Uh, Boeing sells airplanes,not airplane rides. Or am I missing the joke like always?

It'll increase Boeing's costs to fix their screwups, which will increase the costs of the planes, which will lead to higher airfares for carriers?

Because they've all been grounded, there are fewer aircraft available, so the seats will cost more.


There is that, too.
 
2019-03-13 05:44:53 PM  
Boeing's market cap is down $30 billion today. For reference, the entire 787 program cost $32 billion in R&D ... so unless they have to scrap the entire 737 Max plane and start from scratch, methinks the market is over reacting a tad.

/Loss of life sucks, but the fix is probably a software fix
 
2019-03-13 07:11:49 PM  

aaronx: The fix might be cheap, software and maybe a sensor, but liability (if Boeing is found to be at fault in two fatal crashes) could be huge.

But liability might be covered by insurance? I dunno.


I assume they have insurance and would have a claim if there is apparent liability, but the amounts will be so large that it surely will be pretty expensive just coming to agreement with the insurers, let alone the victims.
 
2019-03-13 07:15:06 PM  

Hebjamn: Buy, Mortimer !  Buy !


Still have a little time to wait.  Not a lot of urgency since they just paid out their dividend.  I'm thinking of buying next week, but with 1 month before taxes coming due, and mine aren't done yet, I'm not in a rush.
 
2019-03-13 07:22:03 PM  

NotARocketScientist: Wave Of Anal Fury: drewogatory: Uh, Boeing sells airplanes,not airplane rides. Or am I missing the joke like always?

It'll increase Boeing's costs to fix their screwups, which will increase the costs of the planes, which will lead to higher airfares for carriers?

Because they've all been grounded, there are fewer aircraft available, so the seats will cost more.


That made me google, I didn't know the US grounded them, too. Was anticipating it, though.
 
2019-03-13 08:43:31 PM  

aaronx: The fix might be cheap, software and maybe a sensor, but liability (if Boeing is found to be at fault in two fatal crashes) could be huge.

But liability might be covered by insurance? I dunno.


Honestly it sounds like a training issue. I would be 100% comfortable flying a 737 max on any US carrier. Hell I'd rather fly an ageing US MD-80 over any aircraft no matter how new on most Asian / African airlines due to the training differences
 
2019-03-13 09:05:51 PM  
Boeing? More like Crashing. Am I right?

Try the veal.

Mr_Vimes: Craw Fu: To be fair, Boeing's stock price has been pretty volatile over the last couple years anyway.  And it's still way up from the 292 it was at in January.  I'm not sure it's time to panic yet.  I don't yet know how this will impact their long term revenue.

[img.fark.net image 850x210]

Looks quite like the vertical speed profile of a Max 8 aircraft.


Well done.
 
2019-03-13 09:40:24 PM  

NotARocketScientist: Wave Of Anal Fury: drewogatory: Uh, Boeing sells airplanes,not airplane rides. Or am I missing the joke like always?

It'll increase Boeing's costs to fix their screwups, which will increase the costs of the planes, which will lead to higher airfares for carriers?

Because they've all been grounded, there are fewer aircraft available, so the seats will cost more.


This; limited supply with the same (or increased) demand equals higher prices. And grounded aircraft have a cascading impact. I was in Delhi a couple of weeks ago when India and Pakistan had their slapfight. India shut down all the airports north and west of Delhi (Pakistan went full Madagascar and shut down everything), and even though those aren't major hubs it caused a ripple effect due to the grounding of the aircraft. I was able to get out on schedule since my aircraft was coming in from Mumbai (which was getting iffy at that point but still open), but a few days later I ran into several people at Narita who had been delayed 2-3 days getting out of India. The delays and cancellations were mostly domestic flights, but some international flights were also affected. The people I ran into said their companies told them, "get out and don't worry about the cost".
 
2019-03-14 10:57:27 AM  
Meanwhile, the reason for mucking up the original 737 design to make the "max 8" instead of creating a new airplane to meet the new mission was that it would cost several billion to design and build t new airframe.  Probably less than $26b though.
 
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