Right now, even if management wanted to launch a new plane program, Boeing likely couldn’t afford to, with a cash outflow of $3.9 billion in the first quarter and expectations the bleeding will continue in the second quarter, with 737 assembly rates slowed while the company works through improvements to the manufacturing process. Airlines typically pay 65% to 70% of the purchase price of a plane on delivery. It also aims to raise 737 production to 38 per month in the second half and with a goal of 50 by 2026. For example, Boeing had planned at the beginning of 2022 to deliver 500 737s that year. Plane In VainBoeing has prevaricated for two decades on launching a program to replace the 737, an aircraft design that dates back to the 1960s, or to build a plane sized between the 737 and its 787 widebody.

Source: Forbes June 03, 2024 09:43 UTC