This year is off to a challenging start for Boeing as focus remains on the crisis surrounding the 737 Max aircraft.
After Boeing's record-breaking 2018 results, this year is off to a rocky and challenging start as the aerospace giant's focus remains on the crisis surrounding its 737 Max aircraft.
He noted that the company's total 737 program has a backlog of more than 4,400 airplane orders. Boeing estimates global demand for narrow-bodied single aisle aircraft, the 737's category, at 31,000 over the next two decades. As Wall Street analysts pressed for explanations on how the apparent flaw escaped noticed during testing and certifying Boeing's key jet, Muilenburg defended the program.
He emphasized that there was not a"technical slip or gap" in the company's engineering or development of the 737 Max. Rather, Muilenburg said both of the fatal crashes were"a series of events" and"that is very common to all accidents that we've seen in history." Boeing noted in its first-quarter earnings report that the company had about $1 billion in additional costs from the 737 program. CFO Greg Smith noted that the added costs were due to the lower 737 production rate. Boeing"delivered over 50 fewer 737 aircraft in the first quarter than planned," he said. But the $1 billion does does not include"the cost to develop and test the software" being added and tested on the 737 Max planes, Smith added.
"Nothing is more important to us than the safety of the flight crews and passengers who fly on our airplanes," he said.
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