The CEO of Boeing is promising upgrades to the 737 Max jet aimed at avoiding a repeat crash.
Dennis Muilenburg has been addressing shareholders at their annual meeting. Investors want answers in the wake of two fatal accidents that’s led to the grounding of the aircraft.
CGTN’s Gerald Tan examines how the crisis has affected the company’s performance.
Boeing is the world’s largest aerospace company.
Last year, it raked in $101.1 billion in revenue – record sales for the Chicago-based firm.
Unprecedented aircraft deliveries and expanded services gave it a net profit of $10.5 billion, to the delight of investors.
But the grounding of 737 Max planes is costing the company. Just last week, Boeing announced it’s taken a $1 billion hit to solve production issues and get the jet back in the air.
Out of more than 5,012 orders, only 387 aircraft have been delivered so far. And there’s worry over cancellations, as stigma grows around the 737 Max brand.
Still, Boeing has significant resources to weather the current turbulence. Its backlog of aircraft orders is worth $487 billion.
The company said it’s working closely with airlines and pilots to ensure their confidence in the safety of Boeing planes. But there’s yet another challenge: how to win back the trust of airline passengers.
Seth Kaplan talks about Boeing CEO promises upgrades to 737 Max aircraft
CGTN’s Elaine Reyes spoke to transportation analyst Seth Kaplan about Boeing CEO promises upgrades to 737 Max aircraft and it’s recent shareholder meeting.