Boeing puts Max costs at more than USD18 billion
Boeing says the true cost of the 737 Max crisis is much worse that previously feared for the company.
It now puts the financial cost at $18.6 billion, which is more than double its previous estimate.
The plane maker reported its first annual loss in over two decades.
It posted a full-year loss of $636m on $76.6 billion in revenue, dragged down by a fourth quarter loss of $1 billion.
Boeing has since halted production of the Max and still awaits clearance from regulators worldwide before it can start delivering new aircraft to airline customers.
It expects it will not get clearance for the Max to fly again until the middle of 2020.
Boeing cited $4 billion in ‘abnormal production’ costs which include payments to suppliers and keeping Max workers employed elsewhere within the company while Max production is at a standstill.
The costs so far haven’t factored in potential pay outs from multiple lawsuits filed by the families of 346 killed in two Max crashes.
The fallout from the crisis led to the firing of CEO Dennis Muilenburg, who was replaced by long time board member David Calhoun.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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