In late June there was good news for Boeing. The Boeing 737 Max which has been grounded since two accidents is finally in test campaign. The planes are flying at the end of June for test flights.
In an article by Eric M Johnson and David Shepardson of Reuters, if all goes well and the engineers at Boeing have demonstrated Boeing has fixed the problems, the results should be known by September. If the results are positive, Boeing stock will be a high flier once again.
The 737 Max was designed as a cash cow for the passenger side of the company, the company also has a healthy division involving the military. For most of us, when the countries open up and people can fly and beginning flying, there are two choices – Boeing and Airbus planes. The growth of airlines around the world has meant Boeing planes were the largest single contributor of foreign payments to the US. The planes were a hot seller. Then came the accidents and on top of that the effects of COVID. In addition Boeing’s relationship to the accident has been at issue, the FAA was subject to complaints it was too close to Boeing as its top officials once worked at Boeing. It is expected, Boeing has corrected the errors and put safety first.
Linking to dividend paying stocks, it is often through crisis when you get to see the character the culture of the company. Without finding fault, Boeing lost its President because of the accidents. Has Boeing changed, as potential passengers we hope and expect it has. Boeing has been a profitable company for a long time, one expects given the monpoly like position it holds with Airbus, Boeing will be so again.
There are more questions than answers, till the next time – to raising questions.