One of the biggest contributor to the export sales figure in the US manufacturing number is the production and sale of airplanes. The industry is dominated by 2 companies – Boeing and Airbus. If you went into the airport and saw planes take off and land, they were highly likely one of the 2 companies. Boeing has many planes but the new ones or the latest in the showroom are Max and Dreamliner. The Max 737 is for domestic flights, for international flights the Dreamliner because it holds more people. For decades the production plants in Washington State and South Carolina hummed with activity until Max 737 crashes in 2018. When COVID shut down very few people flew and now lots of people are flying. Boeing is behind and unlike car model recalls, it takes a long time to fix the issues and equally important have the safety regulators approve the fix.
In an article from Reuters, Boeing delivered its first Dreamliner since May 2021 to American Airlines. This is the first for American Airlines CEO Robert Isom expects to receive 9 more this year.
Boeing says it has 120 787’s waiting delivery, while American Airlines has 42 planes on order.
In July, the FAA (Federal Aviation Administration) approved Boeing’s inspection and retrofit plan to meet certification standards.
Linking to dividend paying stocks, all companies say they are safety orientated, but most will default on the side of getting the order out of the door, this is why very few companies pass 100% on their health and safety procedures. Some companies have them as plausible deniability built in, in case they are inspected someone can point to the official procedures. Then real life happens and the company has to do something. Generally profit making companies have better safety records than non profit making companies because they have the flexibility of time. If you are aware that the items sell as long as people believe they are safe, then safety is equally important. If the item is get on the shelf or it will come back and be going to landfill, then the attitude is something else. In your investments try to have more of your companies both trying and doing safety first.
There are more questions than answers, till the next time – to raising questions.