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Boeing is in turmoil, profit tanks by 53% due to Max 737 issues

Boeing has been bringing some changes lately. The company has reduced production of Dreamliner as well as postponed the arrival of the next series of 777 mini-jumbo on October 23, 2019. This has newly burdened the senior management team besides the secured grounding of 737 MAX that has reduced profits in 3rd quarter. Boeing is the biggest manufacturer of planes in the world. But currently their position is vulnerable. They had to postpone their plans of starting off early of 737 lines in the region of Seattle. In fact, they would not even continue with their record of manufacturing 57 aircrafts each month till later half of 2020, which is also way later than was predicted.

An analyst mentioned that although Boeing has been undergoing series of setbacks, the shares have been increased by 2%. This is because in spite of the reduced production of 787, they have balanced it quite well with their prediction of the return of 737 MAX during 4th quarter. Josh Sullivan, analyst at Seaport said that the reduced production of 787 is mainly due to trade conflict with China. The situation should get better in next one year. For Boeing, this past week has been full of setbacks of business and reduced profits. Besides, the company is already in a deep crisis due to the fact that their best sold single aisle plane has been grounded for unlimited time after being in few fatal crashes.

On October 22, 2019, Boeing had expelled the best executive at their important airplanes division named Kevin McAllister. He was removed due to a sudden issue associated with MAX case. Dennis Muilenburg, CEO had also been trapped in an awkward situation where his position was jeopardized. He is not even sure if Boeing can come out of the MAX crisis. Dennis’ title had been taken off in this month.

Joyce Solomon
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ASSOCIATE EDITOR At Global Industry News 24

Joyce Solomon completed B.E. in Computer Engineering and started working as a Technology Analyst. But, her zeal to write the latest trends in the Technology domain persuaded her to work as an Associate Editorial for Global Industry News 24’s Technology domain news section. She has a total experience of approximately 5 years. By providing excellent-quality news reports, she has made a significant contribution to Global Industry News 24’s Technology section. Her leadership and problem-solving skills have always helped her to rise above the challenges. Along with the strong writing skills and a very good grasping power, Joyce is passionate about learning the latest technology and tools that can help her advance her productivity.

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