Drudge Retort: The Other Side of the News
Friday, July 19, 2019

Boeing is taking a $4.9bn hit to cover costs related to the worldwide grounding of its 737 Max aircraft. The charge is set to wipe out profits when the world's biggest planemaker posts quarterly results next week.

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Boeing Statement: Boeing will record an after-tax charge of $4.9 billion1 ($8.74 per share) in connection with an estimate of potential concessions and other considerations to customers for disruptions related to the 737 MAX grounding and associated delivery delays. This charge will result in a $5.6 billion reduction of revenue and pre-tax earnings in the quarter.

While the entire estimated amount will be recognized as a charge in the second quarter, the company expects any potential concessions or other considerations to be provided over a number of years and take various forms of economic value.

Additionally, Boeing's estimated costs to produce the aircraft in the 737 accounting quantity increased by $1.7 billion in the second quarter, primarily due to higher costs associated with a longer than expected reduction in the production rate. The increased 737 program costs will reduce the margin of the 737 program in the second quarter and in future quarters.

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Doesn't make up for all the innocent people they've killed.

Although Obama has them beat by a mile.

#1 | Posted by SheepleSchism at 2019-07-19 12:26 AM | Reply

Obama kept US Airlines safe. No crashes since 2009.

Trump cut regulations and people died.

#2 | Posted by bored at 2019-07-19 12:37 AM | Reply

$9.00 per hour engineers doesn't look all that brilliant in hind sight does it. I hope they lose more. Our Capitalist system is sick and dying because of greed. It needs to be replaced with regulated Capitalism where greedy a******s can't profit even though they are killing people.

#3 | Posted by danni at 2019-07-19 07:00 AM | Reply

The bigger hit will come in November when they cant get it re-certified. Worldwide, the airlines have lost some 2.2 billion since they grounded the plane.

#4 | Posted by gitmboy at 2019-07-19 09:26 AM | Reply

$9.00 per hour engineers doesn't look all that brilliant in hind sight does it. I hope they lose more.

The engineers knew the plane was a death trap. Management told them to push it out anyways.

In today's society, good jobs are so scarce they were afraid of being whistle blowers. No people are dying because of greed.

In Japan the managers who ordered that would hari-kari.

In China they would be executed.

In the US they get bonuses.

The executives who negligently pushed these out need to be charged with murder.

#5 | Posted by Nixon at 2019-07-19 12:31 PM | Reply | Newsworthy 2

The executives who negligently pushed these out need to be charged with murder.

hmmmm.... musta missed that class in Harved B' school... there's a reason they have a skull and bones...

In the US they get bonuses.

#6 | Posted by Pegasus at 2019-07-19 12:58 PM | Reply

In the US they get bonuses.

We've set up a system here in the US where there is no accountability above the labor force (excluding the police). If you are an executive, you are immune from any government accountability - the only potential negative consequences would be if the shareholders are unhappy. Once you're in the CEO's club, it's pretty hard to lose membership...regardless of your record. Sure, #metoo took out a few high profile dbags, but one or two sacrificial lambs to appease the masses and the status quo stays the same.

Deregulation is actually systemic avarice - remove all the regulations and nobody has to worry about how many people your business kills. The rubes will simply shrug and blame whatever target their corporate overlords have decided need their attention this week.

This is the GOP's world - they've been pushing the limits for a long time now:

Torture? OK, preferred even (call it, um, "Harsh Interrogation," just in case)!
Get rid of Habeas Corpus? No problemo, for the brown people at least.
6 year olds getting shot in the face? Price of freedom, baby!

With morals like these, is there any doubt that the owners are protected from any accountability for corruption? It's encouraged at this point. Welcomed by the GOP and their fascist supporters.

#7 | Posted by chuffy at 2019-07-19 02:54 PM | Reply | Newsworthy 1

Still trying to figure out, when we discuss the glories of capitalism, is 737-type behavior a feature, or a bug?

#8 | Posted by contrecoup at 2019-07-20 03:08 PM | Reply

Fly on a product of communism. I'd rather be on a 737-MAX in a 3rd world airline.

The only time the Soviets made a good airliner, it was a copy of a US or European design.

#9 | Posted by sitzkrieg at 2019-07-20 06:13 PM | Reply

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