With its best-selling plane, the 737 Max, the subject of public and federal scrutiny after the terrifying midair blowout of a panel on an Alaska Airlines jet in January, the world's largest aerospace company is struggling to recover from a nightmare that’s slashed $28 billion from its market cap. And its two decades of procrastinating the launch of another new plane program since development of the 787 formally kicked off in 2003 is increasingly looking costly.
“They should be able to do both of these things simultaneously, get the safety and quality back to where it needs to be, and at the same time figure out what the future is going to hold.” Boeing’s market share losses could be hard to reverse given the stickiness of incumbency with airlines, which are reluctant to switch plane types due to the high expense of retraining pilots to fly them, said Ken Herbert, an analyst at RBC Capital Markets.
led to the need for stability augmentation software that malfunctioned in two deadly crashes in 2018 and 2019, throwing the company into crisis. Analysts expect a new plane could cost $20 billion to $30 billion in R&D and capital expenditures over eight to 10 years. If Airbus stretches the A220, Boeing might need to counter with a second, smaller plane as well, some analysts think.
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