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Disaster! Boeing 737 MAX FAILURE...

Disaster! Boeing 737 MAX FAILURE... === #fligavia #boeing #airbus #boeing737 #aviations === 00:00 - 00:21 Intro 00:21 - 04:15 Financial impact 04:15 - 07:04 Reputation 07:04 - 10:36 Disadvantages in competition with Airbus === Disaster! Boeing 737 MAX FAILURE... 7 3 7 Max has caused so many serious troubles to Boeing. The consequences caused by the 2 fatal crashes are far beyond just accidents. Find out in this episode of Flig Avia: Why 7 3 7 Max is a real disaster to Boeing? But before we start, please hit subscribe if you haven't yet to help us improve our channel even further, thank you so much. Now, let’s dive in! Financial impact The very first consequence that Boeing has to deal with is the financial impact. The most immediate financial hit came with the grounding of the 7 3 7 Max fleet worldwide following two fatal crashes. As a result, the grounding led to a halt in deliveries of the 7 3 7 Max, which was a crucial revenue stream for Boeing. As of January 20 20, Boeing estimated that the grounding alone cost the company around 9 billion dollars. This figure included the costs associated with storing the aircraft, compensating suppliers, and maintaining an idled workforce. Disaster! Boeing 737 MAX FAILURE... Boeing had to compensate airlines for the loss of their 7 3 7 Max aircraft and the disruptions caused to their operations. Airlines had grounded fleets, and the delays led to significant operational challenges, including lost revenues and increased costs. Boeing set aside billions of dollars to address these compensation claims. By the end of 20 19, Boeing had earmarked approximately 5.6 billion dollars for airline compensation. This figure grew as the grounding persisted and more compensation claims were filed. Disaster! Boeing 737 MAX FAILURE... The grounding also forced Boeing to slow down and eventually halt production of the 7 3 7 Max. Initially, Boeing reduced the production rate from 52 aircraft per month to 42 in April 20 19. In December 20 19, Boeing decided to suspend production entirely starting in January 20 20. This suspension lasted until May 20 20, profoundly affecting Boeing's finances. The production halt disrupted the entire supply chain, affecting thousands of suppliers and leading to increased costs and inefficiencies. The direct cost of the production halt was estimated to be around 1 billion dollars per month, leading to a total cost of approximately 5 billion dollars by the time production resumed.