Boeing’s CEO in a wide ranging interview, made a comment that he probably wishes he hadn’t said. When the CEO of one of the worlds largest manufacturers declares he thinks one of the US majors will fail, share prices tumble and the aviation and financial worlds feel a tremor run amok.
Speculation ran wild but, there is one that most see as the weakest, and that’s United. It has the most problems, the least reserves and backup relative to its size, and faces the biggest uphill struggle.
But even if it did fail it would only go into Chapter 11, so its hardly going to vanish, and we all know that Chapter 11 in the US allows companies to ditch all of their contracts and responsibilities and carry on.
So while it might have upset a few shareholders and analysts, overall it didn’t really matter too much, but perhaps he need to think more carefully before speaking.
On the MAX front the company admitted it had lost another 108 orders in April, (total lost since March is now 255) mostly from leasing company GECAS, and was starting a process of removing orders from its backlog of customers that it didn’t think would ever take delivery, by establishing a criteria and then, those that didn’t meet it, they would delete.
The picture for both Boeing and Airbus is changing daily. Qantas and Qatar are among the first larger airlines to make it clear to both manufacturers they are not taking deliveries in the immediate future.