Daily Management Review

Boeing receives zero new orders in January 2020


Amid the problems of the American company, its French competitor Airbus received 274 orders. Boeing's troubles began after two disasters involving 737 MAX airliners and the investigation that followed.

Ronnie Macdonald
Ronnie Macdonald
In January, the American Boeing Corporation did not receive new orders for aircraft. This happened for the first time since 1962, CNBC reports.

For the first month of this year, Boeing delivered 13 aircraft, including six 787 Dreamliner airliners, two Boeing 767 and 777, as well as three 737NG models. The company did not deliver 737 MAX airliners, flights of which were suspended after two disasters.

At the same time, French Airbus received 274 orders for commercial aircraft over the same period.

In 2019, Boeing suffered a loss of $ 636 million for the first time in more than 20 years. The company's revenue decreased by 37% at the end of the year, falling to $ 17.9 billion (against $ 28.3 billion in 2018). In order to save funds, the company suspended the share buyback program.

The production of new 737 MAX airliners has been suspended since January 2020 due to certification problems. This decision followed two major disasters - such a plane crashed in Indonesia (189 people died) in October 2018, and in Ethiopia (157 people died) in March 2019. Boeing admitted that there were problems with the MCAS system on board the crashed airliners, which is responsible for the angle of the aircraft.

source: cnbc.com