Risk, returns & timeframes illustration
1 min read
May 3, 2022
by
Belinda Nash

Boeing fails to take off

What happened when sky pioneer Boeing focused on revenue not aircrafts? They were grounded for 18 months with their reputation left on the runway. And that’s without the Air Force One deal that may leave them US$1.1 billion out of pocket.
1 min read
May 3, 2022
by
Belinda Nash

Boeing fails to take off

What happened when sky pioneer Boeing focused on revenue not aircrafts? They were grounded for 18 months with their reputation left on the runway. And that’s without the Air Force One deal that may leave them US$1.1 billion out of pocket.
1 min read
May 3, 2022
by
Belinda Nash

Boeing fails to take off

What happened when sky pioneer Boeing focused on revenue not aircrafts? They were grounded for 18 months with their reputation left on the runway. And that’s without the Air Force One deal that may leave them US$1.1 billion out of pocket.
Table of contents
Getting Started Investing course
Free Getting Started Course
Take your first, or next, step to becoming a confident investor with Hatch's free online course – just 10 minutes a day, for 10 days.

Warren Buffett’s this weekend lambasted Wall Street’s clamber for ‘the crumbs that fall off the table of capitalism’. But the pressure of airlifting quarterly returns has possibly proved a double-edged sword for investors when it comes to legacy of the skies, Boeing (BA), after the company last week again missed earnings expectations. 

The former darling of Seattle, builder of really big planes and the middle class economy, has faced a payload of scrutiny following two fatal plane crashes of their 737 MAX 8 aircraft in 2018 and months later in 2019. And this March, their Boeing 737-800 fell out of Chinese skies, likely sparking fresh scrutiny. So how did Boeing’s sky-high position shift from ‘If it ain’t Boeing, I ain’t going’ to a ‘culture of concealment’? ✈️

It’s been a turbulent journey for Boeing since their 377 Stratocruiser flew the highway to Hawai’i in 1950s Mad Men style, complete with a bar and buffet dining. Long before Trump bullied from the pulpit to negotiate a cut-price deal of Air Force One planes, which today’s CEO says will likely cost the company US$1.1 billion, Boeing’s story of corporate greed began with a fatal flaw: replacing engineering decisions with financial ones. 🪂 The first being after Boeing merged with their greatest rival, aerospace and defence contractor McDonnell Douglas when they allowed incoming James McDonnell to take over as CEO, where he accelerated delivery of shareholder returns by axing 48,000 jobs. That decision ominously set the flight path towards the MAX safety failures. 

Boeing's so-called ‘deadly tale of greed’ is laid bare in a Netflix documentary that unravels how the passenger plane pioneer ‘withheld information about potential hazards’ to avoid costly pilot training for their 737 MAX. So while the world looks towards a pilot shortage that may fly into 2030, 👩✈️ it could be a while yet before travellers even want to leave on a jet plane…even for olive oil bottle minis.

Belinda Nash
Finance writer
Linkedin

We’re not financial advisors and Hatch news is for your information only. However dazzling our writing, none of it is a recommendation to invest in any of the companies or funds mentioned. If you want support before making any investment decisions, consider seeking financial advice from a licensed provider. We’ve done our best to ensure all information is current when we pushed ‘publish’ on this article. And of course, with investing, your money isn’t guaranteed to grow and there’s always a risk you might lose money.

Join the Kiwis who are hatching their tomorrow and have invested more than $1 billion with Hatch.

Explore another series
Tax
Money
Economy
Investing

More recent news articles

Recent learn articles

8 min read
Dec 3, 2024

Nvidia hitting highs in the ‘age of AI’

Some early Nvidia investors may be ready to retire, but with global AI demand appearing to increase, the semiconductor manufacturer may not be the only chip stock on the block. And while Nvidia’s third quarter earnings beat expectations, and lifted major indexes in 2024, does their heavy weighting make indexes more volatile?
Read more
7 min read
Nov 12, 2024

How a Trump presidency could shape global economics

The US has chosen their 47th president. Now, as President-elect Donald Trump prepares to move back into The White House, how could his policies affect Americans, New Zealanders and the world? Was this the ‘inflation election? And what could it mean for the future of crypto?
Read more
6 min read
Oct 22, 2024

Cybersecurity in 2024: What you need to know

The world is short 4 million cyber professionals, your strongest password should take 11 billion years to hack, 3,600 emojis could make passwords stronger, and one cyber stock is up more than 500% in 5 years despite grounding flights. Find out how you can fight crime one password at a time in 2024.
Read more

Related news articles

More recent learn articles

No items found.

Recent news articles

More recent learn articles

8 min read
Dec 3, 2024

Nvidia hitting highs in the ‘age of AI’

Some early Nvidia investors may be ready to retire, but with global AI demand appearing to increase, the semiconductor manufacturer may not be the only chip stock on the block. And while Nvidia’s third quarter earnings beat expectations, and lifted major indexes in 2024, does their heavy weighting make indexes more volatile?
Read more
7 min read
Nov 12, 2024

How a Trump presidency could shape global economics

The US has chosen their 47th president. Now, as President-elect Donald Trump prepares to move back into The White House, how could his policies affect Americans, New Zealanders and the world? Was this the ‘inflation election? And what could it mean for the future of crypto?
Read more
6 min read
Oct 22, 2024

Cybersecurity in 2024: What you need to know

The world is short 4 million cyber professionals, your strongest password should take 11 billion years to hack, 3,600 emojis could make passwords stronger, and one cyber stock is up more than 500% in 5 years despite grounding flights. Find out how you can fight crime one password at a time in 2024.
Read more