February 18
“Boeing has also said it’s already lost $2 billion on the project, which involves the conversion of already-completed 747-8s that were supposed to go to a Russian airline that went out of business rather than starting from scratch with new airframes.”
Really??? Boing lost how much??? And they claim they are four years away from completing the project I would guess not including shakedown time??? None of that makes any sense. If that is in fact the case, Boeing execs who negotiated the contract have to be some of the dumbest people in existence. If this is true, it explains why and how Boeing is in the state of complete mass confusion regarding the “Dreamliner.”
In addition, how much more money are they projected to lose through the end of the project given their stated fact that they have already lost two billion dollars. I’m assuming that is billion with a “B.”
Already losing 2 billion dollars on a 3.9 billion dollar fixed contract project that is allegedly four years away from completion just doesn’t sound right. Something has to be wrong here, I hope.
If this is true, a lot of heads should roll.
1 reply
February 18
▶ MrMilkshake
Don’t worry, see it’s “Boeing” accounting. They don’t really lose 2 billion, well at least not cash wise. As with most large corporations they have a narrative and the accountants produce what the executives report to the press. If you look at the numbers, Boeing lost 4.8 billion last year. Half of that could be attributed to the AF one project? I doubt it. More mirrors and smoke from Boeing.
As far as someone getting held responsible? I highly doubt it. Pity will be dealt, executives will “retire” or seek a new opportunity to provide impact to a different organization. Parachutes will be paid and the corporation will continue to lumber along.
67 billion dollars in revenue last year, that’s a measly 183,561,643 dollars a day for 365 days. Somehow, I think Boeing will survive to report another year of operational losses.
February 18
Boeing has the US by its balls. Airbus being the only alternative.
1 reply
February 18
This would seem to indicate that privatizing government functions would not lead to the automatic efficiency and cost savings that so many of its supporters advocate for, if Boeing, a private company, can’t deliver this on time and on budget.
1 reply
February 18
▶ jethro442
Back when McDonald Douglas execs took over Boeing, voices warned that this would happen - but politicians wanted to get reelected, so they caved in to Boeing’s demands. There is a reason we have anti-monopoly laws. Now, if only someone would enforce them! But big tech would fight it now - and they pretty much make up the reality they want, so don’t hold your breath.
February 18
▶ gmbfly98
How dare you state the obvious to the oblivious.
February 18
Well using a already built 747 will require a lot of rework, first of all most all of the wiring must be removed and “ nuclear hardened” wiring must be installed, there are other systems that will require upgraded. So with Trump “ sticking his nose” into all the required upgrades etc that he says “ , not needed” will only endanger him and future presidents. It would have been better to build new 747’s where it’s easy to build all the upgrades required.
1 reply
February 18
This sounds like a shakedown to me. Reading between the lines, Boeing is actually saying, “Give us more money, and we can talk about moving up the delivery timeline.”
February 19
I’m sorry sir but the built in nuclear hardened McDonald’s is what’s causing most of the cost overrun and delay…showstopper…dealbreaker? Okay, yes sir, we’ll find a way. And the solid gold commodes which can always deal with you in one flush…well sir, we found a way to put men on the moon but…
February 19
Found the guy who doesn’t know the 747 production line has been shut down for years.
