- The crash of Ethiopian Airlines Flight ET302 on Sunday once again shined the spotlight on Boeing’s 737 Max program.
- It was the second nearly brand-new Boeing 737 Max 8 airliner involved in a fatal crash in the past five months.
- Many airlines have decided to ground their Boeing 737 Max fleets. Some safety regulators have outright banned the plane from entering their airspace.
- According to Moody’s, Boeing’s operating profit margin is $US12 million to $US15 million on every 737 Max it delivers.
Sunday’s crash of Ethiopian Airlines Flight ET302 once again shined the spotlight on Boeing’s 737 Max program.
The crash killed all 157 passengers and crew members on board the four-month-old plane.
It was the second nearly brand-new Boeing 737 Max 8 airliner involved in a fatal crash in the past five months. In October, Lion Air Flight JT610 crashed in the Java Sea shortly after taking off from Jakarta, Indonesia, killing all 189 people on board.
Many airlines decided this week to ground their Boeing 737 Max fleets. Some safety regulators have outright banned the plane from entering their airspace.
Boeing, the US Federal Aviation Administration, and the plane’s US operators have stood by their assessment of it as airworthy.
The Max is the fourth and latest generation of the Boeing 737 airliner. The plane’s importance to Boeing’s bottom line cannot be overstated.
“The 737 is very profitable to Boeing because of the high volume, the resulting production efficiencies and the amortization of the capital investment over the program’s decades,” Moody’s said in a note on Wednesday.
The credit-rating agency estimated that Boeing’s operating profit margin is $US12 million to $US15 million on each 737 Max 8 it delivers to customers.
“Boeing does not disclose specifics, but we estimate that the average operating margin dollars recognised for each delivery of a Max 8 aircraft at between $US12 million and at least $US15 million or more even at this point in the model’s life,” Moody’s said.
Boeing was not immediately available for comment.
Boeing lists the 737 Max 8 at $US121.6 million. According to industry research from Teal Group, buyers usually receive a discount of 50% to 55% on the planes.
The 737 Max is built alongside the previous-generation 737NG (Boeing 737-600, -700, -800, and -900) at Boeing’s factory in Renton, Washington.
By the end of 2018, Boeing had ramped up production of the 737 to 52 aircraft a month. It said it planned to produce 57 a month this year.
Last year, Boeing delivered 256 Max aircraft to customers, representing nearly half of all 737 deliveries.
Boeing Commercial Aeroplanes, the company’s airliner division, has a backlog of 5,870 planes – including 4,699 undelivered 737s – valued at more than $US400 billion.
- More on Boeing’s 737 Max 8 and the Ethiopian Airlines crash:
- Everything we know about Ethiopian Airlines’ deadly crash of a Boeing 737 Max 8, the 2nd disaster involving the plane in 5 months
- Norwegian Air reportedly tells Boeing to ‘take this bill’ after grounding its fleet of 18 Boeing 737 Max planes
- This map shows all the countries to ban the Boeing 737 Max 8, and where airlines have grounded their fleets, after Ethiopian Airlines crash that killed 157
- Elected officials are calling on the US government to ground the Boeing 737 Max 8 after the plane was involved in 2 deadly crashes
- Boeing’s CEO reportedly asked President Trump not to ground the company’s plane that has crashed twice in 5 months
- Pilots complained to authorities about issues with the Boeing 737 Max for months before the deadly Ethiopian Airlines crash
- The US government says it has no reason to ground the Boeing 737 MAX that has crashed twice since October
- These airlines will likely take the biggest hit after the Boeing 737 Max was involved in 2 deadly crashes
- The Boeing 737 Max has come under fire after 2 deadly crashes in 5 months – but the aircraft is likely to be successful in the long run, an aviation expert explains
- ‘You basically put a student pilot in there’: The copilot of crashed Ethiopian Airlines Flight 302 had just 200 hours of flight experience
- Boeing is going to update the control software on the 737 Max that may cause the plane to nosedive
- Boeing has $US400 billion in orders on the books. 80% of them are for the 737.
- ‘I don’t want Albert Einstein to be my pilot’: Trump says aeroplanes are becoming ‘too complex to fly’ as the UK, China, and other nations ground the Boeing 737 Max 8
- These are the victims of the Boeing 737 Max 8 crash in Ethiopia
- The family of Ethiopian Airlines Flight 302 captain speaks out after crash that killed 157 people
- A Georgetown University law student who reportedly expressed a fear of flying is among the 157 dead in the Ethiopian Airlines crash
- The black box from the crashed Ethiopian Airlines flight has been found
- An Ethiopian Airlines passenger said he missed the crashed flight by 2 minutes: ‘I’m grateful to be alive’
- People of 35 different nationalities were killed in the Ethiopian Airlines crash, including 8 Americans
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