If it’s proved to be Boeing issue, can the passenger’s family come to California from overseas to sue Boeing? How much is the liability per person?
Even at $1M per person, Boeing can easily afford $400M. That’s why it is not a big issue for stock holders. Of course, lost life is beyond importance to family
Poor analysis! You look at company liability issue alone.
If you own Boeing company now and manufacture faultly planes, who will give you orders?
Existing orders will be cancelled and future orders will be stalled !
Even if your relative company gives you one order, who will board in the plane?
Even if they give 1Bln per head, do you like to give your life risk?
Loss of customer confidence is the biggest enemy in the business.
WASHINGTON (REUTERS) - The head of a U.S. Senate panel that oversees aviation issues said on Tuesday that he plans to hold hearings on the fatal crashes of two Boeing 737 MAX 8 jets since October, and suggested it would be “prudent” to temporarily ground the planes.
Senator Ted Cruz, the Republican who chairs a subcommittee on aviation and space, said it would be prudent for the United States to join other regulators “to temporarily ground 737 Max aircraft until the FAA (Federal Aviation Administration) confirms the safety of these aircraft and their passengers.” Cruz said he intends “to hold a hearing to investigate these crashes, determine their contributing factors, and ensure that the United States aviation industry remains the safest in the world.”
With this kind of information floating, even if carriers are not grounding the planes, passengers will be canceling the tickets
The suspected issue is around this new system, which overrides pilot action (like autopilot) that leads (suspected action) to crash !
The Maneuvering Characteristics Augmentation System (MCAS) was included on the Max 8 model aircraft as a safety mechanism that would automatically correct a plane entering a stall pattern. If the plane loses lift under its wings during takeoff and the nose begins to point far upward, the system kicks in and automatically pushes the nose of the plane down.
Now you know why AVs won’t work! and why I would sell all AAPLs if it starts selling AVs.
LOL: Just like Boeing lost customer confidence by their faulty system,
Apple lost investor’s confidence by Tim Cook’s wrong forecast assessment
Seriously: Almost all FAANGs reached big market cap and hard to grow in value and returns.
Better to choose less than 50B Medium Cap or Small Cap companies for faster growth.
When you purchased AAPL during 1998, what was the Market Cap? We need to choose such a Market Cap companies now so that they grow in 15 years.
You may ask why BA? It is 5000 planes orders booked like TSLA 400000 Model 3 order booking !
It is unfortunate situation that many orders will likely be cancelled with loss of confidence.
Airbus gets a chance now.
Boeing Co. is facing a wider crisis of confidence in its crucial 737 Max plane following the weekend crash in Ethiopia, with Singapore and Australia temporarily blocking the best-selling model from their airspace. Indonesia’s Lion Air, one of the biggest customers for the jet, is considering switching to the Airbus SE’s A320 family amid plans to suspend existing orders it has with the U.S. plane maker.
BA will have tough time for 12-24 months, possible heavy dip may be there when orders are getting cancelled. It is better stay away during this volatile time.
This is exactly what I was speculating when I got out of BA in Nov.
BA has no real competition. Sooner or later the market will realize that. Airbus is not going to benefit from this.
Why do you think Airbus will not benefit. Lion Air is considering canceling Boeing orders and moving to Airbus.
Not savvy then, blindly bought. Recalled SUN CEO Scott McNealy offered a few $B to buy over AAPL but Markula felt insulted so guess market cap should be around $5 to $15B. Accounting for inflation, $10B-$30B which is the range I have chosen for investing in cloud businesses.
Airbus is crap, starting with their name. The worst name ever. Mediocrity is their credo.
How many BAs are you still holding? Sell now!
I don’t own any BA stock. But BA is the best manufacturer of airplanes. They will survive. They are not Tesla. Buy when there is blood in the streets.
Price didn’t discount any disasters. Some1 is propping it. Passed.
If they are grounded in the US the price will tank and so will airlines stocks.
In other words, no blood on the street.
I think US and Canada could ground BA. It’s a real problem, software bug or bad design can take a long time to fix and nobody can trust software in the sky.
Tesla many also have software bugs which killed some auto-pilot drivers.
I like software for internet and will be scared of software in cars and planes. Software in the sky is the worst
Ethiopian Airline wants to send flight data to UK and doesn’t trust FAA. I think FAA needs to be conservative on this matter. Software bug can be hard to detect and fix, FAA could have made a mistake already.
For Boeing, they can simply fire the CEO when software bug is confirmed. But FAA’s credibility loss can be devastating
“Ethiopian Airlines CEO Tewolde GebreMariam told CNN that the latest crash and the Lion Air tragedy had substantial similarities. Separately, the Wall Street Journal reported that Ethiopia wanted to send the flight-data and cockpit-voice recorders to the U.K., causing U.S. investigators to hold intense behind-the-scenes talks to bring the parts to America.”