Boeing is going through one of the most serious crises in its history because of two crashes involving one version: the 737 MAX 8.
since the accident, causing nearly $27-billion of market capitalization to go up in smoke. It is difficult to estimate the financial impact, but the analysts are looking at different scenarios.
If the Ethiopian Airlines and Lion Air accidents were found to have the same cause, the economic consequences would be minimal since Boeing would just have to roll out the updates to the flight control software and the flight manual already underway. That would amount to less than $1-billion because the cost of the changes would be about $2-million per device, Canaccord analyst Herbert estimates.But if investigators find a different cause, Aboulafia said the cost would be much greater, since it is likely to oblige the aircraft to be grounded for an extended period, and would involve repairs and major compensation, forcing airlines to find alternative aircraft to fly their routes.
The company, which also manufactures fighter jets, tankers, aerospace equipment and Air Force One, the plane that carries the President of the United States, is an American industrial flagship.In addition to Boeing and its 150,000 employees, many direct and indirect suppliers to the 737 MAX are likely to be affected by the crisis, especially if orders are cancelled.
They include General Electric and Safran, whose joint venture CFM manufactures the LEAP engine on the aircraft, US companies United Technologies and Spirit AeroSystems .
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