Jan 14, 2020

Boeing lost plane orders in 2019 for the first time in decades

Photo: Olivier Douliery/AFP via Getty Images

Boeing had more canceled orders than new purchases in 2019, following two deadly crashes and the grounding of the 737 MAX jet, CNBC reports.

Why it matters: It's the first time the company has posted negative orders in at least three decades, according to a spokesperson. The company lost a total of 87 orders for commercial airplanes, while its European competitor Airbus logged orders for 768 new planes, per CNBC.

The state of play: Boeing's board recently ousted its CEO Dennis Muilenburg, who managed to survive more than a year after the first 737 MAX crash. Muilenberg forfeited stock units worth about $14.6 million, but he will still leave the company with more than $60 million in compensation.

  • Muilenberg has been replaced by Dave Calhoun, who said in an email to all employees Monday that his primary focus is getting the 737 MAX back in the air, per CNBC.
  • However, the company is still facing a congressional investigation. Hundreds of pages of internal messages show employees mocked federal regulators and joked about potential software flaws in the 737 MAX prior to the deadly crashes, per the New York Times.

Go deeper: Boeing CEO Dennis Muilenburg is out

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CNBC: Boeing to take $10 billion loan to cover 737 MAX fallout

Workers walking into a 737 factory on Dec. 16. Photo: Stephen Brashear/Getty Images

Boeing is in talks to borrow $10 billion or more, as the company copes with rising compensation claims from two fatal 737 Max crashes in the last two years, CNBC reports.

Why it matters: Analysts believe Boeing's expenditures could amount to more than $15 billion in the first half of 2020, according to the Wall Street Journal.

Go deeperArrowJan 20, 2020

Justice is elusive for Boeing's 346 plane crash victims

Illustration: Aïda Amer/Axios

Boeing is navigating how to handle the $100 million compensation fund it set up for the families of crash victims, even as a pledge by its former CEO to fatten the fund seems uncertain.

Why it matters: Boeing is pulling out all stops to appease Wall Street over the grounding of its 737 MAX, but it is saying little about the issue of restitution for the families of the hundreds who died due to faulty technology onboard its flagship plane.

Boeing gets a bailout, but economy still faces trouble

Data: Investing.com; Chart: Axios Visuals

Boeing secured commitments of over $12 billion in financing from more than a dozen banks, CNBC reported Monday, citing unnamed sources.

Why it matters: The bailout will help Boeing maintain a healthier cash position as it deals with the fallout from a mandatory production stoppage of its 737 MAX jet after two crashes that killed hundreds of people.

Go deeperArrowJan 28, 2020