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- cross-posted to:
- [email protected]
The United Airlines CEO says he is “disappointed” in ongoing manufacturing problems at Boeing that have led to the grounding of dozens of United jetliners, and the airline will consider alternatives to buying a future, larger version of the Boeing 737 Max.
United Airlines CEO Scott Kirby said Tuesday that Boeing needs “real action” to restore its previous reputation for quality.
Kirby’s comments came one day after United disclosed that it expects to lose money in the first three months of this year because of the grounding of its Boeing 737 Max 9 jets.
United has 79 of those planes, which federal regulators grounded more than two weeks ago after a panel blew out of an Alaska Airlines Max 9 in midflight, leaving a gaping hole in the plane. Investigators are probing whether bolts that help hold the panel in place were missing or broke off.
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For medium sized airplanes there’s Embraer.
Embraer’s largest plane the 195-E2 fits 146 in an all economy configuration. Boeing’s smallest plane the 737 max 7 has an all economy configuration capacity of 172. Embraer just doesnt make a plane in the same class as Boeing or airbus.
Believe it or not, this consolidation is almost certainly because of (good) regulation not capitalism.
The costs of building a new air frame are gigantic - the regulatory aspect in all countries is also gigantic. The barriers to entry are gargantuan - and the scale you need to be profitable is extreme.
But those regulations save lives. But they also keep competitors out.
There are also smaller ones like Embrauer and Bombardier.
Airlines live off of equipment depreciation. They are taxed less on their airframes age. Considering that, US taxpayers make up for that shortfall I would rather that US carriers buy US made airframes built by US workers. So, Boeing would be my pick.
Fire the MBAs. Fire McKinsey. Fire Wall Street. Hire back the engineers.
Wait… You don’t actually think the executives are actually going to switch from resource extraction mode to an invest in company strategy, right?
The world has become one big private equity firm. Barbarians in the throne room.
United CEO: It it’s a Boeing, nobody’s going.
? Over my head
Bring on the COMAC lolol