HeffX-LTN ALERT: Boeing in crisis, what the future holds.
Boeing (NYSE:BA) is not in a great place right now. Garuda has just cancelled 49 B737 MAX planes and is trying to return the 1 they have, as they believe their passengers do not have confidence in the plane. This order was worth $6-B.
Lion Air reportedly switched a $22-B, 200-plane order to rival Airbus (OTCMKT:EADSY) after the crash in October. If other airlines follow suit, the effect could be a disaster for the iconic US airplane company.
Boeing is surviving, but there will undoubtedly be some very rocky times ahead for the manufacturer. Boeing has lost $40+ in market value since the Ethiopian Airlines crash.
This is not the end of Boeing, we watch and we wait to see what happens next.
It would be a braver person than me who chooses to board a Boeing 737 MAX in the near future, and I am not alone.
If airlines continue to respond to passenger fear by cancelling their orders, the $40-B loss in market value may just be the beginning of the slide.
Note: Federal Aviation Administration (FAA) grounded the Boeing 737 Max, planes were not left stranded where they were at the time of the halt. The grounded planes were flown thousands of miles across the country since the suspension as airlines move the planes to designated locations for storage to wait for the halt to be lifted.
HeffX-LTN’s overall technical analysis of BA for the week ending 23 March 2019 is Neutral to Bearish near term.