[BoneCollector]

Originally Posted by Sutripta

resulting in this.

Regards
Sutripta

Boeing is indeed suspending 737MAX's production from January 2020. They have nearly 400 of them in storage as the production was going on at 40 planes per month even with flights being suspended.

Link

CHICAGO, Dec. 16, 2019 — Safely returning the 737 MAX to service is our top priority. We know that the process of approving the 737 MAX’s return to service, and of determining appropriate training requirements, must be extraordinarily thorough and robust, to ensure that our regulators, customers, and the flying public have confidence in the 737 MAX updates. As we have previously said, the FAA and global regulatory authorities determine the timeline for certification and return to service. We remain fully committed to supporting this process. It is our duty to ensure that every requirement is fulfilled, and every question from our regulators answered.

Throughout the grounding of the 737 MAX, Boeing has continued to build new airplanes and there are now approximately 400 airplanes in storage. We have previously stated that we would continually evaluate our production plans should the MAX grounding continue longer than we expected. As a result of this ongoing evaluation, we have decided to prioritize the delivery of stored aircraft and temporarily suspend production on the 737 program beginning next month.

We believe this decision is least disruptive to maintaining long-term production system and supply chain health. This decision is driven by a number of factors, including the extension of certification into 2020, the uncertainty about the timing and conditions of return to service and global training approvals, and the importance of ensuring that we can prioritize the delivery of stored aircraft. We will continue to assess our progress towards return to service milestones and make determinations about resuming production and deliveries accordingly.

During this time, it is our plan that affected employees will continue 737-related work, or be temporarily assigned to other teams in Puget Sound. As we have throughout the 737 MAX grounding, we will keep our customers, employees, and supply chain top of mind as we continue to assess appropriate actions. This will include efforts to sustain the gains in production system and supply chain quality and health made over the last many months.

We will provide financial information regarding the production suspension in connection with our 4Q19 earnings release in late January.


Boeing statement

[Jeroen]

So how many of these 737 Max are grounded and where are they all kept I hear you say. The internet has the answer, well over 700 Max planes at over a hundred locations.

https://www.flightradar24.com/blog/w...ax-are-stored/

[Jeroen]

Dennis has left the building

https://edition.cnn.com/2019/12/23/b...urg/index.html

Jeroen

[Sutripta]

^^^
So ultimately the Starliner broke the camels back!?

Regards
Sutripta

[Sutripta]

Originally Posted by BoneCollector

Spice Jet has grounded it's 3 Boeing 737 freighters after defects were found in them.

Back in service now I believe

Regards
Sutripta

[Jeroen]

It is such a sad story to read to your kiddies

[Sutripta]

This is expected, but this? Does not make sense, at least to me.

Regards
Sutripta

[V.Narayan]

Originally Posted by Sutripta

This is expected, but this? Does not make sense, at least to me.

Regards
Sutripta

The impact on the Indian IT sector is very true. I speak from direct experience. I don't know if the impact is $1.0 bn or more or less. Aerospace is a massive consumer of IT services not just for the significant amount of software that goes into the actual product and its engines but all the software that goes into the production process and supply chain.

[Jeroen]

Originally Posted by Sutripta

This is expected, but this? Does not make sense, at least to me.

Why not? It is all part of the supply chain of Boeing. They halt production the whole supply chain is going to suffer, from parts to manufacturing to service provider. The Indian IT companies are not just supplier to Boeing, in many cases they are also supplying services to Boeing Suppliers. So they get hit directly and indirectly too.

They might be providing just regular IT type of service to some of the suppliers (and Boeing too). When you scale production down, everything needs to scale down. Staff, facilities, catering, IT, HR, Payroll, etc. etc.

Jeroen

[Sutripta]

Originally Posted by V.Narayan

I don't know if the impact is $1.0 bn or more or less. Aerospace is a massive consumer of IT services not just for the significant amount of software that goes into the actual product and its engines but all the software that goes into the production process and supply chain.

Unlikely that any significant percentage is product development related. So support/ enabled services.

Support services likely to be spread across the globe.
Tied to a single model.
$1 bn = INR 7000 crore.

Still think it's unlikely.

Regards
Sutripta

PS - 787 with wrong configuration sent to Qatar Airways. So maybe slippages in the production planning and execution process. (Though I feel it was done with full knowledge of Qatar Airways.

Regards
Sutripta

[Jeroen]

Originally Posted by Sutripta

Support services likely to be spread across the globe.
Tied to a single model.
$1 bn = INR 7000 crore.

Still think it's unlikely.

It looks a little high. But then again, it depends a bit on how you count on these matters. Very often, especially on Service Contracts, the orders booked might be taken for the full term of the contract. So if you have a contract of five years with an annual value of 100, it might be booked as 500. If this contracts is terminated after two years, you will loose 300.

Even so, the numbers might be a bit spun up. I do not know if companies actively source across the globe. Most likely they will focus on not being too dependent on one particular player, but where that player resides tends to be less of an issue. (As long as it is in a stable country)

Originally Posted by Sutripta

PS - 787 with wrong configuration sent to Qatar Airways. So maybe slippages in the production planning and execution process. (Though I feel it was done with full knowledge of Qatar Airways.

I assume you are referring to this here: https://simpleflying.com/qatar-airwa...ack-to-the-us/

I do not believe that is due to Boeing wanting to make a delivery. Legally, that delivery can take place in the USA. It is just how it is framed in the contract. Typically carriers take delivery of their planes at the manufacturer site, after a very thorough hand over process and they fly the plane home by themselves.

The long shot I could think of was tax reasons for Qatar, which might require the plane to be physically present? But again that is a long shot.

Qatar would have had a whole team at the Boeing 787 facilities to take delivery of these four planes, so they knew down to the last bolt and nut what they were getting.

What I know of this QSuite is that it is a Qatar patented solution. Unlikely provided by Boeing I would think.

I remember many years ago, I happened to be invited to the Christening Party of one of KLM 747-400. A KLM team would take delivery of the 744 in the USA and they would fly it back to Amsterdam Schiphol. There KLM would literally tear into the aircraft and rip out several systems, but also the complete interior. KLM provided their own interior and seat. Due to legal constraints Boeing had to put an interior in so KLM always got the cheapest one fitted, flew it to Amsterdam, ripped it all out and fitted their own.

Not sure if these QSuite were to be provided and or fitted via Boeing, but probably not.

But it remains an odd story. Either there was some legitimate reason or somebody goofed up by the sound of it.

Jeroen

[Sutripta]

Originally Posted by Jeroen

The long shot I could think of was tax reasons for Qatar, which might require the plane to be physically present? But again that is a long shot.

Any local (Qatari) requirements/ problems, not just tax, can be tackled by the royal family. In the Emirates royal wishes are binding executive orders and commandments.

Regards
Sutripta

[Thad E Ginathom]

An Aside...

Originally Posted by Jeroen

Typically carriers take delivery of their planes at the manufacturer site, after a very thorough hand over process and they fly the plane home by themselves.

Goodness, it is exciting enough taking delivery of a new car and driving it home. Imagine what a plane would feel like. And I bet they worry about getting it scratched on that first trip!



/aside. Back to serious!

[Sutripta]

^^^
Before going back to serious. And totally totally OT.

Airplane getting scratched:- anyone following the story of a 737 going by road across the country (Calcutta to Rajasthan actually), and getting stuck under a bridge!

Regards
Sutripta

[Jeroen]

Originally Posted by Thad E Ginathom

Goodness, it is exciting enough taking delivery of a new car and driving it home. Imagine what a plane would feel like. And I bet they worry about getting it scratched on that first trip!
!

Well, if the Internet is to be believed, these days Boeing is doing a very sloppy jog on delivery. Customers are complaining about dents (!), scratches on the fuselage, cockpit window, dirt, loose items etc. Not just the commercial aviation division. This has been ongoing in their military aviation division as well.

Taking delivery of your Boeing you need to be as careful as taking delivery of your new car!

Originally Posted by Sutripta

^^^

Airplane getting scratched:- anyone following the story of a 737 going by road across the country (Calcutta to Rajasthan actually), and getting stuck under a bridge!

Had not heard about that one yet.

Jeroen