Trump criticizes China for abandoning agreements on Boeing airplanes purchases
Backing Out of Deals: The Latest on Boeing and Plane Acquisitions
Got a ‘hot take’ on whether Boeing's stepping away from some plane deals? Check out this freshened-up rundown on the situation.
Boeing's Recent Moves
- Ramping Up 737 Production: Boeing's cranking out more 737 planes, targeting a monthly production rate of 38 by the end of the year. Their Q1 2025 earnings show a bump in Commercial Airplanes revenue to $8.1 billion, thanks to the delivery of 130 airplanes [1]. Despite no recent official news, there have been some adjustments in the delivery schedule for 737 MAX 7 aircraft by Southwest Airlines due to certifications [4].
- Certification Hurdles: The certification process for the 737 MAX 7 and 10 models is still ongoing, with no changes yet. Boeing's got around 35 of these planes in inventory, awaiting certification. They've got an engineering solution in the works, which may clear the way for certification in 2025 [4].
- Digital Aviation Overhaul: Boeing's shaking things up with a $10.55 billion deal, selling portions of their Digital Aviation Solutions to Thoma Bravo. This move is hoped to streamline operations and give their balance sheet a much-needed boost. But fret not, Boeing's retaining its core digital capabilities for fleet maintenance services [2].
- Order & Delivery Shifts: No word yet on Boeing backing out of any deals, but Southwest Airlines' revised expectations for 737 MAX 7 deliveries hint at continuous uncertainties regarding certification and delivery timelines [4].
In a gist, Boeing hasn't announced a pull-out from any specific deals. However, adapting delivery expectations due to certifications issues and strategic business choices like selling parts of Digital Aviation Solutions are making waves in Boeing's world.
- Boeing's recent decision to sell portions of its Digital Aviation Solutions to Thoma Bravo for $10.55 billion is a part of their policy-and-legislation strategy to streamline operations and boost their balance sheet.
- In the general news, Boeing's 737 MAX 7 and 10 models are still undergoing the certification process, and there have been no changes or announcements regarding the deal from the government authorities or the company.
- Amid the ongoing certification hurdles for the 737 MAX 7 and 10 models, Boeing's strong commitment to production remains, aiming to manufacture 38 planes per month by the end of the year.
- Southwest Airlines has revised its delivery expectations for 737 MAX 7 aircraft due to certifications issues, implying continuous uncertainties in the politics and delivery timelines of Boeing's plane acquisitions.
