Wednesday October 28, 2020
The US aircraft manufacturer Boeing is still in crisis: The corona pandemic and the 737-Max misery have made the company deep in the red for a year. The employees are now feeling this.
The US aircraft manufacturer Boeing wants to cut almost twice as many jobs as previously planned in the face of a long dry spell. “We are assuming a workforce of around 130,000 by the end of 2021,” wrote CEO Dave Calhoun in a letter to the employees. Most recently, Boeing had around 160,000 employees, originally ten percent of the jobs were to be cut. The group is adapting to the reality of the market in the corona pandemic.
According to the Boeing management, the number of passengers in air traffic will only return to the level of the time before the corona pandemic in three years. By the end of this year, 30 to 35 percent of the 2019 traffic would be reached, Calhoun told CNBC television. Only in 2022 will the Airbus rival gradually ramp up production of the 737 short-haul aircraft to 31 per month.
The third quarter was the fourth in a row that Boeing was in the red. The operating loss was from July to September at $ 754 million, as the group announced. A year earlier, Boeing had made $ 895 million in profits. Revenue slumped 29 percent to $ 14.1 billion as airlines and leasing companies postpone their orders in the face of ailing flight operations – many of them worldwide are on the verge of bankruptcy. In the third quarter alone, there was an outflow of $ 4.8 billion (free cash flow), twice as much as a year ago. After nine months, the negative cash flow adds up to 14.4 billion euros, and debt has tripled to 61 billion dollars within a year.
Boeing is still suffering from the failure of its problem model 737 Max, which has been banned from flying for 19 months after two fatal crashes and is fighting for its re-registration. The US aviation security agency FAA is likely to end the mandatory break in November. The group pointed out that the 737 Max had now 1400 test flights with more than 3000 flight hours behind it. In the third quarter, Boeing delivered 28 passenger aircraft, less than half the volume from a year ago. Since the beginning of the year, deliveries have slumped by two thirds and sales in civil aviation by 54 percent. Thanks to government contracts for the military aircraft division, Boeing can cushion part of the losses. Sales only decreased slightly in this area.