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dev-jayson | 1 year ago

I'm no expert but who in the right mind agrees to getting paid in Boeing stocks?

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langsoul-com|1 year ago

Boeing is 64% of spirits revenue. Without Boeing, they don't exist anyway. Not to mention how Boeing's stock might be down, but they are not going to disappear at all.

Just from a strategic standpoint, USA has Boeing, EU Airbus and China has the Chinese Boeing /Airbus. Major aviation companies just aren't created any more, no major government would let their strategic assets fall like that.

Y_Y|1 year ago

China's commercial aerospace manufacturer is Comac, it was founded in 2008.

analognoise|1 year ago

Someone who knows how critical Boeing is (even in its depleted state) and thinks the government won’t let them fail?

Just hazarding a cynical guess.

paganel|1 year ago

This is Spirit’s current CEO [1]:

> Patrick Michael Shanahan (…) is a former United States federal government official who served as the acting United States Secretary of Defense in 2019.

which is to say that these are companies that are, in essence, controlled by the US Government when it comes to their strategic future, so in cases like this one here the money involved is of secondary importance.

[1] https://en.wikipedia.org/wiki/Patrick_M._Shanahan

JumpCrisscross|1 year ago

> which is to say that these are companies that are, in essence, controlled by the US Government

Shanahan was in government for two years under a different administration, after 31 years at Boeing, and then returned to the private sector at the helm of a publicly-traded company. Nothing about this screams “controlled by the U.S. government.”

Xylakant|1 year ago

Depends on the stock you’re trading in, and judging from the news, spirit stock might just be even less solid than Boeing. As far as I understand, a lot of Boeings issues are connected to Spirit as a subcontractor. At the very least, you can rest assured that the US government won’t let Boeing fail completely.

hipadev23|1 year ago

Uhh, it’s a public traded company, you sell the stock if you don’t have faith in the company fixing things.

There are two commercial airline manufacturers in the world and a rapidly growing global population. Boeing has a 10+ year manufacturing backlog of 5600+ aircraft. Airbus has a backlog of about 7500. Both companies produce around 550 commercial units a year.

sofixa|1 year ago

> Both companies produce around 550 commercial units a year

Boeing has significantly lower production rates nowadays - due to supply chain issues and massive incompetence that led to a near crash. For the 737 Max, their highest selling model, they're capped at 38 by the FAA, below the 45 they did last year and well below their 57 target (all figures in per month).

Their only other jet in manufacturing is the 787 which has a healthy backlog.

The 777X is delayed for years and won't see any deliveries before 2026.

Also, they have union negotiations with two important unions that have been saving money for years for a strike coming up in the next few months. And they're in the midst of a CEO change after the previous CEO was ousted by airline customers. Oh and their credit rating is on its way to a downgrade, meaning it will become even more expensive for them to get the loans they need to fix themselves.

Boeing are not going to get any better any soon. It will take years of hard effort and lots of money, which means their stock will be in the gutter for years to come.

stouset|1 year ago

People don’t seem to understand this simple reality about the stock market. Pessimism or optimism about a company’s future is already priced in. People don’t wait for a company to fail before they start selling.