I was reminded of all the Boeing stories Steve203 has shared with us…
Now, it appears that Airbus is planning to use the same strategy for its smaller A220 model, which it acquired from Bombardier a few years ago when the Canadian aircraft manufacturer was forced to sell its troubled aircraft program to the European aerospace giant following a legal dispute with Boeing.
This time, however, Boeing does not have a similar option, leaving it vulnerable against its European rival. Burdened with $57 billion in debt and the ongoing consequences of two crashes involving its 737 MAX model, the American aircraft manufacturer recently admitted that it will not design a new aircraft in the next ten years.
Designing an aircraft means spending big money today to earn money at a later date. The Boeing executives would rather share in those funds now and let the future handle itself. After all, the US government wouldn’t allow Boeing to go bankrupt - would it?
The honchos taking care of themselves is what got Boeing to a negative $17B of equity. So BA cedes the commercial space and lives off the government teat, just like Lockheed, which did not even attempt another airliner, after the L-1011.