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Liberty

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Slightly off-topic but I was on a flight from Addis with Ethiopian Airlines scheduled to depart 2min later than the crashed plane. Small delay and news got to us when we landed. Stewardesses obviously broke down when we got out at destination. Very odd and a good reminder of the value of life, even when considering the unlikeliness of dying in a plane crash.

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Slightly off-topic but I was on a flight from Addis with Ethiopian Airlines scheduled to depart 2min later than the crashed plane. Small delay and news got to us when we landed. Stewardesses obviously broke down when we got out at destination. Very odd and a good reminder of the value of life, even when considering the unlikeliness of dying in a plane crash.

 

Glad you were on a different flight and all right, Tom. Life shouldn't be taken for granted. It's so unlikely that we even exist... There's an unbroken line from us through our ancestors to the very primordial first replicating RNA billions of years ago. Any of our millions of ancestors (including pre-human) dies from some infection or a club to the head or gets eaten by a predator, and we vanish. Any other egg or sperm gets through at that time, and we vanish.

 

Anyway, sorry to get philosophical in a Boeing thread...

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Slightly off-topic but I was on a flight from Addis with Ethiopian Airlines scheduled to depart 2min later than the crashed plane. Small delay and news got to us when we landed. Stewardesses obviously broke down when we got out at destination. Very odd and a good reminder of the value of life, even when considering the unlikeliness of dying in a plane crash.

 

Glad you were on a different flight and all right, Tom. Life shouldn't be taken for granted. It's so unlikely that we even exist... There's an unbroken line from us through our ancestors to the very primordial first replicating RNA billions of years ago. Any of our millions of ancestors (including pre-human) dies from some infection or a club to the head or gets eaten by a predator, and we vanish. Any other egg or sperm gets through at that time, and we vanish.

 

Anyway, sorry to get philosophical in a Boeing thread...

 

Tom - glad to hear you are not on that flight.  A bit off topic but I remember my math 101 teacher who used to tell us he has to make the course tough, because he's afraid some one us will actually become engineers and it scares him when he flies. 

Not good news for Boeing. I am a shareholder .

 

Liberty-  the fact we are here under such a low probability outcome would lead some to suggest we were created...  debate for another time ! 

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Liberty-  the fact we are here under such a low probability outcome would lead some to suggest we were created...  debate for another time !

 

Created, by evolution through natural selection. Low probability events can happen (possibly frequently) in universes that have billions of galaxies that each have billions of stars with multiple planets and moons, over billions of years (with the possibly of even multiple parallel universes) on planets will thousands of not millions of ecosystem niches with slightly different local conditions... You just need a few primordial animo acids to combine into a barely adequate RNA replicator once in the chemical soup that is an ocean for the process to get started and for time and iteration and selection pressures to do their work. And the very fact that we're here wondering about it shows it's possible, it's the anthropic principle (if it hadn't happened, we wouldn't be here talking about it).

 

But yeah, let's move on!

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I don't think this is that bad for Boeing. Does it make for bad press? Yes. But these sort of, let's call them teething problems, are not uncommon for new aircraft models. Off the top of my head i can think of the 787 (catching fire and fuel leaks) - did not crash, and the DC-10 (doors blowing off) - did crash. They fixed them and the companies were fine.

 

The fact that Boeing's stock looks pretty overvalued is another issue and probably a bigger one for investors.

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EASA suspends all Boeing 737 Max operations in Europe: https://www.easa.europa.eu/newsroom-and-events/press-releases/easa-suspends-all-boeing-737-max-operations-europe

 

I was actually on a 737-max yesterday, flying home from a weekend vacation. I have never been scared of flying, but during the take-off I was really nervous. I have never given a second thought to the make/model of an airplane in my life, assuming (correctly I think) that all planes and companies that fly in Europe/US etc are safe. This is of course just anecdotal, but I wonder how big long-term impact this will have, even if it turns out the two crashes are not related, issues fixed etc. Not sure how cool I will be with flying a 737-max in a month or two, if the suspension is lifted.

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EASA suspends all Boeing 737 Max operations in Europe: https://www.easa.europa.eu/newsroom-and-events/press-releases/easa-suspends-all-boeing-737-max-operations-europe

 

I was actually on a 737-max yesterday, flying home from a weekend vacation. I have never been scared of flying, but during the take-off I was really nervous. I have never given a second thought to the make/model of an airplane in my life, assuming (correctly I think) that all planes and companies that fly in Europe/US etc are safe. This is of course just anecdotal, but I wonder how big long-term impact this will have, even if it turns out the two crashes are not related, issues fixed etc. Not sure how cool I will be with flying a 737-max in a month or two, if the suspension is lifted.

 

Correct. I believe a lot of people will cancel or change flights once they now they are flying in a 737max plane. I think LUV will be hardest hit, since they have the most 737max planes, at least in the US. I think it will also cost Boeing a few billion to address the findings.

I am surprised that BA isn’t down more. The Stock is a high flier ( pun) and still up ~15% YTD.

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To me this whole situation is way overblown.

 

- We have people with no engineering credentials saying to ground the planes (Mitt Romney)

 

- No evidence has been shown

 

- Black Box is being shipped to another "country"

 

- SW pilots just came out and backed the 737

 

- It's documented that since the LION Air crash US pilots have been briefed on changes and trained properly. It is interesting to note that individual airlines are responsible for the training and briefing. These other countries Don't have nearly the same standards as the FAA.

 

- People suggest the FAA is in the pocket of Boeing. I agree with this slightly, however they have grounded many of beings planes in the past. See 787 in 2013. So to me this doesn't fit the narrative.

 

Personally I believe the FAA is simply standing up for and behind their strict regulations, policies, guidelines, protocols, and exhaustive list of specifications. Could there be an issue? Absolutely, But there isn't anything to suggest that yet.

 

Either way, I'm long BA. This whole thing will blow over just like the Talc powder thing for JNJ two months ago. Plus it helps my DCA is low 200's  :)

 

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US orders all 737 Max 8,9s parked.

 

wabuffo

24 planes w/AAL... say that's 48 flights per day and each flight has 200 passengers paying $250/ride that's $876m of lost revenues over the course of the year

 

Southwest would lose $1.24B of revenues using the same metrics

 

maybe this mess lasts a quarter at worst?

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US orders all 737 Max 8,9s parked.

 

wabuffo

24 planes w/AAL... say that's 48 flights per day and each flight has 200 passengers paying $250/ride that's $876m of lost revenues over the course of the year

 

Southwest would lose $1.24B of revenues using the same metrics

 

maybe this mess lasts a quarter at worst?

 

Boeing was already working on a solution after LION Air. If this issue is the same, then I can't imagine this lasting very long. I wonder if other airlines will gouge customers on pricing due to supply/demand.

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US orders all 737 Max 8,9s parked.

 

wabuffo

24 planes w/AAL... say that's 48 flights per day and each flight has 200 passengers paying $250/ride that's $876m of lost revenues over the course of the year

 

Southwest would lose $1.24B of revenues using the same metrics

 

maybe this mess lasts a quarter at worst?

 

Two flights per day per plane seems low. In the US I would expect 6 to 8 flights. Canada 2 to 5.

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US orders all 737 Max 8,9s parked.

 

wabuffo

24 planes w/AAL... say that's 48 flights per day and each flight has 200 passengers paying $250/ride that's $876m of lost revenues over the course of the year

 

Southwest would lose $1.24B of revenues using the same metrics

 

maybe this mess lasts a quarter at worst?

 

Two flights per day per plane seems low. In the US I would expect 6 to 8 flights. Canada 2 to 5.

 

ok, triple the number then divide by 4 and that's a better number...

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US orders all 737 Max 8,9s parked.

 

wabuffo

24 planes w/AAL... say that's 48 flights per day and each flight has 200 passengers paying $250/ride that's $876m of lost revenues over the course of the year

 

Southwest would lose $1.24B of revenues using the same metrics

 

maybe this mess lasts a quarter at worst?

 

Two flights per day per plane seems low. In the US I would expect 6 to 8 flights. Canada 2 to 5.

 

ok, triple the number then divide by 4 and that's a better number...

 

FWIW: Air Canada has 24 Max 8's and reportedly handle 9000 to 12000 passengers per day (quote from an AC spokesman in an article I read earlier today). 

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US orders all 737 Max 8,9s parked.

 

wabuffo

24 planes w/AAL... say that's 48 flights per day and each flight has 200 passengers paying $250/ride that's $876m of lost revenues over the course of the year

 

Southwest would lose $1.24B of revenues using the same metrics

 

maybe this mess lasts a quarter at worst?

 

Two flights per day per plane seems low. In the US I would expect 6 to 8 flights. Canada 2 to 5.

 

ok, triple the number then divide by 4 and that's a better number...

 

FWIW: Air Canada has 24 Max 8's and reportedly handle 9000 to 12000 passengers per day (quote from an AC spokesman in an article I read earlier today).

 

that verifies the 2 KFR noted

 

less certain about US figures then? 

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