Business Breakdowns

Boeing: Turbulent Times - [Business Breakdowns, EP.129]

37 snips
Sep 27, 2023
Jon Ostrower, founder and editor-in-chief of The Air Current, dives into the turbulent world of Boeing. He discusses the high costs of aircraft production, revealing expenses that can soar between $15 billion to $20 billion. The impact of the 737 MAX disaster on Boeing's strategy and operations is also explored. Ostrower highlights the long-term economic life of planes, lasting up to 30 years, and draws parallels between Boeing's evolution and Apple's journey in innovation. Tune in for insights into the future of commercial aviation amidst fierce competition.
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INSIGHT

Boeing and Airbus: Instruments of National Power

  • Boeing and Airbus are less like companies and more like extensions of their national patrons (US and EU, respectively).
  • They're instruments of soft power in a global competition for commercial dominance.
INSIGHT

Shifting Focus in Aerospace

  • The aerospace industry's focus shifted from "higher, faster, farther" to "faster, better, cheaper" with the jet age.
  • Lower operating costs (fuel burn, maintenance) are airlines' main concern, not performance.
INSIGHT

Boeing's Cyclical Business Model

  • Boeing's traditional business model involves riding demand waves, leading to production fluctuations and potential layoffs.
  • They primarily profit from building and delivering planes, with about two-thirds of the price paid on delivery.
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