Boeing is struggling with financial investors following a net drop in commercial plane orders in 2019 as its protracted 737 MAX crisis weighs heavily on operations, AFP reported on Tuesday January 14th.
The aerospace giant has estimated costs of the MAX grounding at more than $9 billion to date and is expected to disclose significant additional costs during its fourth-quarter earnings release on January 29th.
This month, Boeing faces rising costs from halting production of the MAX, compensating airlines for lost flights and assisting its supply chain.
On January 13th, Boeing's new chief executive, David Calhoun, officially began his duties as the US plane maker battles to recover from two fatal crashes of 737 MAX planes that killed 346 people in five months.
Calhoun, 62, was named chief executive on December 23rd amid growing concerns about the company's relationship with regulators and its handling of the MAX.
Calhoun has highlighted the safe return to service of the MAX as a top priority, along with repairing the company's relationships with regulators, airlines and lawmakers.
In December 2019, Boeing announced it was suspending production on the MAX as it seeks regulatory approval for upgrades to the plane following the Lion Air and Ethiopian Airlines crashes.
Besides cancelations, some of the drop in net orders was from customers who have "converted" MAX orders into a smaller number of orders for the larger 787 "Dreamliner" plane.
In addition, Boeing made just 380 plane deliveries for 2019, fewer than half the number the prior year.