What is keeping Boeing's share price so stable in the wake of such catastrophic news for the company this year?
In terms of the aircraft group, Boeing has steadily growing 787 orders and deliveries, with about 500 orders yet to deliver.
In terms of their space program, they are close to testing their manned capsule and just got a light touch program review, while SpaceX got put through the ringer.
And there are other aspects to Boeing that I'm not familiar with, but I'm sure don't relate directly to the 737 MAX.
As for Airbus, they have had to kill their A380 program, seemingly prematurely, in the face of declining interesting and cancelled orders. So, it's not all roses on the other side of the pond either.
I'm sure this will end well for them...
Boeing will not be allowed to fail, even if it personally bankrupts every taxpayer in the United States. And they know it.
Is this a reference to the Organizational Safety Assessments NASA announced in response to Elon Musk smoking pot on a livestream online?
I don't think that's a program review - more of a "are spacex employees smoking pot at work review."
If not, could you link to some info on the reviews you are referencing?
The biggest issue for Boeing is that the MAX sold about 5,000 frames vs 7,000 for the A320NEO, going from a 50%/50% market shares (737NG vs A320) down to 40%/60% market shares (737MAX vs A320NEO). On the other hand the A320 is practically sold out for the next decade (Airbus is aiming at a production of 750/year, and that's quite a challenge), so the ratio is unlikely to move much.
Weirdly enough, most of Air France & KLM fleet are comprised of Boeing planes
Are you sure about that? On WP I see 79 Boeing out of 223 planes for Airbus, but I’m not expert. Is there any wider fleet to consider? https://en.wikipedia.org/wiki/Air_France
KLM has 13 Airbus out of 123 airframes, that part is correct. https://en.wikipedia.org/wiki/KLM
HOP is mostly Bombardier/Embraer, etc.
They increased their dividend which will also support a higher share prices, but again this can only continue for a finte period.
And as another poster mentioned: Military contracts.
How so? They can't put tariffs on foreign planes purchased by foreign airlines, and most of the airlines in the world are not American.
"The World Trade Organization said on Thursday the United States had ignored its request to halt a subsidized tax break for Boeing Co in its main plane-making state of Washington as a 15-year-old transatlantic trade row edges towards tit-for-tat sanctions."
https://www.reuters.com/article/us-eu-usa-aircraft-wto/wto-s...
At least in China, the government is the one that has the final say on everything, and the state-owned corporations have to do what the government wants. Here, the corporations get to do what they want, but they still get subsidies from the government but without being required to operate in the interests of the government or the nation at large.
According to their most recent 10-K, the Defense, Space, and Security business unit represents about 23% of Boeing's revenue and 13% of their profit. Some portion of the Global Services revenue comes from government contracts as well, though, so the true contribution is higher.
https://www.sec.gov/cgi-bin/viewer?action=view&cik=12927&acc...
2. Even including the problems with the 737 max, Boeing has an exceptionally good safety record.
3. Regulatory capture of the FAA by Boeing is bad news for consumers, but not necessarily for shareholders.
4. Investing in aircraft manufacturers during a growing economy is reasonable and Boeing is one of only two airplane manufacturers positioned to take advantage of the trend.