As the Chinese protests continue to grow and take up most of the news, another major event happened that will almost certainly hurt The Boeing Company ( NYSE:BA ), the American plane maker. After giving it approval in September, China’s aviation authority recently gave its national company COMAC a production licence to start making its narrow-body airliner C919 in large quantities. This is a significant setback for Boeing, which still has 138 737 MAXs in its inventory that it can’t sell to Chinese customers because the Chinese government agency that grounded the plane in 2019 hasn’t recertified it yet.
Also, the worsening of Sino-American relations and China’s decision to give a big contract to Airbus SE ( OTCPK:EADSY ) to deliver more than 300 planes to its state-run airlines over the next few years show that Boeing is about to lose its dominant position in one of the largest aviation markets in the world because of geopolitics. Worse, it looks like Boeing has yet to sell any of its planes made for Chinese customers to customers from other countries. With each passing year, their hopes of getting back into the Chinese market are fading. So, it’s safe to say that Boeing will continue to struggle to change since the safety problems that caused the 737 MAX to be grounded still haunt the company.
Hope Isn’t a Choice
Late in October, Boeing reported its earnings for the third quarter , which saddened many investors. Even though the company’s sales went up 4.5% from last year to $15.96 billion, they were $1.95 billion less than what was expected. At the same time, the company’s non-GAAP earnings per share (EPS) was -$6.18 instead of the $0.07 tha...
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