Boeing is the world's biggest manufacturer of jet aircraft, and one of only two companies - the other is Europe's Airbus - currently producing planes capable of carrying 100 passengers or more. Boeing's dominance is demonstrated by the fact that more than 70% of all commercial jets currently in service were manufactured by the company or one of its predecessors. Separately, the company is also one of the US Government's leading suppliers of military hardware, including F-15 and F/A-18 fighter jets, Apache and Chinook helicopters, spacecraft, missiles and weapons systems. That division alone generates revenues of around $26bn a year. However, the sharp contraction of the commercial airline industry from 2008 onwards posed a new set of challenges, combined with long delays on completion of Boeing's hotly anticipated Dreamliner 787 jet, which finally entered commercial service at the end of 2011 more than three years behind schedule. However the biggest seller in the portfolio, accounting for two-thirds or more of all deliveries, was still the smaller short- to medium-range 737 jet. An updated and more fuel-efficient version of that plane, the 737 MAX, began shipping to customers in 2017. However, in a disastrous development, all models were grounded worldwide in March 2019 after the plane was involved in two tragic crashes in which 346 people died. The company struggled to identify and fix the cause of the malfunctions, and the resulting suspension of operations involved astronomical costs and loss of earnings. The fallout from the 737 MAX crisis prompted the resignation of CEO Dennis Muilenberg at the end of 2019. His successor is David Calhoun, formerly chairman. In 2018, Boeing delivered 806 commercial aircraft to customers. Group revenues topped $100bn for the first time that year at $101.1bn, while net income was $10.5bn. However the 737 MAX problems prompted multiple cancelled sales, and the Covid pandemic created further major challenges during 2020. Deliveries of new aircraft more than halved in 2019, and again in 2020 to just 157 aircraft. That put topline into freefall - to just $58.2bn in 2020 - while costs and impairments resulted in a net loss of $11.9bn, only Boeing's second deficit in more than 20 years. Total costs associated with the 737 MAX failures could exceed $20bn. They include a $2.5bn settlement with the US Justice Department. Finally in Dec 2019 the first commercial passenger flight of a 737 MAX for almost two years took off from Miami Airport. The company was originally founded by William Boeing in 1916 to make seaplanes, and was an early pioneer in commercial travel and freight. The company's transportation division was demerged in 1934, to become United Air Lines. Boeing later absorbed several other aircraft manufacturers including its main US rival McDonnell Douglas in 1997.
Capsule checked 29th January 2020
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Who are the competitors of Boeing? The primary competitor is European counterpart Airbus, while Embraer and Bombardier compete in smaller aircraft.
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Adbrands Daily Update 14th Mar 2019: Boeing came under intense pressure when China and Indonesia became the first two countries to ground all flights by the company's 737 Max 8 jets, following the tragic aircrash in Ethiopia at the weekend. It was the second such crash involving the Max 8 in less than five months; the first involved an Indonesian airline. Both country's regulators broke with normal procedure to issue the temporary ban. Industry standards dictate that the safety regulator from the country that originally certified the aircraft as airworthy - in this case the US FAA - takes the lead in determining whether or not it should be grounded. China and Indonesia are two of the largest markets in Asia for the 737 Max 8 model, first introduced in 2017, with China alone accounting for more than 1 in 6 of all the models so far delivered by Boeing. The FAA responded with a confirmation of the plane's airworthiness. Yet despite that, a series of other countries followed suit in grounding the plane, first in Asia Pacific, and then elsewhere after the UK joined the boycott on Tuesday. Virtually every other major global market where the plane has been purchased followed suit over the next 24 hours. President Trump finally ordered the grounding of all planes in the US as well and Boeing suspended all deliveries of further Max 8s pending a full investigation.
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