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Year 2025, Volume: 06 Issue: 01, 36 - 44, 06.05.2025

Abstract

References

  • Anselmo, J.C., 2009. Boeing 787 late delivery penalties reach $5.1 billion. Available at: https://aviationweek.com/boeing-787-late-delivery-penalties-reach-51-billion (accessed 25 December 2023).
  • Asian Aviation, 2023. Boeing reports operating loss in Q4, available at; https://asianaviation.com/boeing-reports-operating-loss-in-q4/ (accessed 01 December 2023).
  • Attarwala, F., 2023. Boeing and Spirit AeroSystems shares drop as defect delays 737 MAX deliveries. Available at: https://www.investopedia.com/boeing-and-spirit-shares-drop-as-defect-delays-737-max-deliveries-7852168 (accessed 2 December 2023).
  • Behrens, A., 2010. Managing the supply chain across the aerospace lifecycle, published in: Taxal, pp.2, March, available at: https://www.plm.automation.siemens.com/zh_tw/Images/21676_tcm943-99260.pdf, (accessed 1 Dec. 2023)
  • Boeing., 2023. General Information, available at: https://www.boeing.com/company/general-info/, (accessed 1 December 2023)
  • Chakrabarty, S., Bass, A.E., 2013. Comparing virtue, consequentialist, and deontological ethics based corporate social responsibility: Mitigating microfinance risk in institutional voids. Journal of Business Ethics, 126, 487-512.
  • Cioroianu, I., Corbet, S., Charles Larkin, C., 2021. Guilt through association: Reputational contagion and the Boeing 737-MAX disasters, Economics Letters, Volume 198, https://doi.org/10.1016/j.econlet.2020.109657
  • CNBC, 2023. Airbus and Boeing jet delivery delays spark penalties battle. available at: https://www.cnbc.com/2023/01/18/airbus-and-boeing-jet-delivery-delays-spark-penalties-battle.html (accessed 28 December 2023).
  • Cole, D., 2019. Boeing’s South Carolina plant faces production issues that ‘have threatened to compromise safety’. available at: https://www.cnn.com/2019/04/20/politics/boeing-south-carolina-plant/index.html (accessed 18 December 2023).
  • Collings, D., Corbet, S., Hou, Y.G., Hu, Y., Larkin, C., and Oxley, L., 2022. The effects of negative reputational contagion on international airlines: The case of the Boeing 737-MAX disasters, International Review of Financial Analysis, Volume 80. https://doi.org/10.1016/j.irfa.2022.102048
  • Coombs, W.T., 2010. Crisis communication: A developing field, in Heath, R.L. (Ed.). The Sage Handbook of Public Relations, Sage, Thousand Oaks, CA, 477-488.
  • Ernst, H., 2002. Success factors of new product development: a review of the empirical literature. International Journal of Management Review, 4 (1), 1-40.
  • FAA., 2014. Boeing 787-8 Critical Systems Review Team. Boeing 787-8 design, certification, and manufacturing systems review. Washington, D. C.: Federal Aviation Administration; 2014.
  • Gates, D., 2023. Boeing reports quarterly loss but points to higher jet production ahead. available at: https://www.seattletimes.com/business/boeing-aerospace/despite-defense-side-charges-boeing-reports-smaller-loss (accessed 2 December 2023).
  • Imad, A. R., Elbuzidi, K.J.S., and Chan, T.J., 2021. Crisis management and communication approach: A case of Boeing 737 MAX. Journal of Arts and Social Sciences, 4(2), 7-14.
  • Isidore, C., 2023. Here’s what Boeing blames for its big loss, available at: https://edition.cnn.com/2023/01/25/investing/boeing-results/index.html (accessed 2 December 2023)
  • Jelac, M.S., Boljevic, A., 2016. Critical Success Factors and Negative Effects of Development-The Boeing 787 Dreamliner, Strategic Management, Vol. 21 (2016), No. 1, pp. 030-039
  • Jordan, W.A., 1998. Excessive aircraft orders: A predictor of airline losses. Pp. 586-599
  • Kamble, Ch., Mhatre, A., Shah, A., and Malim, S., 2023. Reviving The Boeing Project by Using Project Management Methodologies, Clark University, School of Professional Studies. 2. available at: https://commons.clarku.edu/graduate_school_professional_studies/2 (accessed 02 December 2023).
  • Konert, A., 2019. Aviation accidents involving Boeing 737 MAX: legal consequences. Ius Novum, 13(3), 119-133.
  • Kuczynski, J., Wang, C., Glass, M., and Hoffman, F., 2021. Boeing 737 MAX: A case study of failure in a supply chain using system of systems framework. UMBC Faculty Collection. https://doi.org/10.48009/1_iis_2021_51-62.
  • Lu, H., 2013. Design and Analysis of a Materials Management System for Boeing Commercial Airplanes'(The Boeing Company) Metallic Raw Material Supply Chain with a Focus on Lead Time Manipulation and Corresponding Effects on Inventory and Cost.
  • Lu, K., 2010. The future of metals. Science, 328(5976), 319-320.
  • Matthews, K., 2019. Boeing is doing crisis management all wrong – here’s what a company needs to do to restore the public’s trust, available at: https://theconversation.com/boeing-is-doing-crisis-management-all-wrong-heres-what-a-company-needs-to-do-to-restore-the-publics-trust-114051 (accessed 02 December 2023).
  • Miron-Spectar, E., Erez, M., Naveh, E., 2011. The Effect of Conformist and Datetentive-to-detail Members on team Innovation: Reconciling the Innovation Paradox. Academy of Management Journal, 54 (4),740-760.
  • Mocenco, D., 2015. Supply Chain Features of The Aerospace Industry Particular Case Airbus and Boeing, Scientific Bulletin – Economic Sciences, University of Pitesti, vol. 14(2), pages 17-25.
  • Oxborrow, I., 2022. Boeing confirms 777X delayed until 2025, with production paused through to 2023. available at: https://www.thenationalnews.com/business/aviation/2022/04/28/boeing-confirms-777x-delayed-until-2025-with-production-paused-through-2023/ (accessed 15 December 2022).
  • Palmer, C., 2020. The Boeing 737 Max saga: automating failure. Engineering, 6(1), 2-3. doi: 10.1016/j.eng.2019.11.002
  • Pandian, G., Pecht, M., Enrico, Z.I.O., and Hodkiewicz, M., 2020. Data-driven reliability analysis of Boeing 787 Dreamliner. Chinese Journal of Aeronautics, 33(7), 1969-1979.
  • Reid, C., 2023. Boeing discovers new issue that affects near-term 787 deliveries. available at: https://simpleflying.com/boeing-787-issue-affect-deliveries-june-2023/ (accessed 2 December 2023).
  • Richardson, L.K., 1969. Financing and Risk Sharing in Commercial Airplane Programs, Financial Analysts Journal, Vol. 25, No. 3, pp. 37-48, Published by: CFA Institute: http://www.jstor.org/stable/4470518.
  • Schmuck, R., 2021. Global supply chain quality integration strategies and the case of the Boeing 787 Dreamliner development. Procedia Manufacturing, 54, 88-94.
  • Sodhi, M. S., Tang, C.S., Sodhi, M.S., and Tang, C.S., 2012. Application: Mitigating New Product Development Risks—The Case of the Boeing 787 Dreamliner. Managing supply chain risk, 161-179.
  • Sumner, T., 2019. 1of x: BEST analysis of what really is happening on the #Boeing737Max, available at: https://threadreaderapp.com/thread/1106934362531155974.html (accessed 15 December 2023).
  • Tang, C.S., Zimmerman, J.D., & Nelson, J.I., 2009. Managing New Product Development and Supply Chain Risks: The Boeing 787 Case. Supply Chain Forum: An International Journal, 10(2), 74–86. doi:10.1080/16258312.2009.11517219
  • Thomas, G., 2022. Boeing Delays 777X Deliveries to 2025 as FAA Scrutiny Bites, available at: https://www.airlineratings.com/news/boeing-delays-777x-deliveries-2025-as-faa-scrutiny-bites/ (accessed 22 December 2023).
  • Treuner, F., Hübner, D., Baur, S., Wagner, S.M., 2014. A survey of disruptions in aviation and aerospace supply chains and recommendations for increasing resilience. Supply Chain Management, 14(3), 7-12.
  • Tzu-Ching, H., 2007. A comparative analysis of supply chain management practices by Boeing and Airbus: long-term strategic implications, Thesis (S.M.) --Massachusetts Institute of Technology, Dept. of Civil and Environmental Engineering. Pp. 127-131), http://hdl.handle.net/1721.1/38579.
  • Woo, A., Park, B., Sung, H., Yong, H., Chae, J., and Choi, S., 2021. An analysis of the competitive actions of Boeing and airbus in the aerospace industry based on the competitive dynamics model. Journal of Open Innovation: Technology, Market, and Complexity, 7(3), 192.
  • Xu, J., Su, H., and Zhang, H., 2021. Research on Design Collaboration of Aircraft Digital Mock up for Suppliers, Journal of Physics: Conference Series, Vol. 2006, N1, p 012066, IOP Publishing, doi:10.1088/17426596/2006/1/012066

A Financial Examination of the Causes of the Boeing Company's Late Aircraft Delivery

Year 2025, Volume: 06 Issue: 01, 36 - 44, 06.05.2025

Abstract

Intention of Boeing development of next generation aircraft types and representation to customers currently remains unsuccessful due to late delivery arising with technological and management problems. The evident challenges with Boeing-737 MAX, initial postponed delivery of Boeing-787 Dreamliner due to organizational processes on supply chain and current delays in Boeing-767 and Boeing-777 types impact on financial performance of the company. Therefore, the aim of the study is to analyze reason and to identify critical factors influenced by the delivery process and reveal the financial losses due to postponed aircraft delivery. The result of the study indicates that Boeing has unpredictable problems on behalf of customers and intense pressure by stakeholders to pay late delivery penalties which significantly impact on production schedule and financial downturn.

References

  • Anselmo, J.C., 2009. Boeing 787 late delivery penalties reach $5.1 billion. Available at: https://aviationweek.com/boeing-787-late-delivery-penalties-reach-51-billion (accessed 25 December 2023).
  • Asian Aviation, 2023. Boeing reports operating loss in Q4, available at; https://asianaviation.com/boeing-reports-operating-loss-in-q4/ (accessed 01 December 2023).
  • Attarwala, F., 2023. Boeing and Spirit AeroSystems shares drop as defect delays 737 MAX deliveries. Available at: https://www.investopedia.com/boeing-and-spirit-shares-drop-as-defect-delays-737-max-deliveries-7852168 (accessed 2 December 2023).
  • Behrens, A., 2010. Managing the supply chain across the aerospace lifecycle, published in: Taxal, pp.2, March, available at: https://www.plm.automation.siemens.com/zh_tw/Images/21676_tcm943-99260.pdf, (accessed 1 Dec. 2023)
  • Boeing., 2023. General Information, available at: https://www.boeing.com/company/general-info/, (accessed 1 December 2023)
  • Chakrabarty, S., Bass, A.E., 2013. Comparing virtue, consequentialist, and deontological ethics based corporate social responsibility: Mitigating microfinance risk in institutional voids. Journal of Business Ethics, 126, 487-512.
  • Cioroianu, I., Corbet, S., Charles Larkin, C., 2021. Guilt through association: Reputational contagion and the Boeing 737-MAX disasters, Economics Letters, Volume 198, https://doi.org/10.1016/j.econlet.2020.109657
  • CNBC, 2023. Airbus and Boeing jet delivery delays spark penalties battle. available at: https://www.cnbc.com/2023/01/18/airbus-and-boeing-jet-delivery-delays-spark-penalties-battle.html (accessed 28 December 2023).
  • Cole, D., 2019. Boeing’s South Carolina plant faces production issues that ‘have threatened to compromise safety’. available at: https://www.cnn.com/2019/04/20/politics/boeing-south-carolina-plant/index.html (accessed 18 December 2023).
  • Collings, D., Corbet, S., Hou, Y.G., Hu, Y., Larkin, C., and Oxley, L., 2022. The effects of negative reputational contagion on international airlines: The case of the Boeing 737-MAX disasters, International Review of Financial Analysis, Volume 80. https://doi.org/10.1016/j.irfa.2022.102048
  • Coombs, W.T., 2010. Crisis communication: A developing field, in Heath, R.L. (Ed.). The Sage Handbook of Public Relations, Sage, Thousand Oaks, CA, 477-488.
  • Ernst, H., 2002. Success factors of new product development: a review of the empirical literature. International Journal of Management Review, 4 (1), 1-40.
  • FAA., 2014. Boeing 787-8 Critical Systems Review Team. Boeing 787-8 design, certification, and manufacturing systems review. Washington, D. C.: Federal Aviation Administration; 2014.
  • Gates, D., 2023. Boeing reports quarterly loss but points to higher jet production ahead. available at: https://www.seattletimes.com/business/boeing-aerospace/despite-defense-side-charges-boeing-reports-smaller-loss (accessed 2 December 2023).
  • Imad, A. R., Elbuzidi, K.J.S., and Chan, T.J., 2021. Crisis management and communication approach: A case of Boeing 737 MAX. Journal of Arts and Social Sciences, 4(2), 7-14.
  • Isidore, C., 2023. Here’s what Boeing blames for its big loss, available at: https://edition.cnn.com/2023/01/25/investing/boeing-results/index.html (accessed 2 December 2023)
  • Jelac, M.S., Boljevic, A., 2016. Critical Success Factors and Negative Effects of Development-The Boeing 787 Dreamliner, Strategic Management, Vol. 21 (2016), No. 1, pp. 030-039
  • Jordan, W.A., 1998. Excessive aircraft orders: A predictor of airline losses. Pp. 586-599
  • Kamble, Ch., Mhatre, A., Shah, A., and Malim, S., 2023. Reviving The Boeing Project by Using Project Management Methodologies, Clark University, School of Professional Studies. 2. available at: https://commons.clarku.edu/graduate_school_professional_studies/2 (accessed 02 December 2023).
  • Konert, A., 2019. Aviation accidents involving Boeing 737 MAX: legal consequences. Ius Novum, 13(3), 119-133.
  • Kuczynski, J., Wang, C., Glass, M., and Hoffman, F., 2021. Boeing 737 MAX: A case study of failure in a supply chain using system of systems framework. UMBC Faculty Collection. https://doi.org/10.48009/1_iis_2021_51-62.
  • Lu, H., 2013. Design and Analysis of a Materials Management System for Boeing Commercial Airplanes'(The Boeing Company) Metallic Raw Material Supply Chain with a Focus on Lead Time Manipulation and Corresponding Effects on Inventory and Cost.
  • Lu, K., 2010. The future of metals. Science, 328(5976), 319-320.
  • Matthews, K., 2019. Boeing is doing crisis management all wrong – here’s what a company needs to do to restore the public’s trust, available at: https://theconversation.com/boeing-is-doing-crisis-management-all-wrong-heres-what-a-company-needs-to-do-to-restore-the-publics-trust-114051 (accessed 02 December 2023).
  • Miron-Spectar, E., Erez, M., Naveh, E., 2011. The Effect of Conformist and Datetentive-to-detail Members on team Innovation: Reconciling the Innovation Paradox. Academy of Management Journal, 54 (4),740-760.
  • Mocenco, D., 2015. Supply Chain Features of The Aerospace Industry Particular Case Airbus and Boeing, Scientific Bulletin – Economic Sciences, University of Pitesti, vol. 14(2), pages 17-25.
  • Oxborrow, I., 2022. Boeing confirms 777X delayed until 2025, with production paused through to 2023. available at: https://www.thenationalnews.com/business/aviation/2022/04/28/boeing-confirms-777x-delayed-until-2025-with-production-paused-through-2023/ (accessed 15 December 2022).
  • Palmer, C., 2020. The Boeing 737 Max saga: automating failure. Engineering, 6(1), 2-3. doi: 10.1016/j.eng.2019.11.002
  • Pandian, G., Pecht, M., Enrico, Z.I.O., and Hodkiewicz, M., 2020. Data-driven reliability analysis of Boeing 787 Dreamliner. Chinese Journal of Aeronautics, 33(7), 1969-1979.
  • Reid, C., 2023. Boeing discovers new issue that affects near-term 787 deliveries. available at: https://simpleflying.com/boeing-787-issue-affect-deliveries-june-2023/ (accessed 2 December 2023).
  • Richardson, L.K., 1969. Financing and Risk Sharing in Commercial Airplane Programs, Financial Analysts Journal, Vol. 25, No. 3, pp. 37-48, Published by: CFA Institute: http://www.jstor.org/stable/4470518.
  • Schmuck, R., 2021. Global supply chain quality integration strategies and the case of the Boeing 787 Dreamliner development. Procedia Manufacturing, 54, 88-94.
  • Sodhi, M. S., Tang, C.S., Sodhi, M.S., and Tang, C.S., 2012. Application: Mitigating New Product Development Risks—The Case of the Boeing 787 Dreamliner. Managing supply chain risk, 161-179.
  • Sumner, T., 2019. 1of x: BEST analysis of what really is happening on the #Boeing737Max, available at: https://threadreaderapp.com/thread/1106934362531155974.html (accessed 15 December 2023).
  • Tang, C.S., Zimmerman, J.D., & Nelson, J.I., 2009. Managing New Product Development and Supply Chain Risks: The Boeing 787 Case. Supply Chain Forum: An International Journal, 10(2), 74–86. doi:10.1080/16258312.2009.11517219
  • Thomas, G., 2022. Boeing Delays 777X Deliveries to 2025 as FAA Scrutiny Bites, available at: https://www.airlineratings.com/news/boeing-delays-777x-deliveries-2025-as-faa-scrutiny-bites/ (accessed 22 December 2023).
  • Treuner, F., Hübner, D., Baur, S., Wagner, S.M., 2014. A survey of disruptions in aviation and aerospace supply chains and recommendations for increasing resilience. Supply Chain Management, 14(3), 7-12.
  • Tzu-Ching, H., 2007. A comparative analysis of supply chain management practices by Boeing and Airbus: long-term strategic implications, Thesis (S.M.) --Massachusetts Institute of Technology, Dept. of Civil and Environmental Engineering. Pp. 127-131), http://hdl.handle.net/1721.1/38579.
  • Woo, A., Park, B., Sung, H., Yong, H., Chae, J., and Choi, S., 2021. An analysis of the competitive actions of Boeing and airbus in the aerospace industry based on the competitive dynamics model. Journal of Open Innovation: Technology, Market, and Complexity, 7(3), 192.
  • Xu, J., Su, H., and Zhang, H., 2021. Research on Design Collaboration of Aircraft Digital Mock up for Suppliers, Journal of Physics: Conference Series, Vol. 2006, N1, p 012066, IOP Publishing, doi:10.1088/17426596/2006/1/012066
There are 40 citations in total.

Details

Primary Language English
Subjects Production and Operations Management
Journal Section Research Articles
Authors

Tapdig Imanov 0000-0002-5667-5678

Shahrzad Safaeimanesh 0000-0002-1676-0907

Early Pub Date May 6, 2025
Publication Date May 6, 2025
Submission Date March 26, 2024
Acceptance Date February 17, 2025
Published in Issue Year 2025 Volume: 06 Issue: 01

Cite

APA Imanov, T., & Safaeimanesh, S. (2025). A Financial Examination of the Causes of the Boeing Company’s Late Aircraft Delivery. International Journal of Aviation Science and Technology, 06(01), 36-44.

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