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

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.

Keywords

• Boeing aircrafts,
• Delivery,
• Delay,
• Supply Chain

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