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by tomxor 1989 days ago
> The company said it already accounted for a bulk of those costs in prior quarters and expects to take a $743.6 million charge in its fourth-quarter 2020 earnings to cover the rest.

Sounds a bit like a like a fight club math answer. I wonder what a recall would have cost.

1 comments

No, I don't think so. Boeing lost a lot more than this just to market forces -- the cost of lost business, the cost of repairs, the loss of future good will. There is no way a recall coordinator with a global view of the company's welfare in mind would have made the decision to go forward.
I agree it probably would have been less expensive, but I'm not sold on the company necessarily believing that at the time.

> There is no way a recall coordinator with a global view of the company's welfare in mind would have made the decision to go forward.

When the information about the sensors and software first emerged everyone was saying there was no way any one engineer would have not spoken up about it... It was later relieved they outsourced the software development to $9/hr engineers. It wouldn't be surprising if their "recall coordinator" did not speak up for one reason or another.

Those $9 an hour engineers did not work on MCAS. They worked on one of the MFD's (Multi-Function Displays).
> Boeing lost a lot more than this just to market forces -- the cost of lost business, the cost of repairs, the loss of future good will.

How much did they actually lose? I mean, excluding coronavirus essentially destroying passenger airflight... Boeing does not have competition in many areas. The US military won't buy Airbus, Dassault or Saab planes, the NASA won't exclusively shift to SpaceX because ULA space flight is actually a job program. On the passenger airflight side the only competition is Airbus who have limited capacity.