Covid’s timing was devastating for Boeing and the 737 Max.
When the planes were grounded, Boeing kept producing them assuming the issue would be resolved quickly. As of January 2020, slightly before Covid, they had 400 planes built, but not delivered to customers (and so customers haven’t paid for them). Boeing was funding these aircraft with debt.
All of a sudden, demand for air travel drops off a cliff.
All those airlines now decide “I’m just not going to take delivery of those aircraft”. Which also means “I’m not going to pay for them”.
Had the timing gone in the other order, all of those aircraft would have been delivered, and paid for, and airlines would have been holding the bag. (and the covid crisis would have limited the damages airlines could claim, and thus demand from Boeing, if they could meet their reduced schedules with other aircraft).
When the planes were grounded, Boeing kept producing them assuming the issue would be resolved quickly. As of January 2020, slightly before Covid, they had 400 planes built, but not delivered to customers (and so customers haven’t paid for them). Boeing was funding these aircraft with debt.
All of a sudden, demand for air travel drops off a cliff.
All those airlines now decide “I’m just not going to take delivery of those aircraft”. Which also means “I’m not going to pay for them”.
Had the timing gone in the other order, all of those aircraft would have been delivered, and paid for, and airlines would have been holding the bag. (and the covid crisis would have limited the damages airlines could claim, and thus demand from Boeing, if they could meet their reduced schedules with other aircraft).