Shares in Boeing fall sharply after President Trump orders the grounding of all 737 Max planes.
The Max 8 is Boeing's "cash cow," said one aviation consultant. "It’s a big deal financially. It’s also a big deal reputationally."
Boeing developed the 737 Max 8 to replace the aging 737-800 — an airline workhorse for short- and medium-haul flights. “There are thousands on order, hundreds in service — it’s their cash cow. It’s a big deal financially. It’s also a big deal reputationally,” said airline industry consultant Robert W. Mann.
Industry experts said it was too early to tell if the reasons behind the two crashes were linked. “It’s going to come down to what the data recorder and cockpit recorder readout tell us, but presumably there are things you could do if you thought that MCAS was a factor in this as well,” Mann said. “You’re talking about conceivably in the hundreds of millions of dollars,” said Richard Aboulafia, vice president of analysis at Teal Group. That would be enough to cripple many companies, but Boeing’s $212 billion market cap means it will eventually bounce back. “It would sting but it’s hardly what you’d call a threat to the company’s well-being,” he said.
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