Exclusive: Boeing's CEO says the financial fallout from 737 MAX groundings would not slow its appetite for deals in the aircraft services sector, which has higher margins
EVERETT, Wash. - Boeing Co’s chief executive said on Tuesday that the financial fallout from the grounding of its 737 MAX jetliner would not slow the world’s largest planemaker’s appetite for deals in the higher-margin aircraft services sector.
“We have the financial capacity to manage the MAX situation and continue to make our investments for the future,” he said. Meanwhile, Muilenburg aims to expand the services business that includes aircraft parts, maintenance and analytics to $50 billion in revenue in a decade from its 2018 revenue of about $17 billion.
Reuters reported last week that Boeing told suppliers it will ramp back up to pre-crash production rates of 52 aircraft per month in February and reach a record 57 aircraft per month in June. Investors took that as a sign of optimism that the MAX will fly again commercially as early as October. Although the MAX issue has diverted engineering resources and attention from other aircraft programs, Muilenburg said development work on a potential new middle-of-the-market aircraft, or NMA, “hasn’t been halted.”
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