Air Transport World

Problems on the assembly line

Problems on the assembly line, late-delivery charges and cost overruns on the 737NG continued to haunt Boeing in the second quarter, as the company reported net income of $258 million, down 46% compared with the year-ago period. Boeing said its commercial-aircraft segment suffered a $10 million operating loss for the quarter, vs. income of $468 million in 1997.

Contributing to the lower results was a $78 million after-tax write-off related to the decision to end the MD-11 program. Boeing cited "continued pricing pressure and lower price-escalation trends," as well. Boeing is raising the list price of its jets 5%, although analysts are skeptical that this will have any meaning in the real world. …

Log in to your account to read this article – and millions more.