‘Too big to fail.’ Now, where have we heard
those words before?
Oh yeah, they made a
whole movie about it in 2011 about the collapse of the housing market in 2008.
Those haunting words came
back again when Bank of America analysts said that Boeing was too big to
fail and sighted the reason being that the airplane manufacturer was only
one of two major companies that specialized in what it does.
“Boeing
remains uniquely positioned to the robust air traffic demand environment, with
the moat that the duopoly creates,” Ronald Epstein, an analyst at Bank of
America who covers airlines, wrote in an update. “However, on the other hand,
turning around operations could take time and uncertainties remain in the near
future.”
Boeing and its protocols and safety practices have been under intense scrutiny since a January 5 incident when a door panel fell off an Alaska Airlines plane mid-flight. The company, along with Airbus, is one of the two largest airplane makers in the world.
The uncertainties he mentioned include trying to buy back a former division that became Spirit Aerosystems, a search for a new CEO for David Calhoun, who is retiring at the end of the year, And the internal strife that has ensued this year.
The company
has also
lost more than $30 billion over the last five years.
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