The aerospace industry was worth $838 billion globally in 2017, with commercial aircraft production making up 61% of the industry at $180.3 billion. In 2018, the value of new commercial aircraft was projected to be $270.4 billion. The document then provides details on key players in the commercial aerospace industry such as Boeing, Airbus, and Embraer. It discusses factors affecting the industry and provides a history of Boeing, including impacts from the Boeing 737 MAX issues, such as significant losses, undelivered orders, and effects on suppliers. Finally, it outlines actions Boeing is taking to address the 737 MAX issues through software updates, training improvements, and global outreach.

1. BOEING 737 MAX
GROUP : 6

2. The global aerospace industry was worth
$838 billion in 2017
INTRODUCTION
The aircraft production was worth $180.3 Billion:
61% airliners
14% business &general aviation
12% Military aircraft
10% military rotary wing
3% civil rotary wing
In 2018, the new commercial aircraft value is projected for $270.4 billion while business aircraft will
amount for $18 billion and civil helicopters for $4 billion.

3. KEY PLAYERS IN COMMERCIAL AEROSPACE
INDUSTRY
 Founded : July 15, 1916
 Headquarters : Chicago, Illinois.
 Revenue: US$ 76.56 Billion (2019)
 Loss : US$ 636 Million (2019)
 One of the largest global aerospace
manufacturers
 Second largest defense contractor in the
world
 Largest exporter in the United States by
dollar value.
 Ranked 24th on the "Fortune 500" list
(2018), ranked 64th in 2018,and ranked
19th on the "World's Most Admired
Companies" list (2018).
 Founded: 1August 19, 1969
 Headquarters: São Paulo, Brazil
 Revenue: R$ 19.8 billion
 Profit: R$2.74 billion (2019)
 produces commercial, military,
executive and agricultural aircraft
and provides aeronautical service
 third largest producer of civil
aircraft
 joint venture called Boeing Brasil
– Commercial in which Boeing
will own 80% of the new
company
 Founded: 18 December 1970
 Headquarters: Leiden, Netherlands
 Revenue: €70.5 Billion (2019)
 Profit: € 3.05 Billion (2019)
 Largest airliner manufacturer and took
the most airliner orders in 2019.
 Designs, manufactures and sells civil
and military aerospace products
 Three divisions: Commercial
Aircraft, Defence and Space,
and Helicopters
 In June 2013, Airbus announced that it
was developing a range of
"smart suitcases”

4. Growth and profitability of aerospace industry
• Globally, the aerospace industry is estimated to be more than US$838 billion
• commercial aerospace sector has experienced a decline in deliveries in 2019 due to
production-related issues in certain aircraft models.
• However, commercial aerospace sector growth is likely to recuperate from 2020
• Steep growth and profits in aerospace industry is projected
• 40,000 units expected to be produced over the next two decades

5. Factors Affecting Aerospace Industry
Terrorism, wars, recession or
the ongoing global economic
slowdown are some of the
economic factors affecting
aerospace industry drastically
technological changes have to be
adapted to include mobile
technologies as far as ticketing,
distribution, and customer
service are concerned
emergence of the Millennial
generation and increase in
personal disposable income
adds on to the aerospace
industry

6. Boeing
In 2018, Boeing has a massive revenue of $101
billion
In 2019, it had $76 billion accounting to 24%
change and losses of about $3billion
BRIEF HISTORY
• Founded in 1916 by William E Boeing and became Boeing
Air Company in 1917
• Boeing Model 2 was their first success
• US Navy made huge investments in Boeing
• With US being a big part in World War I, Boeing saw a huge
growth in revenues.
• It merged with McDonnel Doughlas in 1997
Current Situation of Boeing
• Currently Boeing is a strong acquiring force with
acquisitions of North American Aviation, MCDonnel
Doughlas, Rockwell International, Hughes Space &
Communication and Jeppesen
• 4 Business Verticals
1. Boeing Commercial Airplanes (BCA)
2. Boeing Integrated Defense Systems (BDS)
3. Boeing Global Services (BGS)
4. Boeing Capital (BC)

7. Product Portfolio
BCA:
Boeing 747, 737, 787
BDS:
Military Aircrafts,
Space Missions
BGS and BC:
For Training and
Funding small aircraft
businesses

8. Boeing 737 max vs Airbus A320 neo
Need for the change
• In 2016, Airbus A320NEO brought in higher
fuel efficiency
• It took market by storm as it was cheaper and
fuel efficient both
Boeing 737 max
• Increased fuel efficiency with composite fan blades
• More seating than A320NEO by 16 passengers
• Equal fuel efficiency

9. PICTURE OF CRASHED SCENE

10. 10
The Boeing 737Max Issue
In 2010, Airbus
announced its plan to
upgrade its A320,
single aisle aircraft
model, the direct
counterpart of B737
Boeing also announced its
plan to upgrade its B737
and renamed it as B 737
Max.
They started getting more
orders, but still it wasn’t
time for them to relax.
Pilots would only need a 2.5-hour iPad training to
fly and there wasn’t a proper training for pilots for
MCAS. Training material didn’t mention MCAS.
PROBLEM STARTED WITH THE COMPANY’S RACE WITH THE RIVALS
All this was done to ESTABLISH the New 737 MAX
SIMILAR to its Predecessor and hence to eliminate the
mandatory pilot training which would make it
inconvenient for Boeing’s customers and feared loss of
business.
1
2
3

11. 11
• Boeing
• Orders and deliveries
• Revenue and earnings
• Stock analysis
B737Max Issue – Impacts
$18.4 billion
loss for 2019
$1.8 billion
monthly loss in revenue to the
company
4,636
unfilled orders valued
at an estimated
$600 billion
Undelivered Boeing 737
MAX aircraft that were
grounded by aviation
agencies
Boeing's stock had fallen to $316
29%
drop since the day of first crash
https://en.wikipedia.org/wiki/Financial_impact_of_the_Boeing_737_MAX_groundings#Orders_and_deliveries
Monthly orders of the Boeing 737 Max
2018 2019
• Boeing suppliers
• Aviation insurance
• US economy
32
10
44
169
9 1 0 4 0 0 0 0 1
0
50
100
150
200
sep oct nov dec jan feb mar apr may jun jul aug sep
737 Max: Boeing’s Problem Child

12. 12
B737Max Issue – External Impacts
Victims’ Families
• 737 MAX pilots lost wages due to
the grounding.
• Southwest Airlines Pilots
Association said the MAX
grounding cost its pilots over
$100 million in lost income.
Boeing announced it would set aside $100 million
to help families of victims with education,
hardship and living expenses and for community
programs and economic development.
• 8,000 companies Affected.
• Spirit AeroSystems, fuselage supplier
lost $ 3 billion.
• General Electric, engine supplier lost
$1.4 billion.
• General Electric cut 13% of its
workforce.
Pilots Boeing Suppliers

13. The pilots will always have the ability to override
MCAS and manually control the airplane.
B737Max Issues Handled
Boeing enhanced MCAS
software to provide
additional layers of
protection if the Angle Of
Attack sensors provide
erroneous data.
Additional layers of protection
Flight control system will now compare inputs
If MCAS is activated in non-normal conditions, it will
only provide one input for each elevated AOA event.1
If the sensors disagree by
5.5 degrees, MCAS will not
activate. An indicator on
the flight deck display will
alert the pilots.
from both AOA sensors.
2
3
These updates are expected to reduce the crew's workload in non-normal flight situations and prevent erroneous data from causing MCAS
activation.

14. • Robust MCAS software updates with three additional layers of
protection
• 1100+ test and production flights with new software totaling 2100+
hours
• Additional updates to the flight control computer software
• Developing comprehensive proposed training with global
regulators
• Ongoing feedback from operator’s pilot around the globe
• Continued listening and feedback from customers and regulators
• Planning to do 20 global conferences for operators & financiers with
1100+ participants from 250+ organizations
• Actions to drive quality and stability across production syste
FUTURE COURSE OF ACTIONS
SOFTWARE
UPDATES
TRAINING
UPDATES
GLOBAL
OUTREACH