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Possible? Technically. Will it? Probably never, it's too much of a tool used by the US Government to ever go bankrupt.

skissane 7y ago
> Will it? Probably never, it's too much of a tool used by the US Government to ever go bankrupt. Of course, the US government would never allow Boeing to go out of business completely, as in a chapter 7 bankruptcy. But a chapter 11 bankruptcy, in which Boeing the business survives but its current stockholders lose everything? Not inconceivable it might happen some day, and I can't see why the US government would feel it necessary to stop that. Customers only care about the firm's products and services still being available to purchase at a reasonable price, if the stockholders lose everything that's not their problem.
- evanriley 7y ago
  Hmm, I actually feel like you're right here. I could see them letting it go through Chapter 11. Out of curiosity, do you think they wouldn't let it even get that far to make sure they stay competitive vs Airbus?
  - skissane 7y ago
    In Boeing's current state, I don't think chapter 11 would achieve much. Their total debts aren't that large compared to their overall revenue and assets. Boeing's real current problems are poor management leading to poor corporate culture, and chapter 11 won't necessarily do anything to fix that. (I'm not sure how good Airbus' culture is either, but evidence suggests it may be better than Boeing's.) Even though 737 MAX is a big expensive mess, Boeing makes so much money on the rest of its businesses (its other commercial aircraft models, defense contracts, space, etc) I'm sure they can survive those losses. So I don't think Boeing will be filing for chapter 11 any time soon. But in 5, 10, 15 years from now? Anything could happen. Maybe they'll turn the corner from this episode, and their business will have a very bright future. Maybe they get stuck in the doldrums, and then chapter 11 might slowly become more plausible as an ultimate outcome.

> Will it? Probably never, it's too much of a tool used by the US Government to ever go bankrupt. Of course, the US government would never allow Boeing to go out of business completely, as in a chapter 7 bankruptcy. But a chapter 11 bankruptcy, in which Boeing the business survives but its current stockholders lose everything? Not inconceivable it might happen some day, and I can't see why the US government would feel it necessary to stop that. Customers only care about the firm's products and services still being available to purchase at a reasonable price, if the stockholders lose everything that's not their problem.

evanriley 7y ago
Hmm, I actually feel like you're right here. I could see them letting it go through Chapter 11. Out of curiosity, do you think they wouldn't let it even get that far to make sure they stay competitive vs Airbus?
- skissane 7y ago
  In Boeing's current state, I don't think chapter 11 would achieve much. Their total debts aren't that large compared to their overall revenue and assets. Boeing's real current problems are poor management leading to poor corporate culture, and chapter 11 won't necessarily do anything to fix that. (I'm not sure how good Airbus' culture is either, but evidence suggests it may be better than Boeing's.) Even though 737 MAX is a big expensive mess, Boeing makes so much money on the rest of its businesses (its other commercial aircraft models, defense contracts, space, etc) I'm sure they can survive those losses. So I don't think Boeing will be filing for chapter 11 any time soon. But in 5, 10, 15 years from now? Anything could happen. Maybe they'll turn the corner from this episode, and their business will have a very bright future. Maybe they get stuck in the doldrums, and then chapter 11 might slowly become more plausible as an ultimate outcome.