Boeing Is Burning Through Its Cash. That’s Good.
The planemaker is finally willing to spend what it takes to fix its supply chain and restore confidence in its aircraft.
Boeing chewed through nearly $4 billion of cash in the first quarter.
Photographer: Kevin Dietsch/Getty Images
How can a blown-out door plug on an aircraft in midair be a blessing in disguise? When the wake-up call from that near-miss accident is so loud that Boeing Co. is willing to burn the cash it needs to finally get its supply chain in order.
Boeing chewed through nearly $4 billion of cash in the first quarter and is burning more cash (although less than $4 billion) this current quarter in part to make sure that the fuselages it receives from Spirit AeroSystems Holding Inc. arrive at Boeing’s 737 factory without any glitches or missing pieces. The company will also spend to build an inventory of parts and to make sure suppliers can deliver components at the proper tempo before cranking up production of the 737 Max to the 38 a month that’s allowed now by the Federal Aviation Administration. None of these drastic, cash-draining measures would have been taken without that terrifying hole blown out during a Jan. 5 Alaska Airlines flight.