Hey this is tom and boeing just disclosed that they have more issues with the 787 dreamliner. That's not in itself a huge issue, because we kind of grown used to it from boeing, but the thing is the way this crisis is being handled. Reminds me, unfortunately, a lot about the 737 max fiasco, and that is alarming. Mike take a look at shares of boeing, it is under pressure, as the company is announcing that it has a new issue with the 787 dreamliner, and when you hear what are those issues they're having with the 787 dreamlander you're gon na blow a gasket? It's not faulty dvd screens, it's not clogged up toilets.

It's massive massive issues that has to do with the structural integrity of the plane. The way the fuselage is basically being held together now this is major news. The problem is that it seems that boeing and the faa are now saying well we're going to stop production and delivery of new planes and we'll figure this thing out, but existing planes can keep on flying no problem, you're, okie dokie. Everything is gucci now for me.

That sounds like a lot of nonsense, but i'm going to talk more about it in a second first. We have to go through the history lessons here, because boeing is showing systemic failures with dissimilar issues 617 days. That's how long the 737 max jets have been grounded 737 max actually was a plane that was developed by boeing for over a decade. It started developing in 2011 as a competitor to the buses, so the airbus a321 neo a320.

Essentially, it's a bus. It's supposed to be in the air all day, long flying multiple flights cheap to operate cheap to maintain its bus. Now. The whole thing is that airbus has been pretty much kicking boeing's butt in this category and this plane was supposed to be the solution, because finally, boeing actually got the newer engines that were being used for the airbus a320.

It's a much cheaper engine. The only issue is that it's a much bigger, physically bigger engine and the 737s could not handle it, because the way these 737s were historically designed, they were much older planes than the actual a320s and they were much lower to the ground for a purpose. Essentially, they didn't have sleeves back. Then they had these staircases, which were basically deployed by trucks, so the plane needed to be lowered to the ground.

It was just a design decision that actually was relevant back in the day when the 737s actually went into the service. Now, as the 737 went through, these various integrations and improvements and upgrades, it still remained the key design features and putting a huge ass engine on this plane was not possible because the engine will literally hit the ground. Now boeing was faced with an impossible decision. They either don't use these newer engines and they basically keep losing the battle to airbus, or they find a way to integrate this big ass engines into the old 737 and they decided on the latter.

There was no question of if but how and because it's a very thin margin category they basically had to make that this plane is going to be a plug and play plane. Essentially, the 737 pilots can just pretty much sit in this new plane and just fly. It without any additional training, because the plane was marketed as a complete competitor to the a320 and there was no additional training for a320. So essentially, it's either a cost to the airlines or to the manufacturer to train more pilots.

In any case, they couldn't afford it, and so the solution they found was a software fix called the mcas, a system that was wholly designed to just change the way the spherical plane works just to keep it level with the engines being much higher, but the cool Thing about it, is they never let the pilots or the airlines know about it, and this is quite alarming, because this system essentially could take over override the pilots and take over the plane, which it did twice once and then the second time killing 350 people within Six months now, the first crash should have been enough, but the second crash is really where they pretty much had to actually go disclose. What the hell just happened - and i find it kind of weird that nobody went to prison for this whole thing nobody's in jail, nobody's in prison and now life just moves on, but again we're in business here. So let's talk business now i want to be very clear here: we're talking about a company that literally told nothing to the pilots, about a system that can potentially override them and crash the plane which it did is now saying that the 787 has issues that basically Halt production and deliveries, but the existing planes can keep on flying without a problem. I don't find it very reassuring, given the history of this company, excuse me, and now, let's talk about what's going on with the 787 dreamliner, or rather a nightmare aligner.

At this point, it's a plane, that's been plagued with issues and here's another issue for you. They're actually now concerned about fuselage issues, and i want to be really clear here: it's not that they think that the plane is going to disintegrate in mid-air, but these are real safety concerns. I mean anything that has to do with the fuselage of the plane. Is a big deal even if the risk seems remote now, according to boeing themselves, i'm not making this up.

The 787 dreamliner has potentially issues with the fuselage not being joined together properly. Are you freaking kidding me? This is literally basically like saying well, this plane can fall apart, hey deal with it, i mean what the hell is going on here, but wait. It gets better because boeing, let us know that everything is a-ok. They working with the faa to solve this and fix this, and, in the meantime, you can keep on flying on the existing 787s without a problem, even though they're not going to be delivering any new planes in the near future.

What is going on is this: the upside down world from stranger things in which logic system does. This thing sounds right to you. Imagine this and airline comes out and says: well we have concerns about the fuselage structural integrity, but you can come flying, don't worry about it. What the hell are they talking about? Where is the faa? However, you have to give them credit for being consistent.

This is the same company that thought it was okay, not to tell pilots and airlines about a system that can override the steering and basically crash the plane. If you follow that logic, it's extremely consistent with what they're saying now a plane can literally fall apart in mid-air, and it's still okay to fly it because don't worry about it! It's going to be probably okay, what the hell! Now i don't know what about you, but i'm gon na be checking every flight i take from now on to check which plane exactly i'm getting on and you do the same or don't it's your decision, but i'm definitely gon na follow up on that issue. From now on - and you know what i feel bad for people who are employed by this company and put food on their table, because this company pays them salary. However, that cannot be an excuse to sweep these issues under the rug because they were about to.

They were having an amazing month, 45 deliveries. This month i mean they're about to actually turn the profit. For the first time. In two years, eight quarters 20 billion of accumulated loss now they're about to turn the profit.

The 737 max is on orders. Again, everything was looking great and now this now this is not a coincidence. This isn't murphy's law. This is just a manifestation of the bigger disease this company is facing, and i want to talk more about it and for that we have to go way back 25 years back the downfall of boeing.

In my opinion, and by the way, everything i say here is just my opinion might be. Inaccurate might be wrong, maybe just ramblings of a madman just do your own research and decide for yourself, but, in my opinion, the downfall of boeing, the whole 737 max thing. The 787 dreamliner this whole story started 25 years ago and we're just in the final act of our longer story. Now, what happened 25 years ago was peculiar and i'm being very gentle with this, because we had an amazing engineering focus company like boeing, with their standards of quality, basically merging with a company like mcdonald douglas now, mcdonnell douglas was known for probably the most unreliable plane In history, in my opinion, which is the dc-10 insanely unreliable and in fact the plane that killed the concorde, if you look back at history, it had a piece: a metal piece fall off the plane just before it took off, and then that piece actually punctured the Conquered wheels basically crashing the concrete in paris, so this plane, the dc-10, the mcdonald douglas flagship plane literally had bits and pieces falling off.

It now had poor culture. They were basically all about cutting costs. Economics share price, basically everything that boeing was not and when you have this merger, you kind of expect that the good company will teach the poor company the good culture, but instead the mcdonald douglas people took over and brought their shitty culture into boeing. Unfortunately, and the stuff they did are mind-blowing, let me tell you a little bit about it in the 25 years that followed that merger.

This company was basically now at mcdonnell, douglas 2.0 they're chasing profits, they're cutting costs, the execution now sucks. Unfortunately, in the past 25 years the fame engineering legacy of boeing has been tarnished for those 25 years. We've seen a lot of managerial decisions that led to what's going on right now, 20 years ago, this company decided brilliantly to take its management headquarters and rip it from the beating heart that is boring in seattle and put it in chicago. They could have put it in the ukraine for that purpose.

What the hell now this was done intentionally to separate between the management and the engineers in order not to get emotional in order to get business accounting and they succeeded, the company is more efficient than ever. The costs are cut as much as they've ever been. Everything looks great in the financials amazing. However, look at the results, the 737 max and now what's going on with the 787..

This is not a coincidence. This is a direct result of the engineering culture being abandoned. Systematically for over two decades in favor of this accounting numbers pushing now, listen, i'm a numbers guy, but there's one thing: i know if you don't have good engineering, the numbers are going to be temporary. You cannot have sustainable good numbers without a dedication to quality engineering, especially in the alien industry.

Come on the whole idea of where the 787 dreamliner came from. It's not a dreamliner for the passengers, it's a dreamline for the airlines. The only thing this plane does better than the 747 is it's cheaper. It has two less engines, it's smaller.

It can fit into smaller airports, and that is it so basically they're saying well, you can fly with two less engines over the atlantic. Ah, it's gon na be okay, pretty much! That's the whole thing here. It's just about cost. Saving this plane, in my opinion, is no better than the 747 in any capacity other than it's cheaper, to run now that in itself, shouldn't be a problem in the whole industry is basically around cost saving.

That's fine, however. However, the whole idea behind this plane goes against the whole culture of boeing. Boeing didn't make this plane like they made their other planes. This plane has been outsourced out.

The wazoo multiple parts of this plane is not even manufactured by boeing. This plane has been outsourced and basically contracted to manufacturers around the world to make it as cheap as possible as efficient as possible, and the only thing boeing is doing is basically assembling this plane, while it's being manufactured all around the world, which is something that, if You said to a boring engineer: about 25 years ago, you're gon na get laughed out of the building, but now that's the reality, but the numbers follow. You can't say that and say: well tom, that's the reality! That's how you make money. Look at the numbers, while boeing and airbus are pretty much neck and neck in the long haul business.

The short haul business where the real money is is where airbus is literally killing. Boeing a321 neo is selling five to one versus the 737. Max they've already lost that battle beyond the max beyond the 787 origins, the financials they don't lie. Boeing is getting shellacked by airbus and the a321 versus the 737 max and that's a direct result of basically saying well.

We care about economics, not about an engineer and that's coming from a guy who's, all about numbers, but you can't be 100 numbers and just put in the toilet, your entire origins, your entire backstory, your entire engineering heritage. That was a cataclysmic mistake by boeing's management and now 25 years later, they're paying the price, because it takes a lot of time for this to float up and now it is unfortunately, and that is why i'm staying away from the stock, because i see no future Until they rectify their culture, i think the way they're doing business the way they're building planes. They can have a good year here and there you might make good money day trading or swing trading, but it's a long term. 10 year investment.

I don't like where this company is headed, but again this is just my opinion. I've been wrong before i might be around again own research, as always a huge shout out to the channel members and the patrons i'm sorry for getting a little bit emotional on this video. I just love aviation so much those of you who are ogs on the channel. You know i love planes and this has been a pet peeve of mine and now that i see that it's actually materializing to bad business for boeing, i feel bad for the engineers.

I feel bad for people who dedicated their life for boeing now they have to see that happen and i honestly hope they'll find a way to do it. It's been a pleasure spending these few minutes with you. I hope you're having an amazing day i'll, see you tomorrow.