If enough supply exists then prices drop. If enough demand exists then prices rise and a corporation can flourish under these models. What if supply and demand are no longer the theoretical engines which drive the market place and the Golden parachute replaces the laws of Supply and Demand? If that is true, then a MAX 737 happens. The balance sheet is no longer about the product but the corporation becomes just good enough, as the standard supporting retirement chain of growth for its execs.
Decisions are made on both the 737 and 787 programs and possibly the up and coming 777X program.
The Golden retirement parachute holds the corporate high ground. If an airplane crashes while violating engineering laws of redundancy, then the money saved is plowed into someone's portfolio later on with a "who cares yawn". The 737 Max crashes are a model for corporate success thus violating the laws of supply and demand, but giving into a higher law of "just good enough", so a gold leaf parachute can be made for someone owning a mansion on Puget Sound.
Here comes the rub, future execs can expect dismal performances on its portfolios as Boeing comes back down to earth. The Golden Parachute will melt back to the old laws of supply and demand. Boeing execs just don't care at this time while "quality management" is the sacrifice for this sentiment. Debris found on completed aircraft; having single sensor technology, or using programming falling short of just good enough are the results. Boeing is taking a hard landing at this time and factory workers and its passengers are the victims emanating out of this new corporate culture super ceding supply and demand.
King 5 photo Boeing demand is frozen
737's parked as Boeing demand struggles to await its fixes and approvals.
Financial times photo
Airbus cannot supply fast enough for its demand.
The laws of supply and demand are now split between two giant aircraft makers. A supply sided Boeing and a demand strapped Airbus. Boeing executives are floating down from making just good enough mistakes with its key product in order to squeeze more post position income for themselves.
They just don't care and they also think it's not my job to fix what the corporate culture gave them. If you think Airbus has escaped this quagmire then an observer is mistaken. Airbus has had a string of fortunate luck with its product and is not facing the same type of press Boeing experiences today emerging out of everything Boeing. Regulatory agencies are seeking higher ground as they have failed to do their job in the first place. Agencies have let the fox guard the chicken coop and now Boeing is getting a thorough beating for its corporate culture troubles. It wasn't good enough! Please cancel your dividends on the way out the Boeing big doors.
They just don't care and they also think it's not my job to fix what the corporate culture gave them. If you think Airbus has escaped this quagmire then an observer is mistaken. Airbus has had a string of fortunate luck with its product and is not facing the same type of press Boeing experiences today emerging out of everything Boeing. Regulatory agencies are seeking higher ground as they have failed to do their job in the first place. Agencies have let the fox guard the chicken coop and now Boeing is getting a thorough beating for its corporate culture troubles. It wasn't good enough! Please cancel your dividends on the way out the Boeing big doors.
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