Within a five-month time span two Boeing 737 MAX 8 airliners crashed killing 346 people aboard Lion Air Flight 610 on October 29, 2018, and the Ethiopian Airlines Flight 302 on March 10, 2019. Following the 2^nd crash, most airlines and world government regulators grounded the aircraft. The U.S. FAA first defended the airworthiness of the Boeing 737 MAX 8, but two days later reversed its decision.

As a financial analyst for the Boeing Corporation, please research the financial impact this incident will have on our profitability and stock price.

In your financial notes, please address the following questions:

• Who are the stakeholders, and what are the ethical and financial issues arising in this situation?
• What assumptions or principles of accounting are relevant to the Boeing 737 MAX 8 case?
• Do you think it is an ethical or financially sound strategy to try to time or delay the release of facts in order to diminish its effect on Boeing’s stock price?
• What was Boeing's stock price on March 11, 2019, and what is it today?
• What would you have done differently than Boeing's CEO Dennis Muilenburg's stance in defense of the airworthiness of the aircraft?
• Boeing maintains that the aircraft is safe and pilot error was the cause of the fatal crashes. However, does Boeing have the obligation to be transparent and reveal issues with the MAX 8 to the public? What implication does making these issues public have for investors who follow Boeing's stock price?
• Once the Boeing 373 MAX 8 issues are resolved, what will it have on the overall financial impact on the company’s profits, future sales of the MAX 8, stock price, and corporate reputation?

Answer rating: 100% (QA)

1 The stakeholders are i Employees ii Stockholders iii Vendors iv Customers of Boeing v Banks The financial issues arising out of the situation are Pa... View the full answer