7 NYT Response Article

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24March 2019

Article summary from New York Times

The competition between Boeing and Airbus is very intense. The Boeing Company had to postpone the development of a new plan and had to decide to upgrade one of its existent planes which were promised to be completed in 6 years. All this was started when the American airways signaled that it could go to Airbus to purchase new fuel efficient planes. The down side of the urgency shown by the company was that the plane prepared has gone through two deadly accidents in the five months. Thus it has brought the reputation of the company at stake. This all happened due to excessive competitive pressures on the company.

The company would suffer badly due to these accidents as the Indonesian airline named Garuda Indonesia has given a signal to cancel the deal of 49 jets. The deal was originally for 50 planes out of which only one has been delivered. The passengers of the airlines have shown concerns over the safety issues related to the said planes. The passengers have lost the trust with the said planes. The said incidents have affected the stock prices of the Boeing Company adversely.

A detailed view into these accidents shows that the downturn started in October when 189 people died in a crash of plane that just took off from Jakarta airport. Then the second incident was reported in March when 157 people were dead in a crash involving same kind of plane from Ethiopian airlines. There are certain similarities found in both these incidents. The max series given by Boeing is automated and currently there are two variants of these in operation, 8 & 9. The planes in the series have been starting to get grounded. The Chinese airlines have suspended using them. The overall airlines operations are not going to be affected by the grounding of these planes since they were relatively a new addition. The reasons of the accidents may be the lack of knowledge on the part of the pilots about the automated systems in the planes. The start of usage of the plane can be marked to 2017. The main focus of these planes is the fuel efficiency over a longer route. New engines were made and a system was installed to cover the aerodynamic effects on the planes. The company did not train any of the pilots on the system which resulted in these severe crashes. This is especially true in the case of the pilot on the Ethiopian airlines plane. The reports say that the planes were not properly certified before thet were allowed to fly.

The two giants in the technology arena namely apple and Netflix have started a cold war in the technology market. Both these companies have affected the time that people spend and how they spend it. The apple company is going to unveil an application that will be directly competing with the Netflix. The tech giant entering the entertainment area will mean something to the whole scenario.

The Americans have not liked the inclusion of Geithner at a primary position in the USA. The reason behind this is that the person had forgotten to pay some of his taxes. The person said that he had known about the taxes that he had to pay. According to the official sources, the mistake can be made easily by any worker of the international organization as IMF.

When an old lady wanted to sell her old family house, she was faced with difficulties as the market was sluggish and slow. However the lady was offered free marketing services for the sale of old house. She thus signed a purchase contract for the new house. The house was sold for $ 450000 two days after she left it. The Ericsson chain helped the people who wanted to sell and purchase at the same time. The company started in 2004, when the sales of houses was down and the company started giving services on finding the best deal and to make the house look as the new resident wants it to. The company works at the Cedar crust retirement area and it has completed around 64 projects in the area. In various states the sale of the houses is at a decline. The average house is spending more time on the sales ground as it was spending a few months back. Some marketing efforts have been directed to those middle aged people who have some time to turn old. They will try and sell their houses and when they will be moving to the age restricted housing, the purchase payments will start. Some places that are very expensive are being opened to live free for one year.

Diversification has been often considered as an option to take a company out of the current problems. This is especially true when someone invests in various types of investing options. The rates of return have declined on all the assets except for the treasury bonds. Some other classes of assets have fallen even more over a period of time. In a shorter period of time the diversification will at least ensure that one or two of the securities that the investors possess will perform well. This way will help only if the investors have put some of their funds in the treasury securities and cash. Using a single index for putting all your investments is a dangerous act.