Having become a master of financial engineering instead of aircraft engineering. UPDATED with the announcement on Jan 21 that “ungrounding” of the 737 MAX will be further delayed.
And the year has just started.
On paper, this looked like a no-brainer.
The Chinese conglomerate had gone on a debt-fueled global acquisition binge, including in the US, and owned 18 airlines before it all came unglued.
And these are still the good times, with growing passenger traffic.
Rescue deal fell through at the last moment. China’s Fosun and other shareholders are toast. Creditors get to fight over the debris.
Shareholders are already toast. Would China’s Fosun conglomerate follow the time-honored principle of throwing good money after bad?
The curse of pushing volume by selling tickets below cost became an even bigger curse with the peso massacre.
And 200 miracle orders — well, just a letter of intent — for the Boeing 737 MAX at the Paris Air Show.
Rolls-Royce’s debacle for the Boeing 787 Dreamliner. And China is learning it the hard way.