Boeing has been flying in severe turbulence since over a year now. The effects of the COVID-19 crisis are now adding to the battering winds, and it is not yet clear where the world’s now
second largest aircraft manufacturer will land. What is the outlook and why are Dreamlifters lining up?

Though it would be preferable altogether to not have the cause for this event in the first place, the sight of three Boeing Dreamlifters lining up on a special mission is certainly impressive and
unique. Dreamlifters are converted 747-400 Large Cargo Freighters capable of holding up to three times the volume of an ordinary B747-400F, namely 1840 m³, and were originally designed back in
2003 to transport B787 parts deemed too big to fit even the AN225. Converted from passenger B747-700s, Boeing now counts 4 such aircraft in its fleet.

All good things come in threes
Boeing has been deploying its corporate fleet since 18APR20, to help transport PPE as part of the COVID-19 recovery efforts. This particular airlift-trio took place on 11MAY20 and brought over
150,000 protective eye goggles and face shields from China to South Carolina, USA.
The transport was arranged in partnership with the Medical University of South Carolina (MUSC), who were the first in the U.S. to set up a combined virtual urgent care platform and drive-through
specimen collection site, allowing for mobile COVID-19 also in remote and underserved communities. Given the cause, Boeing donated the cost of the mission transport.
The Dreamlifter flights were operated by Atlas Air on behalf of Boeing and carried the medical supplies in the lower decks of the three aircraft, whilst the main decks contained 787 parts. More
such flights are to come, since the MUSC is awaiting more than 400,000 units of PPE in the near future.
The Boeing press release contains a number of similar citations of praise from grateful politicians, along with the Boeing’s CEO Dave Calhoun and the MUSC President, David J. Cole. North
Charleston’s Mayor, Keith Summey sums it up succinctly: “Through the generosity and logistical might of Boeing, our local health care providers are receiving much needed equipment to keep
them safe while they care for the most vulnerable in our community. We should all be inspired by the efforts of Boeing and their teammates, because together, all challenges can be met.”

Taking stock?
The world’s second largest aircraft manufacturer (it was overtaken by Airbus at the start of this year) is facing its largest crisis. Corona forced it to stop production for a time in MAR20, and
thus far it has only produced 56 aircraft in 2020 – 67% less than the year before. Its CEO Dave Calhoun and Board Chairman Larry Kellner announced in MAR20, that they would forgo pay for the rest
of the year, and moved to raise US$25 billion in bond sales to boost liquidity, but also that its workforce of 160,000 would be trimmed by around 10%. In a recent NBC interview, Calhoun took
stock of the situation: “Apocalyptic does actually accurately describe the moment [however] I don’t think it describes the recovery, and I don’t think it describes medium- or long-term for
the airline industry or aviation in general.”
Boeing stock has fallen 70% this year – even hitting an all-time 80% low in MAR20 compared to previous year, so any prospective investors might be wondering if now is the time to buy Boeing
shares. While Calhoun expects a more positive medium-term (next 3 years) production outlook, saying in the NBC interview: “We really do believe there’s stability in there,” the advice
from Gillian Rich on Investors.com is not so optimistic: “Boeing stock is also not in any kind of buy zone, and is not forming a discernible pattern. Bottom line: Boeing stock is not a
buy.”