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The demise of Boeing is a story about the failings of capitalism

25 January 2024

From the priority being to build excellent and safe aeroplanes, Boeing’s primary focus became raising the dividend and buying back shares. Between 2016 and 2019 Boeing spent $40bn on share buybacks – money that could otherwise have been invested into capex. The comparison with Airbus is insightful, which continued to build the best and safest planes possible. With huge debt on its balance sheet, Boeing’s future is uncertain. Can it be turned around?  And will more SA companies suffer the same fate, of juicing short-term share performance, instead of investing for long-term growth?

 

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