Boeing HQ
Today’s Boeing news is the IAM strike entering the third week, with talks broken off and no new talks scheduled. The outlook for a quick solution to the dispute doesn’t look good today, which is not favorable to the supply chain, who are worrying about their revenues and employees during the strike since Boeing has cancelled new purchase orders. Â
While resolution of the strike sooner rather than later would benefit the industry, it has become apparent that the historic animosity between the parties was further stoked by the public release of Boeing’s last offer, which upset union leadership. It now appears that a longer work stoppage is likely.
In better news, rumors have Vueling airlines switching from an Airbus to a Boeing 737 MAX fleet, with the existing Airbus A320neos and A321neos going to Iberia or other IAM airlines. An order for 100 MAX would be helpful to further firm Boeing’s backlog as it struggles to ramp-up production rates. Our preliminary estimates for September show Boeing at 279 deliveries for the year, versus 524 for Airbus for the first three quarters. Airbus has a strong lead, which will only grow with the ongoing Boeing strike.
The families of victims in the 737 MAX crashes and LOT Polish Airlines have asked for a trial, objecting to the Department of Justice settlement that resulted from the fatal crashes. These parties believe the penalties were too low, and that Boeing should pay higher fines to victims and MAX-impacted airlines. While we view the judge rejecting the settlement and putting Boeing on trial to be unlikely, the fact that the judge will hear motions is in itself a change from prior positions. Â
A commentary indicates how Boeing could bounce back, a positive for the beleaguered company, which desperately needs cultural change. Â Finally, the SpaceX Crew9 capsule arrived at the ISS, and will serve as the ride home for the two stranded Starliner astronauts during the next crew rotation in February.
Links to today’s key news items follow:
- Boeing, striking union, break off talks with no deal – Fox 13 Seattle
- Elvis has left the building – Machinists vs Boeing round 2 – Forbes
- Boeing suppliers fear long-term job hit from strike – Reuters
- Provisional new deliveries for September – AirInsight
- Vueling to switch to MAX? – Scramble
- Federal judge in Texas will hear arguments over Boeing’s pleas deal in 737 MAX case – Manufacturing
- Boeing can bounce back. Here’s how – Quartz
- SpaceX rescue capsule docks at ISS to retrieve stranded astronauts – NTD
