Boeing HQ
An exclusive report from Reuters indicates that Boeing is delaying the MAX output goal for its supply chain by 6 months, an indication that the company will be unable to reach its planned rates. With slow production, and suppliers producing components at a higher rate than they are being used, growing inventories and a potential de-stocking situation was emerging. Â
Boeing’s cash flow difficulties mandate a closer look at better matching component purchasing with the ability to build aircraft, and this should help their situation. Unfortunately, this doesn’t help the supply chain earn a return on their investments.
With respect to Starliner. the questions now are what next. It turns out that Starliner would have brought the astronauts home safely, and press reports indicated NASA and Boeing had a serious disagreement regarding that decision. Apparently, some angst bubbled over, as Boeing executives skipped the post-landing press conference with NASA in a major snub. The arrogance in the Boeing culture is something that still needs to change under the new CEO Kelly Ortberg.
With respect to the IAM-Boeing tentative agreement, some analysts are waiting to see the results of the ratification vote. The rank and file rejecting an agreement recommended by union leadership happened last year at Spirit Aerosystems, so until the vote it in, being hopeful is fine but celebrations can’t yet begin.
Finally, on the legal front, investors are moving ahead with legal actions over prior safety statements and risks.
- Boeing delays suppliers’ 737 MAX output goal by 6 month, sources say – Reuters
- Is there a future for Starliner after failed mission? – Time
- Would Starliner have safely brought its astronauts home after all? – Inverse
- Boeing execs snub NASA at new conference after landing – Futurism
- Boeing’s tentative union deal and Starliner return boost sentiment, but analyst remains neutral pending vote – Benzinga
- Boeing investors advance lawsuit over safety statements, risks – Bloomberg Law
