Boeing HQ
The news about Boeing today is focused on the on-going IAM strike, a variety of legal issues, and how the company is stacking up competitively. The IAM strike at Boeing now appears that it will continue on for some time, given a lack of progress and a history of contentious labor relations at the company. Now entering the fourth week, the strike is costing Boeing about $1 Billion per month, and the company has pulled its ‘best and final’ offer, now considering their next steps. Like most things at Boeing today, the strike is complicated and unlikely to quickly be resolved.
The effects of the strike are being felt in the financial markets as well as the supply chain. Wall Street now expects Boeing to raise an additional $15 billion of capital after its third quarter earnings report on October 23rd. There were some who believed Boeing wanted to have the strike settled before that report, but it now appears highly unlikely. A new warning from rating agency Standard & Poors has led to speculation that Boeing will become the largest ever ‘fallen angel’ moving from investment grade to junk status.
Several legal actions are also in the news. Boeing is asking the court to accept the deferred prosecution agreement that it breached earlier this year. The families of the crash victims regard that deal as a ‘sweetheart arrangement’ that doesn’t punish the company appropriately for its actions.
The company has apparently settled out of court with the victims of a 2020 crash in Istanbul, with the settlement sealed behind a protective order. While we do know that Boeing compensated victims, we don’t know how much was paid.
In yet another case, this one brought by investors, Boeing provided additional information to the plaintiffs which enabled them to avoid a hearing on discovery issues scheduled for November. The intent of the discovery is likely to determine whether fraudulent actions could be proven that could lead to compensation for the loss of shareholder value.
Finally, we have a story today comparing Airbus and Boeing orders and delivery performance through the 3rd quarter of 2024.
Links to today’s key news items follow:
- Boeing machinists strike is getting messier – News Tribune
- Boeing considers ‘next steps’ after pulling contract offer for striking workers – Airline Geeks
- Boeing strike enters fourth week as talks fail, costing company $1 billion monthly – All Work
- Wells Fargo expects Boeing to sell up to $15 billion in new stock to cover for workers’ strike losses – Fortune
- Boeing would be biggest-ever US ‘fallen angel’ if cut to junk – Yahoo
- Boeing to compensate victims of 2020 Istanbul crash – Hurriyet Daily News
- Boeing To Ask Court To Accept Plea Deal in Deadly 737 Max Crashes Case: Outraged Victim Family Members Call It ‘Abomination’ – NY Sun
- Boeing turns over 737 MAX safety records to end investor probe – Bloomberg Law
- Airbus vs Boeing through 3Q 2024 – AirInsight
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