Boeing HQ
Today is a relatively quiet day in the news for Boeing. The company has begun its 10% staff cuts and the process of delivering “pink slips” to impacted employees began yesterday. The company plans to become more productive, with a plan to eliminate fat rather than muscle, and focus on activities that support its core objective of building commercial aircraft.
They weren’t the only organization in the industry furloughing employees. All 737 operator Southwest Airlines began to offer voluntary redundancies because it lacks capacity due to delays in receiving new aircraft from the company. Southwest expected to receive 85 aircraft this year but will end up taking delivery of fewer than 20, a significant shortfall. Once again, it appears that Boeing’s single largest customer is bearing the brunt of the problems at the company, rather than receiving favorable treatment. The delay of the MAX 7 has forced Southwest to alter its business model, resulting in lower utilization of larger MAX 8 models, and higher operating costs for the carrier.
WestJet and FLYTE will incorporate the FLYTE satellite communications system using the Iridium network onto its forthcoming 737 MAX 10 aircraft. Certification of the MAX 10 will come after the MAX 7, currently anticipated for late 2025 or early 2026.
The FAA is now reviewing Boeing certification efforts with a fine toothed comb, after having been embarrassed by the initial MAX certification. Boeing’s admitted fraud with respect to the MCAS system, which the company effectively hid from the FAA, was flawed, with a single point of failure resulting in two crashes and 346 fatalities. Certification remains on a slow track to completion for both remaining MAX models and the 777X, given the lack of trust in Boeing from the FAA.
Finally, a conversation with Bill Blain from the UK with my colleague Addison Schonland explores the idea that Elon Musk should buy Boeing. Musk does have a track record for innovation and his success at Tesla, SpaceX, and Starlink, plus his wealth, would provide the company with the right experience to bring about new commercial aircraft and defense technology. It is a good listen.
Links to today’s key news follow:
- Boeing lays off 10% workforce, 17,000 employees start receiving pink slips – News18
- Southwest offers voluntary redundancies due to Boeing delays – ch-aviation
- FLYHT strengthens partnership with WestJet for AFIRS 228 on Boeing 737 MAX 10 fleet – ASDNews
- Should Elon Musk buy Boeing? – AirInsight
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