Boeing HQ
The elephant in the room is the Machinists strike at Boeing, overshadowing the other problems at Boeing. But everything is inter-related, as the strike will impact a number of programs and delays solutions. The key stories we’ve chosen today talk about how the strike occurred with a failure to read the room, Boeing workers not settling for less than their demands, and Boeing’s new CEO having his work cut out for him.
This is clearly a situation that Boeing can’t afford to have happen, and the company would prefer a quick solution. That’s unlikely to happen, as the union known that it has an advantage over the company, and that a strike is likely to cost Boeing over $110 million per day. A story on how long the strike could last is a good read.
The impacts of a strike are also critical. Already Ryanair has indicated that the strike is likely to further delay deliveries of the 737 MAX resulting in fewer planes by next summer. In the interim, Boeing is still evaluating the thrust-link problem on the 777-9, which is assembled in Everett and is one of the impacted programs.
The fallout from Starliner continues to have repercussions. Stories asking whether Boeing is “lost in space” don’t paint a promising picture, and commentary from the astronauts regarding their 8 day trip extending to 8 months aren’t helping the company’s reputation.
Unfortunately, none of these stories offer good news for Boeing. With one of the major analysts predicting that a strike that lasts more than one or two weeks will lead to a downgrade from the current lowest investment grade, higher interest costs could hinder the company’s recovery. With historic strikes averaging about 50 days, that would be both a major financial disaster for Boeing in addition to causing delivery issues for customers. Rather than a light at the end of the tunnel, the tunnel appears to be getting longer.
Links to todays key news items follow:
- A failure to ‘read the room’ – How Boeing and the machinists fell into the strike – Forbes
- Boeing workers won’t settle when it comes to a contract – Inc Magazine
- Boeing’s CEO has his work ‘cut out for him’: Arthur Rosenberg – Fox News
- How long Boeing Machinists’ strike could last and how it impacts WA – Seattle Times
- Ryanair may get fewer planes by next summer due to Boeing strike, says O’Leary – Irish Times
- Boeing still evaluating thrust-link problem’s affect on 777-9 timeline – Flight Global
- Is Boeing lost in space? – Slate
- Stuck-in-space astronauts reflect on being left behind and adjusting to life in orbit – ABC 7
