Boeing HQ
Today’s key news centers about labor relations and the IAM strike, with an interesting retrospective, and why one Boeing factory has been safe from layoffs. In other news, Air One in Belgium is expanding its cargo operations under new ownership, the LATAM aircraft that had a tailstrike will remain on the ground due to parts shortages, while supply chain issues are also impacting critical year-end OEM deliveries. Finally, on the humorous side, unless you were on the aircraft, a 787-9 carrying 100 pigs in the cargo hold had to divert to Bermuda during a transatlantic flight from Amsterdam to Mexico City due to odor issues.
In a pro-labor article linked below, the story of the Boeing strike and its machinations are well documented and explain clearly why the IAM rejected new contracts three times before ratifying the final agreement. The contentious relationship between labor and management at Boeing, particularly with the last 10 year deal that stagnated wages, played heavily into the strike process.
Meanwhile, the only factory safe from layoffs is the non-union Columbia facility in South Carolina. Boeing will be investing $1 billion in facilities and will create 500 additional jobs in the non-union plant. Interestingly, the non-union workers in South Carolina received the same $12,000 retention bonus that IAM members received, along with a 9% wage increase. It appears that a rising tide raises all boats, and the IAM has also benefited the non-union employees at the company.
Air (One) Belgium, a Belgian-based cargo carrier, is under new ownership and is adding to is fleet. The carrier was recently acquired by Dutch businessman Peter Scholten of Peso Aviation and Indian businessman Guneet Mirchandani of Air One International Holdings. The two new aircraft will be 747-400F models, joining two 747-8F and two Airbus A330-200F aircraft in their fleet.
A LATAM B-777 that experienced a tail strike several months ago in Italy is still grounded, as supply chain issues have resulted in a dearth of spare parts. It appears the grounding will take 8 months rather than a normal 2 to 3 for the repairs.
Supply-chain issues are also continuing for OEMs trying to meet aggressive goals for December deliveries. Early reports indicate that some targets may not be met this quarter, as component shortfalls remain for both engine and airframe OEMs. While many had hoped the supply chain issues would have cleared up by year-end, the tumultuous events of the year have precluded suppliers from investing and hiring, resulting in shortfalls. Hopefully the second half of 2025 will bring in better supply reliability.
Finally, a KLM 787-9 from Amsterdam to Mexico City had 100 pigs in the cargo hold. The stench from the pigs got so bad during the flight that the crew diverted the airplane to Bermuda. Passengers were put up in local hotels and were 26 hours delayed in reaching their destination. I wonder what the refund percentage was that reached the passengers “piggy banks.”
Links to key news follow:
- Boeing Bows Down – The Progressive
- One Boeing factory has been safe from layoffs and is about to start hiring – Quartz
- Air (One) Belgium expands fleet with new ownership – Aviation 24
- LATAM Boeing 777 tailstrike repairs: aircraft grounded until March 2025 – Aviacion Line
- December delivery issues highlight supply chain issues – AirInsight
- Piggy smell forces KLM Boeing 787 to divert – Aviation 24
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