Boeing HQ
The key story revolving around Boeing is the progress of the 10% global staff cuts. So fare, there have been 2,199 layoffs in Washington, 50 in Oregon, and 220 in South Carolina as the cuts that are projected to total 17,000 have begun. Clearly, this will be an on-going process, as the total reported so far is around 2,500 jobs. Those who received notices will be laid off in late December. We expect to see a further round of cuts that will likely take effect in January, 2025.
Boeing has asked the FAA to extend an exemption from Flight Data Recorder and Cockpit Voice Recorder regulations for factory test flights, citing international competitiveness as the reason for the exemption. Some foreign countries do not yet have the same requirements as the FAA for FDR and CVR capabilities and recording time, and a handful of airlines prefer not to install the latest safety equipment on their flights. When the exemption was first granted, international standards were lower than FAA standards, but there is now near parity worldwide, as reflected during the grounding of the MAX.
With EASA and other international regulatory agencies matching or surpassing FAA and IATA standards, the rules are now fairly uniform worldwide, leading us to wonder how essential this exemption really is, and why Boeing, which is touting its new safety culture, would provide lesser options for safety equipment to international customers. Safety needs to be standard equipment – period.
In M&A news, Spirit AeroSystems has sold its composites unit, Fiber Materials, Inc. to Tex-Tech for $165 million. That transaction will help the company with short-term cash while it shakes off the negative impact of the Boeing strike on its tenuous financial position before the Boeing merger. This comes a week after a $350M advance payment from Boeing and a $107M line of credit from Airbus to be used for advance payments. The company is too large a supplier to fail as it makes key components for a number of aircraft, and Boeing’s planned $4.7 billion acquisition remains on track for early 2025.
Links to key news follow:
- Boeing starts sending its 2,199 layoff notices in Washington, the state where it was founded – Fortune
- Boeing to cut 220 jobs in South Carolina, impacting North Charleston most significantly- ABC4
- Boeing to lay off 50 workers in Oregon, part of 10% global cut – The Oregonian
- Boeing asks FAA to extend exemption for certain FDR & CVR regulations for test flights – Simple Flying
- Spirit AeroSystems sells Fiber Materials, Inc. for $165M – AirInsight
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