Boeing HQ
Today is a big day for Boeing, with a union vote that could end or extend the strike taking place, and Boeing’s new CEO Kelly Ortberg presiding over the company’s third quarter earnings call. One way or the other, it will be an interesting day.
In an era of increasing union militancy, Boeing’s union sees a tight vote. Our sources are now leaning slightly to the no side, and by no means will ratification be a slam dunk. The lack of an endorsement by union leadership places a different tenor on a “split the difference on wage increases” offer that came from Federal mediation efforts with both parties. A leadership endorsement would have increased the probability of successful ratification.
With no definite results in, Kelly Ortberg and Boeing will likely be asked to address what happens if the deal is accepted and when a return to work would occur, or what Boeing might need to do if the deal is rejected and the strike continues, likely until November at the earliest. With the possibility that earnings call statements in the morning could influence union voters, will Kelly Ortberg be transparent on the issue during the conference call, or utilize the vote as an excuse to duck commenting on a key issue facing the company. We know what the “old Boeing” would do, but continue to look for positive cultural change.
Commitment to the long-term is essential for leadership according to an industry expert examining the situation at Boeing. From a financial standpoint, Boeing’s plans to secure $25 billion in additional financing look to address that issue and provide some runway for cultural change at the company.
In another potential ‘quality escape,’ a Boeing built satellite has exploded in orbit, breaking into more than 20 pieces that could present a hazard to navigation in space. The increase in space junk and the large number of satellites in orbit are resulting in increased risk of a collision in orbit.
Some of those orbiting satellites are for Starlink, which Qatar Airways is introducing on the Boeing 777. Having full high speed internet access on board will provide passengers the connectivity and productivity they desire on-board, and may obsolete in-flight entertainment systems as we know them in favor of internet alternatives.
The other good news is that Boeing continues to dominate the freighter market, with a massive lead over Airbus in both purpose built and converted freighters. We expect that trend to continue, although Airbus introduction of the A350F will provide increased competition.
Links to today’s news follow:
- Union sees ‘tight’ vote on contract to end Boeing strike – France24
- From Boeing to beyond: understanding the recent surge in union militancy – Forbes
- Boeing CEO must ‘commit to the long term’: leadership expert – Yahoo
- Boeing-built satellite explodes in orbit, littering space with debris – Jalopnik
- Qatar Airways launches ‘world’s first’ Boeing 777 Starlink-equipped flight – Gulf Times
- Air Freight is Boeing’s best commercial market – AirInsight
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