Today’s news is focused on the implications of the IAM rejection of the latest Boeing offer, extending the strike that is now in its sixth week. The strike is impacting the supply chain and industry-wide disruptions in the industry. Continuing the strike means that implementing Boeing’s turnaround plan will be delayed, and that airlines, already upset with late deliveries, will need to modify their schedules since they cannot get aircraft on time.
With new CEO Kelly Ortberg outlining his strategy during the Q3 earnings call, analysts are now beginning to express their reaction, with some questioning if those reforms can get Boeing back on an even keel. The tenor of the question indicates doubts entering the thought process despite a massive half-trillion dollar backlog for the company.
With Ortberg clearly looking at a return to fundamentals, some are speculating that the company could divest the space business, particularly after the embarrassing Starliner performance. With news this week of a Boeing-built satellite exploding and adding more than 80 pieces of space debris, there hasn’t been good news coming from Boeing space recently. With the ULA joint venture with Lockheed Martin reported to be for sale, is a divestiture in the near future?
American Airlines has joined Emirates and Ryanair in calling for Boeing to return to delivering airplanes on time. They are frustrated, as are many carriers around the world with delayed aircraft deliveries. With the 777X recently pushed back to 2026 and production currently stopped on the 737 MAX, 767, and 777, customers are increasingly concerned about maintaining routes and expensive maintenance to keep older aircraft flying. The longer Boeing’s problems continue, the more difficult it becomes for airlines to meet their aircraft needs.
Finally, a Boeing 787-9 has experienced structural damage and a fuselage crack after a hard landing. The key question is how significant the repair process might be, and whether a crack in the composite structure will require patching or replacing a large fuselage section. Composites are strong and lightweight, ideal for fuel economy, but more difficult to diagnose and repair than traditional metal aircraft. We will be watching this situation to see what evolves.
Links to todays news follow:
- IAM rejects Boeing’s latest contract offer – AirInsight
- Boeing needs to settle its machinists strike – Now: Thomas Black – Bloomberg Law
- Can Ortberg’s reforms get Boeing back on an even keel? – Flight Global
- Boeing’s new CEO doesn’t sound bullish on space – Payload
- Boeing’s crisis triggers industry-wide disruptions in the aerospace market – TLI
- Boeing strike continues as union rejects contract, scuttling CEO’s recovery plan – The Register
- American Airlines is fed up with Boeing – Quartz
- Boeing 787 Dreamliner fuselage cracked and damaged upon landing – Aviation A2Z