DBEA55AED16C0C92252A6554BC1553B2 Clicky DBEA55AED16C0C92252A6554BC1553B2 Clicky
November 4, 2024
Boeing

Boeing HQ

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The key news and analyses over the weekend speculate on how long the strike will continue and the difficulties of Boeing’s current situation.  The tenor of articles is changing, given the difficult position the IAM has placed Boeing in, with some articles now asking if rather than when Boeing can be turned around.   That’s a question we asked four years ago.

Perhaps part of the reason for that speculation is the difficult labor history between the union and Boeing, including the 10 year contract that cost pensions and resulted in marginal wage increases.  There is a significant history here, and while Kelly Ortberg is new to the situation, that history is impacting the negotiations today.  One story calls the situation ‘the ultimate management test.’

Meanwhile, Boeing’s ability to sustain the losses associated with the strike have come into collection, as well as the health of the supply chain and their ability to rebound once the strike ends.  There is concern up and down the supply chain, as well as with airline customer who are waiting patiently for new aircraft.  At this year’s reduced rate of production, what had been a 7 year backlog would extend to 13 years, unacceptable for customers.  The industry needs this strike to end sooner rather than later, which means Boeing will need to sweeten their latest offer.

Finally, media reports indicate that Boeing is looking to sell its space operations.  It has already been seeking a potential buyer for its booster joint venture with Lockheed Martin, United Launch Alliance, and may soon be adding the ill-fated Starliner program to programs for sale.  The negative publicity and losses from cost overruns have made space a distraction from a turnaround of the company.

Links to today’s news follow:

  • As machinists strike extends, Boeing is running out of runway – Seattle Times
  • At Boeing, it’s the strike of the long memories – Seattle Times
  • ‘Can’t sustain for long’: Renton businesses struggle as Boeing strike continues – CBS Austin
  • Union’s rejection of Boeing offer threatens jobs at aerospace suppliers – Reuters
  • Boeing is looking for an escape hatch from the space business – Quartz
  • Are Boeing’s problems beyond fixable? – ars Technica
  • Boeing’s new CEO is taking on the ultimate management test – Business Insider
author avatar
Ernest Arvai
President AirInsight Group LLC

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