Boeing HQ
Today’s news centers about yet another safety problem for the Boeing 737 and a lack of progress after the company and union resumed talks. The cause of a rudder failure has resulted in an urgent safety alert from the National Transportation Safety Board that should result in an airworthiness directive being issued by the FAA, likely later today or tomorrow.
The rudder on some Boeing 737NG and MAX models could become stuck because some seals at supplier Collins Aerospace were installed backwards, allowing water to enter and freeze at high altitudes, inhibiting rudder movement. While less than 400 parts were discovered to have been incorrectly assembled, they need to be removed and replaced from the aircraft they were installed on to avoid a potential loss of control of the rudders. Both the older 737NG and 737MAX models have been impacted.
The strike continues at Boeing, as wage talks broke off after resumption on Friday with no progress. Apparently Boeing is sticking with a ‘best and final’ approach and the union is sticking to its demands. With a daily cost of about $100 million, the strike will be taxing to Boeing’s already shaky financial position. Analysts report that the strike will negatively impact workers in the near term and company stockholders as losses and debt mount, likely requiring an equity raise that will be dilutive to shareholders. Boeing’s tactic of negotiating in public has upset union leadership and may have the impact of extending the strike to the point at which it significantly damages the company’s balance sheet.
The impact will also hit the supply chain, as Spirit Aero and other suppliers are reviewing contingency plans to furlough employees if the strike is prolonged.
The union understands that they are in a position of strength, after having been in a position of weakness during the prior negotiation, and intend to make up lost ground in wages and pension benefits. It appears to be payback time for Boeing, who are in a position of weakness.
Finally, SpaceX successfully launched the rescue rocket with two empty seats to the ISS for a February return to earth, rescuing the stranded Starliner astronauts. Could the Gilligan’s Island like saga of finally have light at the end of the tunnel, as the 8 day mission will stretch to 8 months in space.
Links to today’s key news follows:
- Rudder failure on Boeing 737s causes urgent safety alert from NTSB – MyNorthwest
- Boeing wage talks break off without progress to end strike, union says – Reuters
- Boeing union strike to pummel workers and shareholders, analysis finds – Daily Caller
- Spirit Aero reviews furlough contingency plans amid Boeing strike – Deccan Herald
- Payback time: Now it’s machinists turn to mount the barricades – The Nation
- SpaceX launches two to space station, giving Starliner astronauts a ride home in February – CBS
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