Boeing HQ
With Donald Trump winning the US Presidency on January 20th, the key question is what his election will mean for Boeing and the US Aerospace industry. His proposed tariffs could both introduce a trade war and have deleterious impacts on the company, including lower sales, higher costs, lower defense budgets, cozy regulatory oversight, and elimination of environmental regulations.
An interesting treatise from MIT’s Sloan School discusses how not to organize in-house experts, using Boeing and the 737 MAX certification process as an example. The company had enough talent to avoid a fatal flaw, but it did not organize that talent well.
A story from South Carolina talks about Boeing’s strike is over but not the company’s problems: this story underscores the difficulty of Kelly Ortberg’s turnaround task. That turnaround will also include the acquisition and integration of Spirit AeroSystems, which announced that it has ‘substantial doubt’ that it can stay in distance. Amid Boeing’s planned acquisition, the company needs a substantial cash infusion, which Boeing will likely be forced to provide. That’s not what Boeing needed when bleeding cash from the strike.
After reviewing new photos of the Boeing Starliner astronauts stranded at the International Space Station, the tabloids are raising concerns about their health. This is likely the result of their eight-day mission being expanded to eight months, with the associated impact of being in zero gravity for an extended period of time. Nonetheless, this rekindles an embarrassing moment for Boeing in the public eye.
Finally, Riyadh Air is looking at a significant order for wide-body aircraft from Airbus, Boeing, or perhaps both companies. That competition is likely to culminate in early 2025.
Links to today’s key news follow:
- What Trump election means for Boeing and US Aerospace – AirInsight
- How not to organize in-house experts: Lessons from Boeing – Sloan Review (MIT)
- Boeing’s strike is over, but its problems are not – The State
- A key Boeing supplier has ‘substantial doubt’ it can stay in business – Quartz
- Boeing shows why squeezing employees is reckless – Nir Kaissar – Bloomberg Law
- Riyadh Air plots new wide-body aircraft order – Flight Global
- New photos of stranded Boeing Starliner astronauts raise concerns about their health – NY Post
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