Boeing HQ
Today’s key stories about Boeing center about slowing production rates, counterfeit titanium, and a MAX 8 incident.
Boeing has told suppliers that it is pushing its output goal to the right by three months, amid continuing quality issues and increasing FAA scrutiny. It is our belief that this will not be the last adjustment to supplier rate expectations.
The FAA is also investigating reports of counterfeit titanium from a supplier to Airbus and Boeing with false documentation. This is not the first incident of false documentation from Chinese sources, and will likely not be the last. The impact will be removal and replacement of all parts with the suspected material on 737 MAX, 787, and A220 aircraft.
An incident with a MAX 8 off the coast of Hawaii made the other headline, descending within 400 feet of the ocean in what appears to be a pilot induced situation. Nonetheless, when every Boeing incident is now sensationally reported, even with safe landings, this incident does not help Boeing’s reputation.
In other stories, both the number and incidents of whistleblower comments is growing, including another speaking about “problems running deep” at Spirit Aerospace. Additional comments on Boeing’s culture speak about quality failures at Boeing, Additional Congressional inquires from Senator Grassley add to FAA, NTSB, DOJ, SEC, and Congressional investigations. With multiple investigations, is management’s attention diverted from solving the problem. Finally, even in Korea media are talking about the fall of Boeing and GE in business editorials, as Boeing has become an international symbol of failure under David Calhoun, who has been unable to turn around Boeing’s “quality escapes.”
Links to today’s key stories follow:
- Boeing tells suppliers it is slowing 737 output goal by 3 months, sources say – Reuters
- FAA investigating titanium used in some Boeing, Airbus jets – Reuters
- Boeing whistleblower tips to FAA soar since door panel blowout – Bloomberg
- Southwest plane plunged within 400 feet of ocean near Hawaii – Bloomberg
- Boeing 737 MAX 7 delays imbalance Southwest airlines strategy – Aviation A2Z
- Quality failed Boeing, not the other way around. Here’s why – Industry Week
- Boeing, FAA face new Congressional inquiry from Senator Grassley – Mint
- As Boeing looks to buy a key 737 supplier, a whistleblower says the problems run deep – NPR
- Lessons from the fall of Boeing and GE – Joong Ang Daily
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