December 4, 2024
Boeing

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Today’s key stories focus on a variety of topics at Boeing.  The good news is that Boeing delivered a rocket stage to NASA for the first manned launch to circumnavigate the moon since the Apollo program. Despite issues with the Starship, Boeing has successfully built launch vehicles and is preparing for the next step in space exploration.

Union workers at Boeing’s facilities in the Pacific Northwest are taking a strike vote, and the union is likely to put additional pressure on Boeing at a time the company is dealing with multiple issues.  The next contract should be an interesting negotiation, and will likely set a standard for the industry.

On the investigative front, the NTSB will probe the FAA’s oversight of Boeing at an investigative hearing early next month.  While the FAA, and not Boeing, is the target of the probe, a finding that the FAA was too lax would likely see increased oversight of activities at Boeing.  That could further negatively impact the ramp-up of production on the 737 MAX and other models.

The widespread impacts of Boeing’s 737 MAX crisis form the basis for another story focused on the disruptive impacts on airlines and the supply chain, as well as on Boeing itself.  A different story speaks to Boeing’s safety first changes, citing the slowdown in production rates and the costs associated with lower production on the industry.  With Boeing’s 737 MAX production rates continuing to be well below projections, and likely to remain at current levels throughout the year, the financial impacts are significant.

An interesting twist on Boeing’s plea deal is that the public may never know what Boeing really did during the development of the 737 MAX.  Without a trial, at which many more details would have been unearthed and exposed to public view, Boeing’s internal machinations remain internal.  It is also clear that those individuals who created what is now a toxic culture at Boeing have not been held responsible for their actions, particularly senior management and the Board of Directors.  The shift to a company that focused on profitability rather than engineering, quality and safety resulted in the problems that emerged on the 737 MAX.

Finally, one indication of how far Boeing’s reputation has fallen is that the 737 has become the butt of comedic political jokes.  A noted comedian commented that a politician had ‘less integrity than a Boeing 737.’ That indicates how far respect for Boeing has fallen in popular culture.  It is a sad commentary on the depth of the public relations hole Boeing needs to ascend.

Links to today’s key stories follow:

  • Boeing delivers rocket stage to NASA – Manufacturing
  • Boeing’s Washington state workers are teeing up a strike – Quartz
  • NTSB to probe FAA oversight of Boeing at  Aug 6-7 investigating hearing – Investing
  • Boeing’s 737 MAX crisis ripple effects disrupt airlines, suppliers – Benzinga
  • Boeing: Safety first, but at a cost – Airliner Watch
  • We can’t know what Boeing really did without a trial – the Federalist
  • ‘Less integrity than a Boeing 737’: comedian ‘Liberal Redneck’ recounts night with Vance – Raw story

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Ernest Arvai
President AirInsight Group LLC

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