Today’s key stories focus on the priorities for Boeing’s new CEO, a proposed airworthiness directive on the 787, and Q2 financial results.
Boeing’s new CEO is moving to Seattle and will have a Seattle-based office, moving him closer to the center of activities for the troubled commercial airplanes division. That in itself, indicates a return to the historic leadership location for the company, and hopefully, a return to the historic culture that existed prior to the McDonnell-Douglas merger. That is positive news.
The Boeing board also waived the mandatory retirement age for Kelly Ortberg, the new CEO, just as it had for Dave Calhoun. This is causing some debate on the effectiveness of those policies if waivers are granted routinely at the top of the organization.
Boeing reported its financial results, which were a disaster and included massive free cash flow usage ($4.3 billion) – but announced their new CEO at the financial reporting meeting. This was a classic “look here, not there” move by Boeing to take attention off of their under-performing Wall St. expectations.
The FAA is proposing a directive on the 787 Dreamliner after an inspection lapse on some landing gear components. Apparently, a single employee failed to perform required materials testing on components that will need to be re-inspected, in another example of Boeing’s failed safety system.
Lawyers for families of the 737 MAX crash victims are trying to block Boeing’s plea deal, citing the low level of fines and demanding much more. Their changes for success are likely quite limited at this point in time.
Finally, a story speaks to Boeing’s Starliner, and how it has cost at least twice as much as the competing SpaceX Crew Dragon. That indicates a fundamental cost problem at Boeing’s defense unit, something the new CEO will need to quickly address.
Links to today’s key stories follow:
- Boeing’s new CEO already seems to have given a major indication of where his priorities lie – Business Insider
- Boeing waives its mandatory retirement age for new CEO Kelly Ortberg, adding to the debate over such policies – Fortune
- FAA proposes directives after lapse on Boeing Dreamliner aircraft – Seattle Times
- Boeing reports second quarter financial results – AirInsight
- Lawyers try to block Boeing’s plea deal – Manufacturing.net
- Boeing 737 MAX crash families say planemaker should face much higher fines – Reuters
- Boeing’ Starliner has cost at least twice as much as SpaceX’s Crew Dragon – ars Technica
