Boeing HQ
Today’s key stories, other than air show orders covered elsewhere in our site, focus on mixed news. Good news includes an agreement between Boeing and Antonov to collaborate on defense projects and the resumption of 737 MAX deliveries to China after a two month pause. The latter is particularly important to cash flow generation in the third quarter, as Boeing needs to both reduce its inventory holding costs and generating final payments upon aircraft deliveries.
Legal news on a couple of fronts also made headlines. First, some investment funds indicated that Boeing was unlikely to be able to extricate itself from securities suits after the 737 MAX settlement. Boeing’s guilty plea has implications for civil lawsuits, as with the company pleading guilty, it makes proof of misconduct a clear fact.
In related legal news, there remains controversy over the selection of a monitor for Boeing in conjunction with the 737 MAX plea deal. Apparently the current process includes Boeing’s participation in selecting the monitor that will oversee it, which opens the question of an independent monitor.
Finally, Ihssane Mounir, SVP for Global Supply Chain and Fabrication at Boeing admitted that airlines and suppliers had the right to be skeptical about the company’s jet output forecasts, particularly after recent shortfalls from anticipated rates.
Links to today’s key stories follow:
- Boeing, Antonov to collaborate on defense projects – APDR
- Boeing resumes 737 MAX deliveries to China after two-month pause – BNN Bloomberg
- Funds say Boeing can’t ditch 737 MAX securities suit – Law360
- The omnibus monitor for Boeing: Representing all stakeholders – JD Supra
- Boeing exec says fair to say planemaker failed commitments to suppliers – Yahoo
