Boeing HQ
Today’s key stories focus on a wrap-up of the Farnborough Air Show, finalizing Boeing’s plea deal with the DOJ, the stranded Starliner, and China.
On the last trade day of the air show, Airbus brought in 95 new orders to leapfrog Boeing and take the order book lead for the show. Boeing started rapidly, while Airbus finished the show stronger after completing deals at the event.
The final details of the plea deal with the Department of Justice have been solved, and Boeing pled guilty to a felony for defrauding the United States after purposely misleading the FAA regarding the MCAS system about the 737 MAX family. The final consequences for Boeing with government contracts is unknown, as both the US and foreign governments prohibit doing business with felons convicted of fraud.
Reactions to the plea deal continue to be strong, and negative. A story in Al Jazeera provides an interesting illustrated history of that deal, and is well presented. With the Boeing agreement, the DOJ has filed the agreement and is now awaiting approval by the presiding judge.
The latest update on Thursday regarding the Starliner informed us that there was still no date for the astronauts return to Earth, extending the “stranded in space” meme in the media. The ground tests have been extensive, and need interpretation. Understanding the problem in detail is critical as some of the faulty components will be in a module that will burn up upon re-entry.
While deliveries to China have resumed, restoring a stream of needed cash flow for Boeing, the situation with China remains problematic according to Hong Kong’s South China Morning Post, who are typically very well informed. The Economist has a story about China joining the duopoly, but not immediately as they have a long way to go to gain international orders and ramping up production. But the C919 will provide them a foothold from which China can learn and grow, which they are adept at doing when it is a national priority – and it is.
Links to today’s key stories follow:
- Airbus leapfrogs Boeing at Farnborough with major flynas order – BNN
- Boeing finalizes plea deal with DOJ over misleading FAA during 737 MAX evaluation – ABC 13
- A soft landing for Boeing – Al Jazeera
- Boeing is getting a sweetheart deal from the Feds – Jalopnik
- NASA says no return date yet for astronauts and troubled Boeing capsule at space station – Toronto Star
- Can China smash the Airbus-Boeing duopoly? – The Economist
- Boeing not yet facing clear skies in China even as deliveries resume, executive visits – SCMP
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