Boeing HQ
Today’s key stories about Boeing examine how Boeing got into problems and whether it is likely to get out of difficulties on a timely basis. Boeing’s cash burn is leading the company to sell $10B in bonds, just as it faces credit downgrades to just above junk level, with a well oversubscribed offering.
I’ve included my story on why Boeing’s next CEO needs to be an outsider to be able to credibly introduce cultural change. Boeing insiders have been stepped in the “shareholder value” culture for 27 years since, and that culture needs to change. Without a culture change, Boeing will struggle and fail. There are still prescriptive stories, and FCPA Compliance talks further about cultural change.
Finally, the order book remains strong, and backlog may increase as Turkish is contemplating a 235 aircraft order from Airbus and Boeing that is currently being negotiated. The need for fuel-efficient lift, for both growth and replacement, remains strong as airlines are finally fully back from the global pandemic.
Links to today’s key stories follow:
- Can Boeing steady the ship after bumpy start to 2024? – Flight Global
- Requiem: How the lazy-B veered off the runway – Post Alley
- Boeing burns through £1bn a month to contain 737 safety crisis – This is Money
- Why Boeing’s new CEO needs to be an outsider – AirInsight
- Boeing looks to sell bonds after reporting cash burn – Yahoo finance
- Boeing gets orders almost eight times its $10 billion bond sale – Mint
- FCPA Compliance Report: How Boeing can make a cultural comeback – JD Supra
- Turkish Airlines negotiates with Airbus, Boeing to buy 235 planes – Daily Sabah
- Explained: Why a US university is pausing grants from Boeing amid pro-Palestine protests? – OneIndia
The Bottom Line
Stories in the press about Boeing have changed this month from when Boeing recovers to if Boeing recovers, indicating a lack of confidence from business reporters examining the company, which has problems with all four major programs, the 737 MAX, 787, 777-X, and KC-46A. Management is now pushed into a corner with four unique priorities to fix all at once, without the assets and personnel to accomplish the task.
