Today’s key Boeing stories focus on the NTSB hearings on the MAX 9 Alaska Airlines door blowout and NASA’s dilemma with the Starliner capsule and its return to Earth.
Executives from both Boeing and Spirit AeroSystems will testify at an NTSB hearing on the MAX 9 emergency with Alaska Airlines door plug blowout flight in January. It is likely that the NTSB conclusion that bolts were not installed on the door plug will be a key element of their inquiry, as the agency seeks to determine where and how the failure to install the bolts necessary to secure the plug occurred. With executives from Boeing, Spirit Aero, and the IAM union testifying, the potential for finger-pointing will be interesting to watch.
NASA may be forced to send Boeing’s Starliner capsule back empty, as testing and repairs are difficult in space, and the docking port at the International Space Station that it occupies is needed for the next crew rotation mission, scheduled in two weeks time. Either the capsule needs to be untethered from the station, which would require more propellent and helium use to re-dock and then return later, or potentially return empty, without the astronauts. Of course, the schedule could also be delayed, with the cause being Starliner faults. The latter two would be a major embarrassment for Boeing that could result in the program not being renewed by NASA for failure to meet its basic requirements – to safely transport passengers to and from the ISS.
Some Wall Street analysts are rightly worried about Boeing’s use of cash, which amounted to $8.2 billion in the first half of 2024. With additional cash outflows projected for the third quarter, and potentially the fourth quarter, there is concern related to maintaining an investment grade rating for the company. The $10 billion line of credit to cover cash shortfalls last year has now been completely drawn down, adding to total debt by that amount during the second quarter. The turnaround in production cannot come soon enough, but the FAA isn’t going to rush any process until it is satisfied with quality and safety requirements.
Finally, discussion on a compliance webcast for attorneys focuses on Boeing’s culture as an element of compliance. Measuring culture and attitudes is always difficult, and presents potential problems for the independent monitor called for in the agreement.
Links to today’s key stories follow:
- Boeing, Spirit AeroSystems execs to testify at NTSB hearing on MAX 9 emergency – Yahoo
- FCPA Compliance Report: The Boeing plea agreement – culture is the key – JD Supra
- NASA may be forced to send Boeing’s busted spacecraft back empty – Futurism
- Boeing stock dips as Bernstein cuts price target amid cash concerns – Investing
