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April 24, 2024
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Today’s key Boeing stories focus on the fallout from the aircraft shortage, which led to United offering pilots voluntary time off and schedule cutbacks at multiple carriers.  

The Department of Justice has re-opened its criminal investigation into the 737 MAX crashes after Boeing failed to meet its requirements with the January 5th incident violation, two days before the expiration of the deferred prosecution agreement.  Of course, the Boeing management change continues to dominate, including why Boeing failed to embrace lean manufacturing,  an interesting piece on the history of Boeing’s problems, and the rare traits the next Boeing CEO will need for success.

Links to today’s key stories follow:

  • United offering time off to pilots, pointing to delays in Boeing deliveries – The Tribune
  • DOJ to meet with families of MAX crashes’ victims as Boeing probe intensifies – Seattle Times
  • Boeing executives failed to lead, waved off lean – Industry Week
  • The Boeing Nosedive – New York Magazine
  • Summer travel could be extra chaotic as United pilots take unpaid leave and Boeing issues pile up – Business Insider
  • Boeing needs a CEO with very rare traits – Fortune

The Bottom Line:

Airline CEOs remain upset with Boeing, as further aircraft delays have upset summer schedules, plans, and staffing levels. Boeing’s problems have become major customer problems, so a group of US airline CEOs demanded a meeting with the Boeing Board without the CEO being present, effectively firing him. Many stories in the wake of the shake-up speculate about the new CEO and the traits s/he requires to turn the company around.

Boeing remains a troubled company, and the downside of their problems negatively impacts customers and the traveling public, who face higher fares in the wake of increasing demand and supply constraints.  The longer those impacts continue, the stronger the call for change at Boeing will be.  While Boeing needs to choose the successor to David Calhoun carefully, the company may not be able to wait until the end of the year, as Calhoun has proven himself incapable of effecting significant change at Boeing.

author avatar
Ernest Arvai
President AirInsight Group LLC

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