More Boeing Bad News

[ian16th]

More departures (or rats leaving a sinking ship)

https://www.seattletimes.com/business/b ... to-retire/

PP

Not; 'He is retiring', or 'He is taking retirement', but 'He will retire!'.

Looks like pushed, not jumped.

[PHXPhlyer]

Either way, probably a rat.

PP

[PHXPhlyer]

Don't know if this has been posted here.
Lots of shiny potential scrap metal.

https://www.businessinsider.com/boeing- ... eld-2019-8

PP

[TheGreenGoblin]

More departures (or rats leaving a sinking ship)

https://www.seattletimes.com/business/b ... to-retire/

PP

Not; 'He is retiring', or 'He is taking retirement', but 'He will retire!'.

Looks like pushed, not jumped.

One wonders what this attorney's payout will be? Dennis Muilenburg is likely to do handsomely out of his package.

Fired Boeing CEO Dennis Muilenburg could walk away with $52MILLION payout - as families of 737 Max crash victims await just $144K compensation from a company fund

Ousted Boeing CEO Dennis Muilenburg could walk away with up to $52milllion.

That means Muilenburg will be getting 360 times the amount of $144,500 that Boeing will be paying to families of victims from both 737 Max crashes

https://www.dailymail.co.uk/news/articl ... -144K.html

[TheGreenGoblin]

What is bad for Boeing is even worse for suppliers like Spirit, the company that builds Boeing 737 Max fuselages, that may have to furlough workers in the new year.

Fuselage manufacturer Spirit AeroSystems announced that Boeing directed the company yesterday to stop all 737 MAX deliveries to Boeing, effective January 1st 2020. The direct reason is Boeing’s announced temporary suspension of 737 MAX production. Accordingly, Spirit will suspend 737 MAX production beginning on January 1st.

According to Spirit, revenue from 737 aircraft components represents more than 50 percent of the company’s annual revenue. This suspension will have an adverse impact on its business, financial condition, results of operations and cash flows.

https://samchui.com/2019/12/23/spirit-a ... gg46iEYBPY

The ramifications of this debacle will cascade right down through the Boeing supply chain,

[Boac]

Rumours that Southwest have been paid $125M by Boeing for the Max fiasco.

[PHXPhlyer]

BOAC:

Any source?

PP

[Rwy in Sight]

Shall we consider it as a down-payment since the amount due can't be calculated with out RTF date?

[Pontius Navigator]

See there are rumours at TOP about the pickle fork issue. Had it gone away or is it shark infested custard?

[PHXPhlyer]

Boeing’s 737 MAX crisis leaves it badly behind in ‘arms race’ for next decade’s jets

https://www.seattletimes.com/business/b ... ecades-jet

PP

[ian16th]

Rumours that Southwest have been paid $125M by Boeing for the Max fiasco.

I don't see how the costs can be calculated yet.

[Fox3WheresMyBanana]

I suspect that's an interim payment for costs already provably incurred.
On which topic, how long does the MAX need to stay grounded for before Boeing goes bust?

[Boac]

PHX https://www.luxurytraveldiary.com/2019/ ... om-boeing/

Yes, it will be a small 'deposit', I feel.

[Rwy in Sight]

PP could you check your link please: it appears broken.

Fox3 a more optimistic question is when it would be more economical to create a clean sheet design for the 150+ seat segment?

[Fox3WheresMyBanana]

I think the answer has already proved to be "back when they approved the MAX". As I'm sure many engineers at Boeing told senior management at the time.
The problem as I see it is that such a decision now would mean an admission of a total f#ck-up with the MAX, not just then but also with the decision to try and fix it now. My impression of the sociopaths running most large corporations these days is that they are incapable of making such an admission.

[PHXPhlyer]

https://www.seattletimes.com/business/b ... ades-jets/

PP

[PHXPhlyer]

Good on Southwest!

Southwest estimates this incremental profit-sharing accrual to be approximately $125 million USD, and officials said the money would be added to the company’s employee profit-sharing fund.

PP

[Rwy in Sight]

Isn't a human tendency to drop good money after the bad. I still remember the 200 € paid to fix dad's computer and obtain a very slow machine rather spend 400 € and get a good one brand new. Most leaders just don't know where to draw the line.

[Fox3WheresMyBanana]

“Boeing has no friends anywhere,”

That's my takeaway from the Seattle Times article.
The short-term financial approach from a top corporation necessarily p!sses everybody associated with them off, including Government. And they are quite rightly going to make Boeing senior management crawl over broken glass financially and legally to get any co-operation back, because this is the only chance they get to do that, nevermind any vindictiveness that may be out there. And the short-term financial approach puts guys into senior management who are both sociopaths and one-trick ponies. They don't know how to do anything but short-term financials. Their entire mantra is "All businesses are the same". That's been quoted specifically by Boeing senior management whilst they were developing the MAX. Well, they aren't. Developing a new jet is Boeing's only "out", and it always was. The financial whizz-kids are looking for their personal "out", not Boeing's. But there isn't one.

[ian16th]

Congressional investigators are combing internal Boeing documents for evidence of malpractice, and a Department of Justice probe means even a criminal indictment is not ruled out.

This is political grandstanding. It still is not in the interest of the greater US economy to wreck Boeing.

The USA military depend on Boeing for many products, and like in 1971 when RR went bust over the RB 211, a conservative UK government HAD to nationalise the company to ensure its existence. The defence of the Realm was at stake. How many RAF a/c had RR engines? The US government will find itself backed into the same corner, and come up with some sort of fudge.

It will be better for the USA if some sort of working company can come out of the other end of this, and it will.