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WSJ: Can Boeing repair its reputation?
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Boeing is sort of like a pilot that has blown about four checkrides. The Starliner, KC-46, MCAS, and basic mechanical skills on securing a door plug.
it's going to require a decade or two of quality work to live down the current problems. Or as we used to say, in the military, it takes about ten attaboys to cancel out one aw$hit... |
Too big to fail.
Reputation is given too much credit. |
Originally Posted by JohnBurke
(Post 3758785)
Too big to fail.
Reputation is given too much credit. https://www.seattletimes.com/busines...won-on-orders/ And you now have the CEOs of two major US airlines publicly criticizing Boeing, one of which is contemplating walking away from the Max10 altogether. And when the pax are using apps that filter flights with yiur aircraft models from their ticket buying, that's not good. But the once cozy relationship Boeing had with the FAA Certification people is now gone for decades, which costs Boeing money and time for getting new aircraft on the market. And they have just been limited from any increase in their current MAX production: FAA halts Boeing MAX production expansion, ripples across aerospace industryCompany15:49, 26-Jan-2024CGTNhttps://news.cgtn.com/news/2024-01-2...e469cde4e.jpeg An Alaska Airlines Boeing 737 Max 9 aircraft with a door plug awaits inspection outside the airline's hangar at Seattle-Tacoma International Airport, January 10, 2024. /CFP The U.S. Federal Aviation Administration (FAA) on Wednesday informed Boeing that it will not grant any production expansion of the MAX, including the 737 MAX 9. This action comes on top of the FAA's investigation and ramped-up oversight of Boeing and its suppliers. The FAA also approved a thorough inspection and maintenance process that must be performed on each of the grounded 171 Boeing 737 MAX 9 aircraft. Upon successful completion, the aircraft will be eligible to return to service. "The January 5 Boeing 737 MAX 9 incident must never happen again. Accordingly, the FAA is announcing additional actions to ensure every aircraft is safe," the agency said. The FAA's order means Boeing can continue producing MAX jets at its current monthly rate, but it cannot increase that rate. It offered no estimate of how long the limitation would last and did not specify the number of planes Boeing can produce each month. Boeing said it would continue to cooperate "fully and transparently" with the FAA and follow the agency's direction as it took action to strengthen safety and quality. More problematic, neither the MAX 7 or MAX 10 meet current FAA standards established by Congress and their "grandfathering" to the older standards expired Jan 1. Both aircraft will require further grandfathering which some members of Congress and personnel in the FAA are already starting to oppose. |
Originally Posted by Excargodog
(Post 3758760)
Boeing is sort of like a pilot that has blown about four checkrides. The Starliner, KC-46, MCAS, and basic mechanical skills on securing a door plug.
it's going to require a decade or two of quality work to live down the current problems. Or as we used to say, in the military, it takes about ten attaboys to cancel out one aw$hit... Inflation really is hitting everything. |
Originally Posted by Excargodog
(Post 3758928)
Reputation matters in international sales and to an extent even in domestic sales. This is the fifth year in a row that Airbus sales exceeded Boeing sales.
Boeing has delivered less commercial airline airplanes to the market than Airbus. About half as many aircraft, as Airbus. Boeing has nearly double the revenue of airbus. 67 billion vs. 36 billion. https://www.statista.com/topics/3697/airbus-and-boeing/#dossier-chapter1 China Southern just took delivery of a -900 Max. The Chinese have been particularly cautious with the Max, but are taking new ones, now. Go figure. https://www.msn.com/en-us/money/other/china-takes-delivery-of-boeing-737-max-in-show-of-support-for-troubled-plane-maker/ar-BB1hdMaP Boeing has their fingers in a lot of pies. PR hits will hurt the bottom line, but Boeing is far too big to fail over a lost door plug. |
Originally Posted by JohnBurke
(Post 3758785)
Too big to fail.
Reputation is given too much credit. |
Originally Posted by tallpilot
(Post 3759309)
I agree Boeing is too big to fail, that doesn't make the situation less disgusting. This type of incompetence seems endemic in society. We get crocodile tears and promises to do better followed by the exact same mistakes. At some point they aren't mistakes but deliberate flaunting of safety standards for the sake of profit. It's mind-bogglingly unethical.
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Originally Posted by Beech Dude
(Post 3759312)
Yup. Boeing should clean slate design a proper new jet and it better be amazing. Come out with a new horse to reset the "brand" and put the 73 to pasture over the next decade.
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Originally Posted by JohnBurke
(Post 3759168)
Boeing has their fingers in a lot of pies. PR hits will hurt the bottom line, but Boeing is far too big to fail over a lost door plug.
https://www.defense-aerospace.com/us...kc-46-tankers/ And then there is the Starliner fiasco. https://arstechnica.com/space/2023/0...ound-problems/ and even after taking a $7Billion loss on the KC-46 problem previously their Defense division continues to bleed money: Boeing struggles to steer defense unit in another year of lossesBy Valerie InsinnaOctober 26, 202310:04 PM PDTUpdated 3 months ago https://cloudfront-us-east-2.images.arcpublishing.com/reuters/B6XMLMWKVNPPBOP7P255A2NAKE.jpgThe Boeing KC-46 Pegasus aerial refueling tanker is seen before a delivery celebration to the U.S. Air Force in Everett, Washington, U.S., January 24, 2019. REUTERS/Lindsey Wasson/File Photo Acquire Licensing Rights, opens new tab WASHINGTON, Oct 27 (Reuters) - Boeing's (BA.N), opens new tab defense business is proving harder to turn around than executives initially predicted, with supplier errors and high manufacturing costs contributing to $1.7 billion in losses this year on programs like the next Air Force One and NASA's Starliner capsule. Despite absorbing $4.4 billion in losses in 2022 – which executives said would lower the risk of future cost overruns – the unit has seen little improvement this year. Excluding last year, losses on Boeing's defense programs in 2023 exceed those from all years since 2014, according to a Reuters review of Boeing’s regulatory filings. Boeing is unique among its defense contractor peers, as companies like Lockheed Martin (LMT.N), opens new tab, General Dynamics (GD.N), opens new tab and RTX (RTX.N), opens new tab are seeing higher revenues due to demand from the war in Ukraine. Unlike those companies, however, Boeing is locked into handful of contracts that force the planemaker to take a loss when technology development goes over budget. The defense unit's losses this year include $933 million in charges in the third quarter, mostly comprising a $482-million loss building two Air Force One planes and a $315-million charge on an unidentified satellite program that had not previously lost money. Boeing has been adamant it won't enter into new fixed-price contracts for the development stage of weapons because the unpredictability associated with designing and testing a new product often brings unforeseen costs. However, the company's current fixed-price development efforts, which include the U.S. Air Force's KC-46 refueling tanker and T-7 training jet, new Air Force One planes, the Navy's MQ-25 tanker drone, and NASA's Starliner have all continued to run over budget this year. The latest charge for Air Force One brought total losses to $2.4 billion on a $3.9 billion contract to develop two planes. The program’s current schedule calls for the first jet to be delivered by September 2027. West also noted $136 million in additional losses taken during the quarter, including a $71-million charge for the MQ-25 program. And how many loose (or missing) bolts are acceptable in a aircraft certified to fly to 40,000 feet? When they secure ( or in this case don't) a door sized opening? They have two legacy CEOs screaming at them and stockholders like me are screaming as well. Boeing was actually one of the first stocks I ever bought. If I'd actually kept track of the basis 🤷♂️ I'd dump those shares. |
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