Boeing, Boeing, Gone -Deepnews Digest #34

deepnews logo

Deepnews Digest #34

Boeing, Boeing, Gone

Out with the old CEO, in with the new. Just before the new year, Boeing fired its chief executive Dennis Muilenberg, after spending most of 2019 struggling over questions about accidents involving its 737 MAX aircrafts. Though the move likely came over the holidays as a way to get as little attention as possible, there has been solid, in-depth reporting on the economic impact, issues of trust and the continued stories of victims from the crashes. Here are the top 25 articles, found by the Deepnews Scoring Algorithm.

Story Source
NBC News
Speaking out for the first time, a former Boeing manager says he warned the company about problems at its main factory in Washington state in the months before two of its 737 Max airplanes crashed in separate incidents, claiming the lives of almost 350 people.

Editor’s Note: Muilenberg’s departure comes amid increased scrutiny by the U.S. Congress of what the company knew regarding the safety of its aircrafts. This piece spotlighted by Deepnews includes an interview with former manager Ed Pierson before his testimony.

Financial Times ($)
It has been getting harder for staff to find parking spaces at Boeing’s Renton plant outside Seattle. For much of this year, the world’s largest aircraft manufacturer has been using the employee car park to store planes which it cannot deliver.

Editor’s Note:

Reuters
“The Board of Directors decided that a change in leadership was necessary to restore confidence in the Company moving forward as it works to repair relationships with regulators, customers, and all other stakeholders,” it said in a statement.

Editor’s Note:

NY Times
In a tense, private meeting last week in Washington, the head of the Federal Aviation Administration reprimanded Boeing’s chief executive for putting pressure on the agency to move faster in approving the return of the company’s 737 Max jet.

Editor’s Note:

Business Insider ($)
Here’s what else she has to say about how Boeing and its leadership fall short on the four dimensions of trust: competence, motives, methods, and impact.

Editor’s Note:

Reuters
NAIROBI/ADDIS ABABA, – Days after the March 10 crash of a Kenya-bound Ethiopian Airlines Boeing jet that killed all 157 people on board, strangers began calling or visiting bereaved families, saying they represented U.S. law firms.

Editor’s Note: One story often lost in the churn of news is that of the victims and their families. Here Reuters reports on the ground from East Africa about the families pursued by U.S. law firms looking at potential suits.

Bloomberg Business
On an overcast Friday in January 2016, thousands of employees gathered outside the 737 jetliner factory in a Seattle suburb for the first flight of the Max, the newest version of Boeing Co.’s 50-year-old workhorse. Thousands more watched a live feed at their desks. Two of Boeing’s ace test pilots sat at the controls, one an ex-U.S. Air Force fighter jock, the other a Navy veteran who’d also flown experimental planes for NASA. As the pilots fired up the first engine, the hulking plane rolled forward several feet — they’d forgotten to set the parking brake.

Editor’s Note:

Bloomberg Business
Boeing Co. was an aerospace industry bully for years, leveraging its position as the preeminent U.S. commercial-jet maker to squeeze its suppliers, badger its rivals with trade disputes and reportedly lobby for more oversight over the regulatory review of its own planes. Two fatal crashes and a global grounding of its best-selling 737 Max jet have upended the power dynamic. With its latest decision to halt production, Boeing’s comeuppance is complete.

Editor’s Note:

Associated Press
NEW YORK — Boeing ousted CEO Dennis Muilenburg on Dec. 23 with no end in sight to the crisis that has engulfed the vaunted American aircraft manufacturer since the crash of two of its 737 Max airliners.

Editor’s Note:

Financial Times ($)
It is almost 15 years since David Calhoun was first considered for the role of Boeing’s chief executive officer. He was running General Electric’s biggest division at the time, an infrastructure unit with sales of $47bn, and was up against another veteran of the Jack Welch-era in which GE’s status as a model for the rest of US industry was rarely questioned.

Editor’s Note:

The New York Times
It turns out that even as Boeing continues to work on technical fixes to the plane that are needed for regulatory approval, it has repeatedly surveyed thousands of passengers around the world to try to find out the answer.

Editor’s Note:

Yahoo Finance
The resignation of embattled Boeing (BA) CEO Dennis Muilenburg is a “first step” toward the company restoring focus on safety and innovation after two deadly crashes, the father of a 24-year-old Ethiopian Airlines crash victim said on Monday.

Editor’s Note: Not all of the victims were from East Africa. Here Yahoo Finance speaks with the father of 24-year-old Massachusetts native Samya Stumo about continued accountability at Boeing.

Seattle Times
Muilenburg’s position, under pressure since March, became untenable this month following a breakdown of relations with the Federal Aviation Administration (FAA) and the growing anger of Boeing’s suppliers and airline customers over the collapse of its optimistic forecast that the MAX could be cleared to fly this year.

Editor’s Note:

AFP
Boeing provided a fresh batch of incriminating documents on the 737 MAX to regulators and congressional investigators, only hours after announcing a leadership shakeup, officials confirmed Tuesday.

Editor’s Note:

Forbes
For any passenger uneasy about flying on a Boeing 737 MAX after its two deadly crashes and worldwide grounding, Boeing 737 chief pilot Jennifer Henderson has a message: “When the 737 MAX returns to service, I would absolutely put my family on this airplane.”

Editor’s Note:

The Points Guy
Not all airplanes launched this decade have been a success. Alhough the Boeing 737 MAX has sold in the thousands, it has been grounded worldwide for almost a year now, and won’t return to service until well into 2020. Boeing has even suspended its production, since it can’t deliver the planes to customers that cannot fly them

Editor’s Note:

CBS News
Former Boeing CEO Dennis Muilenburg’s 2019 has included a second deadly 737 Max jet crash, several missed safety warnings, brutal Congressional grillings, blown deadlines, an airplane-production halt, and now a multi-million-dollar golden parachute.

Editor’s Note:

Chief Executive Group
Boeing announced Monday morning that its embattled chief executive Dennis A. Muilenburg had resigned, replaced by the company’s current chairman of the board, David L. Calhoun, who will become chief executive officer and president, effective January 13, 2020.

Editor’s Note: The departure of Muilenberg is of course at its core, a c-suite shuffle. Here Dan Bigman of Chief Executive looks back at the CEO’s tenure and a previous interview with him.

The Conversation
It is becoming increasingly clear Boeing has cut corners, presumably under pressure from the performance of its Airbus competitor. Boeing has been accused of delivering the aircraft before it was ready to fly safely.

Editor’s Note:

Chicago Tribune
Air travel is safe because aircraft manufacturers, airlines and government regulators all perform at high levels. Chicago-based Boeing, one of the world’s leading technology companies and the largest U.S. exporter, ripped a gigantic hole in the fabric of international air travel by mishandling the development and rollout of a new aircraft. Two of its 737 Max jetliners crashed in less than five months, killing a total of 346 people in Indonesia and Ethiopia.

Editor’s Note:

NPR
Boeing’s decision to halt production of its 737 Max jet next month will have far-reaching impacts on thousands of workers at supply chain companies in Wichita, the “Air Capital of the World.”

Editor’s Note:

NBC News
Boeing’s incoming CEO David Calhoun, a 10-year board member, is inheriting a company in crisis, as the nation’s top exporter navigates the fallout from two crashes of its bestselling 737 Max planes. Analysts painted a picture of Calhoun as a logical choice to right the ship.

Editor’s Note:

24/7 Wall St.
Last week, the U.S. Senate passed the National Defense Authorization Act (NDAA), clearing the way for the president to sign the defense spending bill into law before Congress takes its annual holiday vacation. The House of Representatives passed the 3,488-page legislation previously. This is the 59th consecutive year that Congress has finalized and passed an NDAA.

Editor’s Note:

Financial Times ($)
Boeing needs more oversight from international regulators, according to the EU’s aviation safety chief, after weaknesses in US oversight were exposed following two fatal crashes of the 737 Max jet.

Editor’s Note:

Associated Press
As Boeing prepares to shutter much of a huge factory near Seattle that builds the grounded 737 Max jet, the economic hit is reverberating across the United States in places such as Wichita, Kansas; Stamford, Conn.; and Cincinnati.

Editor’s Note: The consequences of the indefinite Boeing 737 Max production stoppage will impact others beyond Muilenberg, and others beyond Boeing. Here the AP looks at the suppliers for the plane across the U.S.

($) = This source has a hard paywall. You will need to suscribe to view this article.