DiscoverGold
2 weeks ago
Saudia turns to Airbus, Boeing wide-body jets amid single-aisle shortage
By: Reuters | June 6, 2024
Saudia Group is in talks with Airbus AIR and Boeing BA over ordering wide-body jets to increase its capacity as planemakers face constraints in production slots of narrow-body aircraft, a spokesperson for the group told Reuters.
The state-owned group, which owns Saudia Airlines and budget carrier Flyadeal, last month ordered 105 narrow-body Airbus planes but had a requirement for 180, said Saudia Group General Manager, Communications and Media Affairs, Abdullah Alshahrani.
Air travel is surging post pandemic and demand for planes is outstripping production as supply chains struggle to ramp up at the same pace. Airbus in January said it is sold out until the end of the decade for single-aisle jets.
A lack of production slots at Airbus, especially for the A320, forced the group to look at wide-body jets, Alshahrani said in an interview on Thursday on the sidelines of the CAPA India aviation conference in New Delhi.
Alshahrani said the group had been "lucky" to get the 105-plane order with Airbus but needed more, adding that Saudia is looking at the Boeing 787 and Airbus A330.
The number of wide-body jets, which will serve both Saudia Airlines and Flyadeal, is under discussion but Saudia Group will place an order this year, he added.
Flyadeal's CEO told Reuters earlier this week that it is studying a possible order for between 10 and 20 wide-body jets.
Saudi Arabia is investing billions of dollars to diversify its economy away from fossil fuel and has an ambitious aviation plan, with new airlines, jet orders and potentially a huge international airport as it takes on regional rival and current Gulf travel hub, the UAE.
The kingdom is also trying to get China's COMAC to set up a local production facility as the Chinese planemaker steps up efforts to sell overseas and break into a passenger jet market dominated by Airbus and Boeing.
Alshahrani said Saudia Group plans to visit COMAC's China facility in September to test the jets so they can be considered in future, but it was "not the time" to place an order.
COMAC's planes fly almost exclusively within China and it is yet to receive benchmark certifications from the United States or the European Union.
Saudia Group flies to 100 destinations and plans to increase this to 150 by the end of the decade as it takes deliveries of 200 new planes, including the Airbus A321XLRs.
India is an important growth market for Saudia Group, which plans to regain share lost to rivals with more direct flights, new destinations and improved plane cabins.
Last year Saudi received 1.5 million visitors from India and Alshahrani said they want to grow this to 7.5 million by the end of the decade.
He said they met with Air India this week to talk about partnerships including a codeshare agreement.
"We want to work with Indian carriers closely on any type of cooperation to increase and offer good options to the Indian and Saudi passengers," he said.
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DiscoverGold
2 weeks ago
Boeing Had A Wild Weekend. The Stock Is Up
By: Barron's | June 3, 2024
Boeing investors have a lot to consider as a new week of trading begins. The stock is rising as a report of a potential new order offsets a flurry of negative developments during the weekend.
Shares were up 2.9% in early trading at $182.81, while the S&P 500 and Nasdaq Composite were up 0.4% and 0.8%, respectively.
A start in positive territory was far from certain. For starters, Boeing's first crewed launch of its reusable space capsule Starliner was delayed again. A Saturday launch attempt was scrubbed with less than four minutes left on the countdown because of a rocket computer issue. The first launch attempt, on May 6, was delayed by a separate rocket problem.
The rocket that carries the Starliner into space is supplied by United Launch Alliance, a 50/50 joint venture between Lockheed Martin and Boeing.
Along with the Starliner disappointment, the Guardian and The Seattle Times published more whistle-blower accounts about concerns with Boeing's production quality.
Production quality has been in focus since the Jan. 5 emergency-door- plug blowout of a 737 MAX 9 jet operated by Alaska Air. The incident, traced back to missing bolts, has resulted in more regulatory oversight, slower production, and lower earnings and cash flow estimates from Wall Street.
Coming into Monday trading, Boeing stock was off about 29% since the door-plug incident, which left a hole in the side of the jet at thousands of feet above the ground.
There was more bad news for investors. The new 777x plane, which is due to enter service in 2025, might be delayed until 2026, according to comments from Emirates CEO Tim Clark. Emirates has ordered more than 250 777x jets.
The good news on Monday came in the form of a potential new order. Bloomberg reported that Qatar Airways was close to an order for the 777x.
Qatar Airways flies a mix of Boeing and Airbus twin-aisle jets. The 777x is a twin-aisle jet. Its single-aisle fleet is all Airbus. Boeing referred Barron's to Qatar Airways for comment. The airline didn't immediately respond to a request for comment.
Wall Street was weighing in too. Baird analyst Peter Arment cut his target for the stock price to $240 from $300 a share but continues to rate the shares at Buy.
"We remain constructive on the Boeing stock for the long term as the brutal first half 2024 performance reflects peak in sentiment negativity coupled with [a] large mix of retail investors selling on the headline risks," wrote Arment.
Through early trading Monday, Boeing shares are still down about 30% year to date. He believes the second half of the year will be better for shares.
Overall, 60% of analysts covering Boeing stock rate shares Buy, while the average Buy-rating ratio for shares in the S&P 500 is about 55%. The average analyst price target for Boeing stock is about $213 a share.
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shajandr
2 weeks ago
Boeing Will Need Years for Turnaround, Emirates’ Clark Predicts
Story by Leen Al-Rashdan and Guy Johnson
(Bloomberg) -- Boeing Co. will need years to emerge from its current crisis, the biggest buyer of the US manufacturer’s widebody aircraft predicted.
“For me, this will be a five-year hiatus starting from now,” Emirates President Tim Clark said in an interview in Dubai. “I don’t think they will recapture their production line on all aircraft types.”
As a result of the manufacturing issues and delays on new widebody aircraft at the planemaker, Emirates is putting more of its Boeing 777 aircraft through an extensive retrofit program, Clark said. That’s raising the cost of that program to about $3.5 billion from previously $2 billion, he said.
Clark is an influential voice in the aviation industry because his company buys the biggest Boeing and Airbus SE aircraft in greater numbers than any other carrier. The executive has publicly used his status to point out performance issues at the two manufacturers, the only builders of large planes used on global routes.
Boeing’s 777-9 model, of which Emirates has ordered more than 100 units, is about five years late, and Clark said he has “no visibility” on a new time frame, most recently scheduled for mid 2025.
The carrier is “extremely exasperated” with Boeing as delays are obstructing the airline’s growth plans, Clark said, adding that he plans to meet Stephanie Pope, the new head of Boeing’s commercial aircraft subsidiary, in Dubai in coming days.
DiscoverGold
4 weeks ago
Boeing Stock Shrugs Off Dire Warning
By: Schaeffer's Investment Research | May 24, 2024
• Boeing's CFO warned of negative free cash flow in the second quarter
• The stock is down nearly 34% in 2024
Boeing Co (NYSE:BA) stock is up 0.6% to trade at $173.15 this morning, looking to bounce back from yesterday's 7.6% drop despite a dire warning. CFO Brian West said that free cash flow is likely to be negative in the second quarter, as troubles from multiple manufacturing mishaps persist.
Prior to yesterday's gap, BA was rallying headfirst into its declining 80-day moving average. The equity is pacing for a nearly 7% loss this week, and it sits nearly 34% lower in 2024.
Analyst sentiment doesn't match price action, either. Of the 22 covering brokerages, 15 still rate BA a "buy" or better. This leaves the stock vulnerable to a round of bear notes.
Options bears are taking their cues. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Boeing stock's 50-day put/call volume ratio of 1.49 ranks higher than 980% of readings from the past 12 months. This means options traders' have favored long puts over the last 10 weeks. Echoing this, the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.60 ranks in the low 2nd percentile of readings from the last 12 months.
It's also worth noting the stock's Schaeffer's Volatility Scorecard (SVS) stands at an 99 out of 100. This means BA exceeded option traders' volatility expectations during the last 12 months.
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DiscoverGold
4 weeks ago
Boeing Says Cash Flow Is Worse Than It Thought
By: Dow Jones Newswires | May 23, 2024
Boeing said it would burn billions of dollars more than expected in the coming months and likely won't generate cash for the full year, signaling the jet maker is struggling to contain the financial fallout from cascading production and supply-chain issues.
A month after announcing a nearly $4 billion hit in the year's first quarter, finance chief Brian West warned investors Thursday that the company is on track for a similar or bigger cash hole this quarter.
Boeing shares fell more than 7% in Thursday trading. The stock has lost roughly a third of its value so far this year, erasing more than $50 billion in market capitalization.
West also told investors that Boeing is unlikely to generate cash for the full year as the company deals with slowing production of its jets.
It is a bleaker picture from a month ago when the company said it expected to narrow its cash burn this quarter, and end 2024 cash-flow positive.
"We have frustrated and disappointed our customers because of some of the production and supply-chain issues we are up against," West said at an industrials and transportation conference in New York. He added that Boeing should begin generating cash in the second half of the year.
Boeing is grappling with slower production of its bestselling 737 MAX jets as it roots out quality problems after January's near-catastrophe on an Alaska Airlines flight. The troubles have drawn increased regulatory scrutiny and triggered a management shake-up.
West said Thursday that 737 deliveries will remain well below the company's goal of 38 jets-per-month through June. Boeing delivered 67 of the planes in the first three months of the year and is on track for about the same number in the second quarter, he said. He said production will pick up later in the year.
"We can't push the factory too hard or the system too hard because the payoff, if we do this right, is going to be big beyond 2025," West said.
Adding to the woes have been a string of unrelated issues that are both slowing production and preventing Boeing from delivering planes it has already built.
Problems range from parts shortages to the recent revelation, disclosed by Boeing, that its employees may have skipped some inspections on 787 Dreamliners and falsified inspection records. Boeing as of this week hadn't produced a new 787 this month, according to analysts. Dozens of the planes remain parked outside the jet maker's North Charleston, S.C., plant awaiting delivery.
The company's monthly jet deliveries in April hit their lowest level since the onset of the pandemic, when the decline in air travel brought jet production to a near standstill.
The latest issue: Boeing said this week that China has temporarily stopped taking delivery of MAX 8 jets so it can review batteries included in the 25-hour cockpit voice recorder aboard the planes. U.S. and Chinese regulators are in talks about the matter and Boeing said Wednesday that it would defer to those agencies.
The company said the Federal Aviation Administration and European regulators have signed off on the system, which meets requirements of some non-U.S. air-safety agencies that voice recorders capture 25 hours of audio instead of two.
Boeing had 85 of the China-bound MAX jets in inventory at the end of 2023 and delivered 22 so far this year. Deliveries resumed this year after a yearslong freeze by Beijing following two fatal crashes of the 737 MAX 8.
The company last month tapped debt markets to raise $10 billion as investors fret over the company's liquidity. It ended March with $7.5 billion of cash and investments, less than half what it had at the start of the year.
In April, Moody's Investors Service downgraded its rating on Boeing's unsecured debt by one notch to Baa3, the lowest investment-grade level. Moody's expects that cash-flow pressures will persist through 2026.
Boeing has said it is in talks to acquire Spirit AeroSystems, which makes fuselages for the 737, to help improve its quality.
West said the company is optimistic it can reach a deal with Spirit by the end of June. The talks have dragged out amid negotiations with rival Airbus about control of Spirit factories that produce parts for Airbus jets.
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DiscoverGold
4 weeks ago
Saudi Arabia snubbed Boeing with a huge Airbus order, the biggest aircraft deal in the country's history
By: Business Insider | May 21, 2024
• The Saudia Group announced an order for 105 Airbus jets on Monday.
• It comes as a reported Boeing order from Riyadh Air, also government-owned, has yet to materialize.
• Its CEO blamed negative media coverage as to why he hasn't yet announced the deal.
The Saudia Group announced Monday a huge Airbus order in a blow to Boeing.
105 narrowbody jets — a mix of A320neo and A321neo models — will be distributed between the flag carrier Saudia and its subsidiary low-cost-carrier flyadeal.
In a press release, the Saudia Group called it "the largest aircraft deal in Saudi aviation history."
Saudia is owned by the country's government, and the airline's chairman is also the transport minister.
The deal suggests Boeing's reputation is worsening around the world because the planemaker has formerly won big orders from the kingdom.
Last March, Saudi Arabia founded a second national airline, Riyadh Air, which placed an order for up to 72 Boeing 787 Dreamliners.
Boeing also looked set to win the deal for Riyadh Air's narrowbody jets. Shortly before last November's Dubai Air Show, Bloomberg reported that Riyadh Air was eyeing up an order for as many as 100 Boeing 737 Max jets.
However, that order has yet to materialize.
Tony Douglas, the Riyadh Air CEO, blamed negative media coverage during an interview with Reuters on Monday.
"What happened was the media three weeks later spent every hour of every day writing negative stories about commercial aviation," he said.
Douglas told Reuters he wasn't referring to January's blowout, in which an Alaska Airlines Boeing 737 Max lost a door plug in midair.
"The last thing I want to do is present my good news and have it in a context of things that are going on elsewhere, which are not quite as positive," he added. "Be it Airbus can't deliver on time [or] Boeing is having some technical problem."
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DiscoverGold
1 month ago
Did Buffett Scoop Up Shares of Boeing Without Us Knowing?
By: Wall St. | May 17, 2024
Boeing’s appeal to Warren Buffett is bolstered by its strong brand, quasi-monopoly status, and significant defense operations, which benefit from ongoing global conflicts and defense spending. With substantial cash reserves, Buffett may consider investing in Boeing (NYSE: BA) soon, especially as the company’s stock could stabilize or become more attractive due to potential whistleblower testimonies. The next few months are critical for assessing Boeing’s market position and potential investment opportunities.
Transcript:
Yeah. Something else people sometimes forget is that Boeing deep down is a defense company.
Right.
And there are enough wars or, you know, warlike situations in the world. So if you’re a defense contractor, the next five years could look pretty good for you.
Oh, absolutely. And, you know, there’s a constant flow of money from around the world, and you’ve seen the money that’s gone, you know, I mean, ostensibly the money for Ukraine, and it ostensibly is going right back to American arms manufacturers and defense contractors. So, yeah, absolutely.
Yeah, and as NATO moves weapons over, a lot of that weaponry has been sold to the NATO countries by U.S. manufacturers.
Right. That part of Boeing should continue to do pretty well. So let’s do this. I think if Buffett’s going to do something with Boeing, it’s probably going to be in the next few months. He’s going to wait maybe a little while, but I don’t think things are going to get worse at Boeing. They’re going to go sideways. So if he’s going to do something, I think he’ll probably do it soon. So let’s come back to this in a couple months. Let’s see where Boeing is trading. And maybe Buffett will surprise us and he will have already started to move in.
Right. Well, and we’ll see if there’s more whistleblower testimony that maybe is the final punch in the face to knock the shares down to a point where he’s willing to go in.
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DiscoverGold
1 month ago
The Boeing Company (BA) is Attracting Investor Attention
By: Zacks Investment Research | May 10, 2024
Boeing BA has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this airplane builder have returned +4.6% over the past month versus the Zacks S&P 500 composite's +0.2% change. The Zacks Aerospace - Defense industry, to which Boeing belongs, has gained 3.4% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Boeing is expected to post a loss of $0.51 per share, indicating a change of +37.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -2516.3% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of -$0.24 points to a change of +95.9% from the prior year. Over the last 30 days, this estimate has changed -159.1%.
For the next fiscal year, the consensus earnings estimate of $5.60 indicates a change of +2,434.9% from what Boeing is expected to report a year ago. Over the past month, the estimate has changed -8.5%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Boeing.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Boeing, the consensus sales estimate of $19.47 billion for the current quarter points to a year-over-year change of -1.4%. The $81.36 billion and $95.58 billion estimates for the current and next fiscal years indicate changes of +4.6% and +17.5%, respectively.
Last Reported Results and Surprise History
Boeing reported revenues of $16.57 billion in the last reported quarter, representing a year-over-year change of -7.5%. EPS of -$1.13 for the same period compares with -$1.27 a year ago.
Compared to the Zacks Consensus Estimate of $17.69 billion, the reported revenues represent a surprise of -6.34%. The EPS surprise was +20.98%.
Over the last four quarters, Boeing surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Boeing. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
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Jetmek_03052
1 month ago
Absolutely. My brother was a check airman for Continental before he retired. He would give Captains proficiency checks and evaluate First Officers for Captain upgrades. In the US that is. He said in his last years, he thought pilot basic airmanship was deteriorating at a rapid rate. It was due to the automation of the flight deck. Everything is figured out for pilots these days, they don't have to do much other than sit in the seat. Auro throttle, Auto Braking, Auto pressurization. EVERYTHING is done for them. And everything is fine until it breaks. The crew is supposed to be able to fly the aircraft without all that fancy "auto" stuff. They learn how to, but things so very rarely break, they forget. So in a true emergency, they lose that split-second decision-making edge. My brother said that many of the pilots he checked would choose to cancel flights, rather than go with an aircraft that a piece of equipment out - even if the MEL (Minimum Equipment List) said they could safely depart without it.
The Asian pilot crews are the worst ones. There is almost no CRM (Crew resource management). The captain is considered GOD-like and what he says goes. Most Asian first officers would sit on their hands and watch the captain corkscrew the aircraft into the ground, rather than raise some sort of alarm!
GolfFishSurf
1 month ago
Another one........
10:37 AM EDT, 05/09/2024 (MT Newswires) -- A Boeing (BA) 737 airplane carrying 85 people overran the runway on takeoff at the Dakar, Senegal, airport, causing injuries to 10 passengers, including the pilot, a statement posted on X, formerly Twitter, from Senegal's Minister of Infrastructure and Land and Air Transport, Malick NDIAYE, confirmed Thursday.
The Associated Press first reported the incident, citing the minister.
The Air Senegal flight HC301, operated by Senegal's regional airline, Transair, was bound for Bamako in Mali, and carried 79 passengers, two pilots, and four cabin crew members, the minister said. Emergency services quickly responded to evacuate passengers after receiving the alert, and necessary arrangements were made to assist the injured, before they were taken to a hotel for rest and further assistance, NDIAYE said in the statement.
Senegal's Bureau of Investigation and Analysis has initiated an investigation to determine the accident's causes.
Boeing didn't immediately respond to MT Newswires' request for comment.
Shares of Boeing were up nearly 0.5% in recent Thursday trading.
Price: 181.16, Change: +0.81, Percent Change: +0.45
Jetmek_03052
1 month ago
The spacecraft launch delay actually had ZERO to do with Boeing.
United Launch Alliance CEO Tory Bruno said an oxygen pressure-relief valve on the upper stage of the company’s Atlas rocket started fluttering open and close, creating a loud buzz. The valve may have exceeded its 200,000 lifetime cycles, Bruno said, which means it would have to be replaced, pushing the launch into next week.
The Atlas rocket design has been in service for decades.
Boeing makes the Starliner Capsule, which sits atop the rocket.
From Copilot:
The Atlas V rocket has been in service for over 20 years. It was first launched on August 21, 2002, successfully carrying the Eutelsat Hot Bird 6 broadcast satellite into orbit. Since then, it has played a crucial role in various missions, including interplanetary exploration. Notably, it has delivered scientific spacecraft to Mars, conducted research investigations to the Sun, the Moon, Jupiter, Asteroid Bennu, and even Pluto – all with remarkable precision! 🚀
For instance, Boeing’s Starliner spacecraft is set to make history as the first astronaut flight aboard an Atlas V rocket. This significant milestone demonstrates the rocket’s reliability and flexibility, making it a trusted choice for space missions12. As of now, there are 17 launches remaining for the Atlas V before its retirement.
gfp927z
2 months ago
>>> Spirit AeroSystems Whistleblower Dies After Sudden Infection
Time
by Koh Ewe
May 2, 2024
https://finance.yahoo.com/news/spirit-aerosystems-whistleblower-dies-sudden-104147528.html
Joshua Dean, a former quality auditor at Boeing supplier Spirit AeroSystems who had flagged safety concerns and alleged misconduct by the aircraft manufacturer, died Tuesday after a sudden and severe infection.
Dean is the second Boeing-linked whistleblower to have died in the last two months as the company has come under heightened scrutiny.
Dean, who was 45 and lived in Wichita, Kan., was in good health before he began to experience trouble breathing about two weeks ago and went to a hospital, according to the Seattle Times, which first reported on his death. Dean’s deterioration from that point, his aunt told the newspaper, was “brutal” and “heartbreaking.”
According to a series of public social media posts by Dean’s family, by April 21, he was in “very critical condition.” Dean tested positive for influenza B and MRSA, a difficult-to-treat bacterial infection, and developed pneumonia. He was intubated and put on dialysis as well as airlifted to another hospital to be put on an ECMO machine, a form of cardiac and respiratory life support. A CT scan showed that he had also suffered a stroke. Doctors were considering amputating his hands and feet, which had turned black from lack of oxygen.
“He is in the worst condition I have ever known or heard of. Even the hospital agrees,” Dean’s sister-in-law Kristen Dean posted on Facebook on Saturday, April 27. On Sunday night, Dean’s family posted that he was “giving up his fight” and “refusing to let them do any life saving procedures,” though his mother said she “told the doctor he doesn't know what he wants, I’m sure he wants to live, he’s afraid, scared and depressed.” According to Dean’s mother, the doctor agreed and performed a bronchoscopy, a surgical procedure to investigate the lungs and airways. Dean’s family announced that he had passed on Tuesday morning.
“His absence will be deeply felt,” his aunt posted on Facebook.
“Josh’s passing is a loss to the aviation community and the flying public,” Brian Knowles, a lawyer who represented Dean as well as the other whistleblower, John Barnett, who died in March, tells TIME. “He possessed tremendous courage to stand up for what he felt was true and right and raised quality and safety issues.”
Spirit AeroSystems, a company that was spun out of Boeing in 2005 and currently faces financial woes and an uncertain future, did not respond immediately to TIME’s request for comment but said in a statement cited by other media outlets: “Our thoughts are with Josh Dean’s family. This sudden loss is stunning news here and for his loved ones.”
Dean, who worked at Spirit since 2019 though was briefly laid off during the pandemic before returning in 2021, first raised concerns about improperly drilled bulkhead holes on some 737 Max planes at Spirit’s plant in Wichita in October 2022, according to a shareholder lawsuit that accused Spirit of concealing its production issues.
While Dean had reported the problem to several managers, the complaint alleged, the company hid it from investors for months until it became public knowledge in August 2023, when Boeing and Spirit announced a delay in plane deliveries due to the defect. According to testimonies from employees at Spirit, including Dean, workers had been instructed or pressured by supervisors to downplay the defects they found.
“It is known at Spirit that if you make too much noise and cause too much trouble, you will be moved,” Dean told the Wall Street Journal in January. “It doesn’t mean you completely disregard stuff, but they don’t want you to find everything and write it up.”
Dean was fired by Spirit in April 2023, ostensibly over a separate issue he failed to identify as an internal inspector. Months later, he filed a complaint to the Federal Aviation Administration, alleging that he was made a scapegoat while Spirit did nothing to inform regulators and the public of the concerns he had flagged.
After a high-profile incident in January in which a plug door on a Boeing 737 MAX 9 blew off during an Alaska Airlines flight, Dean’s former colleague Lance Thompson publicly backed Dean’s claims to the Seattle Times, saying that production deadlines were prioritized over safety at Spirit’s Wichita plant and that managers encouraged workers to hide defects. An audit by the FAA into Boeing and Spirit found in March that both companies failed to comply with quality-control requirements.
Dean had filed a complaint with the Department of Labor in November alleging wrongful employment termination by Spirit, a case that remained pending at the time of his death. “I think they were sending out a message to anybody else,” Dean told NPR in February: “If you are too loud, we will silence you.”
Dean’s death comes less than two months after the death of Barnett, another whistleblower who had spent years warning about lax safety standards at Boeing. Barnett was found in his truck with what authorities described as an apparent “self-inflicted gunshot wound,” in Charleston, S.C., on March 9, amid depositions he was giving related to a similar alleged retaliation dispute with Boeing. An investigation remains ongoing.
When asked about his two clients’ recent deaths, which have sparked conspiracy theories on social media, Knowles told TIME: “I do not want to speculate, and I would like to see the evidence from the investigating authorities.” But, he adds, “what society does not need is people in fear to speak up.”
Agoura Guy
2 months ago
A SECOND BOEING WHISTLEBLOWER IS ***DEAD***!!!!!!!!
WELL WELL WELL..........
HOW ABOUT THAT!!!!!!!!!!!!
Another whistleblower connected to Boeing has tragically passed away.
Joshua Dean, a former quality auditor at Boeing supplier Spirit AeroSystems, died early Tuesday morning after battling a sudden, rapid infection, the Seattle Times reported.
His death comes less than two months after the death of John Barnett, another whistleblower, under mysterious circumstances.
Joshua Dean, known affectionately as Josh, was a prominent figure in raising alarms over alleged safety issues within Boeing’s 737 MAX production line.
According to reports by the Seattle Times, Dean succumbed to a fast-spreading infection that led to multiple complications, ending his life at the age of 45. Dean, a resident of Wichita, Kansas—where Spirit AeroSystems is based—was previously in good health and known for his healthy lifestyle.
DiscoverGold
2 months ago
Boeing Stock Is Slipping. A Bull Bails Because the Turnaround Will Take Time
By: Barron's | April 30, 2024
Boeing stock caught a downgrade Tuesday. It will take a while to fix the commercial-airplane giant.
Argus analyst John Eade downgraded shares to Hold from Buy, and removed a $240 price target.
The challenges Boeing faces related to the 737 MAX, production quality, management succession, and an aerospace supply-chain struggling to ramp production will last "multiple quarters into the future" he writes. As a result, Eade is moving his rating to the sidelines.
Boeing stock is down 0.8% in premarket trading at $172.30, while S&P 500 and Nasdaq Composite futures were off about 0.1%.
Shares might not be affected by the downgrade to a greater extent because of the starting point. Coming into Tuesday's trading, Boeing stock was off about 33% year to date. Most of that drop came after an emergency door plug blew out of a 737 MAX 9 jet operated by Alaska Air Group on Jan. 5. The incident has led to slower production and more oversight by aviation regulators.
Deutsche Bank analyst Scott Deuschle tracked 19 Boeing jet deliveries from the start of April through the 28th. April is shaping up to be a slow month. Boeing delivered 83 jets in the first quarter, an average of almost 28 a month.
Slower production isn't a surprise at this point. Boeing is working to improve production quality.
Deuschle rates Boeing stock at Buy with a $225 price target. Overall, about 65% of analysts covering Boeing stock rate shares Buy, according to FactSet. That's similar to the Buy-rating ratio a year ago. The average Buy-rating ratio for shares in the S&P 500 is about 55%.
The average analyst price target for Boeing stock is about $222. A year ago, the target was about $238.
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2 months ago
Boeing taps debt market to raise $10 billion, sources say
By: Reuters | April 29, 2024
Boeing on Monday tapped debt markets to raise $10 billion, after the U.S. planemaker burned $3.93 billion in free cash during the first quarter following slowing production of its best-selling jet, sources familiar with the matter said.
Boeing's credit rating hovered above "junk" status last week after new action from rating agencies as the planemaker tries to recover from a crisis that began in January after a midair blowout of a cabin panel door plug on a nearly new 737 MAX 9.
Investors and analysts have said that Boeing could tap bond markets to get ahead of more than $12 billion in combined debt coming due in 2025 and 2026.
Credit rating agencies on Monday both assigned ratings nearing junk to Boeing's new senior unsecured notes, with S&P assigning a BBB- rating and Moody's assigning a Baa3 rating.
Moody's said the rating reflects Boeing's still-strong business profile, which continues to mitigate ongoing weak performance in commercial aircraft, although headwinds surrounding the division could persist through 2026.
Boeing will use the bond proceeds to increase its liquidity ahead of maturities on its existing debt load, including $4.3 billion in 2025, S&P wrote on Monday.
"It looks like it will go well," said one of the sources, who was looking at buying the bonds, adding that he was told it was eight times oversubscribed.
The deal's bookrunners leading the bond sale include Bank of America, Citi, JPMorgan and Wells Fargo, according to the deal's term sheet.
Boeing, whose shares rose 3.4%, is pricing bonds that have maturities ranging from three to 40 years, according to the term sheet. The bonds were set to price with a premium of 10-15 basis points to Boeing's outstanding bonds after, as strong demand during the sales period allowed Boeing to reduce the amount of concession offered, one banking source said.
The sharp tightening of spreads is reflective of overwhelming demand for the bonds, with order books earlier in the day said to have reached over $70 billion, two bank syndicate sources said.
Boeing declined to comment, but pointed to remarks from Chief Financial Officer Brian West during the company's earnings last week in which he said the company was committed to managing its balance sheet in a prudent manner, with the goal of prioritizing its investment-grade rating and helping the factory and supply chain to stabilize.
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2 months ago
Fitch downgrades Boeing's outlook to 'negative' on production, cashflow challenges
By: Reuters | April 26, 2024
Fitch Ratings downgraded outlook on Boeing BA to "negative" from "stable" on Friday, amid a fallout from safety crisis impacting the U.S. planemaker's production and cashflow.
The ratings agency, which reaffirmed its "BBB-" long-term issuer default rating, said it could stabilize the outlook if Boeing liquidates over 100 of its pre-2023 built 737 MAX and half of its 787 inventories by early 2025, along with increasing production of its MAX jets towards 38 per month.
Fitch's downgrade follows similar moves by S&P and Moody's earlier in the week on its bumpy cashflow.
Boeing has been under heavy regulatory scrutiny and lowered production of its 787 widebody jets, along with 737 MAX, after the cabin panel blew off an Alaska Airlines-operated ALK 737 MAX 9 flight mid-air, forcing an emergency landing.
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