Alison Gain’s Post

Boeing’s company's legacy is built on engineering excellence and a commitment to advancing aerospace technology. The path of transformation ahead may require tough adjustments, but these challenges present an opportunity for Boeing to sharpen its focus, reinforce its safety standards, and reimagine its future. CEO, Kelly Ortberg's every action appears focused on stopping the negative loop of uncertainty that has existed at Boeing of late. His team provided an unvarnished view of what must change, absorbed by challenges ranging from huge debt to serious performance lapses that will need time to fix before it can consider developing a new aircraft. While Boeing is a leading name in the aerospace industry, one of the critical issues within the company is rooted in outdated management practices. Management seems disconnected from the ground realities, not actively addressing problems faced at the operational level. The employees at the bottom of the hierarchy, who are closest to the day-to-day challenges and have valuable insights, are often overlooked or not trusted. These workers hold the potential to bring about meaningful change and innovation, but without empowering and trusting them, the company risks stagnation. Ortberg laid out a plan that includes rebuilding a culture where management is close to the action on the factory floors to prevent “the festering of issues.” He’s also brought back detailed business reviews intended to unearth operations breakdowns before they morph into crises. That’s a shift in tone and strategy from the laser focus on shareholder returns and discipline around costs espoused by other Boeing’s leaders over the past 20 years. The company recently put in place a refinancing package that could reach $25 billion over the next three years, as Boeing seeks to prevent its credit rating from falling into junk territory. A future Boeing will be “a leaner, more focused organization” as he sets priorities on what the company can achieve. #Aviation #Turnaround Disclosure: This article is for informational purposes only and should not be construed as legal, regulatory, tax, accounting, or investment advice. It expresses the views of the author as of the date indicated and such views are subject to change without notice. Quaestor Consulting Group ("QCG") has no duty or obligation to update the information contained herein. Certain information contained herein is based on or derived from information provided by independent third-party sources. QCG believes that the sources from which such information has been obtained are reliable; however, it has not independently verified the accuracy or completeness of such information or the assumptions on which such information is based. QCG makes no representation, and it should not be assumed that past investment performance is an indication of future results. Moreover, wherever there is the potential for profit there is also the possibility of loss.

Boeing’s just-announced search for a new leader looms as the premier succession drama in modern corporate history. Boeing desperately needs a superstar featuring a totally different profile from its last several pilots. That’s the only way it can recast its production processes and procedures to regain its old record of safety excellence following the two fatal crashes in 2018 and 2019, and the notorious door-panel blowout over Portland in January. That Boeing picks the right CEO is of paramount importance to the future of both the global aerospace industry, and the U.S. economy given the planemaker’s role as America’s largest exporter. The company’s production stall has already worsened an airplane shortage that’s forcing customers worldwide to slash flights and raise prices. That Boeing lands smoothly is also critical to the expansion of low- and ultralow-cost carriers essential to keeping fares in check. Read more: https://lnkd.in/e54r7jCg

🇮🇪✈️✍️⚙️🇺🇸 Airbus may consider buying some Spirit AeroSystems assets if Boeing were to buy the #aircraft parts supplier, according to the European airplane maker's #ChiefFinancialOfficer. The comments after #Boeing and #Airbus earlier this month confirmed that they were in preliminary #acquisition talks, following several media reports about a possible deal earlier in the day. Earlier, #Spirit has held exploratory talks with Airbus about selling its #Belfast, Northern Ireland plant. Boeing is reportedly not keen on owning Spirit's Airbus business, which includes the factory. In October 2019, #AircraftManufacturer BOMBARDIER's Northern Ireland operations was been sold to #US firm Spirit AeroSystems. #Bombardier sold its #AerostructuresBusiness, which included this Belfast plant, to Spirit for more than $700m in cash and debt. Airbus CFO #ThomasToepfer told in the interview on Friday, "in light of the situation today where Boeing has potentially the interest to take over Spirit, we could also imagine that some of the #WorkPackages could find their way to Airbus and we take them over, but that quite frankly is a discussion that's in the very very early stages and it's way too early to comment on that." Spirit manufactures the #wings for the Airbus #A220 aircraft and also a section for the #A350 model, Toepfer explained. While Airbus's options to stop the sale of Spirit to Boeing are limited, the plane manufacturer holds considerable lobbying power and may explore avenues to influence the outcome of negotiations. Spirit's backlog, including projects for both Airbus and Boeing, stands at approximately $49 billion, indicating the magnitude of its operations across various commercial platforms.

in the Airbus vs Boeing competition, another scary metric is that the net cash position (cash and marketable securities minus debt) of Airbus is POSITIVE by around 8 Bio $ while Boeing's is NEGATIVE by about 40 Bio$. (this is a range because I cannot dig into their respective definitions and accounting standards)

# Only put off until tomorrow what you are willing to die having left undone ## Boeing's New CEO Moves to Seattle to Address Safety Crisis Boeing's \(\<a href= "https://lnkd.in/gtmRdr6h"\>BA\</a\>\) new CEO, Kelly Ortberg, has made a bold move by announcing his decision to be based in Seattle, bringing himself closer to the factory floor in order to directly tackle the ongoing safety crisis. This strategic decision comes after months of mounting pressure on Boeing to reconnect with its industrial roots, following incidents such as a door plug falling off a 737. With safety being of paramount importance, Ortberg's relocation clearly demonstrates his commitment to addressing the concerns head-on. By immersing himself within the heart of Boeing's operations, he aims to regain control of the situation and ensure that safety remains a top priority throughout the company. As investors, it is essential to monitor the actions of industry leaders like Boeing in order to make informed decisions. Investing in companies that prioritize safety and take proactive measures to address crises can help safeguard both your financial future and promote a sustainable, secure healthcare system. Take action now to avoid the Fear of Missing Out on potential growth opportunities within the healthcare sector. Consider allocating a portion of your Health Savings Account \(HSA\) towards investing in companies like Boeing, which are actively working towards enhancing safety standards. Empower yourself and your family by staying informed and capitalizing on the potential of healthcare investments. #hsa #investing #healthcare #health #family #wellness 💪📈💼🏥💙

Interesting article on the origins of the problems at Boeing, the limits of outsourcing, and even the consequences of losing focus on the core business.

Boeing's CEO announced his resignation today, alongside other leadership moves. Richard Aboulafia's been critical for the better part of a decade on a series of moves that he views as the "financialization" of a great American engineering company. He's highlighted a few things - but what popped to me is that aerospace companies face similar challenges to other industries, but on a vastly difference time scale / complexity. To the layperson, a planemaker might seem similar to an automaker. But are they actually? Automakers are well known for squeezing their suppliers to the brink of bankruptcy to get the best price. Can Boeing or Airbus do the same? Last year, Dave Calhoun announced Boeing wouldn't produce a new plane this decade. Putting aside whether that's the right strategic decision from a product perspective - how does it impact your workforce? The best young engineers want to work on new & engaging products - how will you compete to hire/retain them knowing they won't work on a new plane for at least a decade? If it's been more than a decade since your last new plane launch, where will your experienced engineers & project managers be? How will those lessons learned & knowledge transition to the next generation if they've transitioned, are retired, or near-retirement? If you were a fresh-faced 24-year old engineer working on the 787 (launched in 2009, assuming 10-year process), then you're 54 by the time 2030 comes around. Are you still with Boeing? How many of your peers are still around? The good news is that lead times are long & Boeing won't lack for customers any time soon. If they look back at the last decade and decide that mistakes were made, the Board & Management have ample runway to change course, and you can be sure that given Boeing's importance to national security there will be plenty of political will to support the turnaround. #strategy #aerospace #cfo

NEWS OF THE DAY! Boeing's Bold Move: Talks of Acquisition Propel Spirit AeroSystems (SPR) Shares 10% – What's Next for Aerospace Giants?   1.     Spirit AeroSystems (SPR) surged 10% due to reports of potential acquisition talks with Boeing (BA), its former owner. 2.     SPR hired bankers to explore options and held preliminary discussions with Boeing. 3.     Boeing declined 1.3% amidst the news. 4.     SPR is also considering selling its operations in Ireland, which manufacture parts for Airbus. 5.     There were talks of Airbus acquiring the A220 wings plant from SPR, but no deal seems imminent. 6.     SPR's market cap stands at $3.3 billion. 7.     The potential deal with Boeing follows SPR's recent 10% drop due to safety issues with Boeing's 737 Max jet. 8.     SPR manufactures fuselages for Boeing and Airbus. 9.     Boeing's CEO previously dismissed the idea of acquiring Spirit AeroSystems. 10. Both Boeing and Spirit AeroSystems have suspended their financial forecasts due to ongoing scrutiny and safety concerns. =>Please follow Finplate and stay updated with the latest #mergersandacquisitions news. Thanks in advance. To read the news in detail, click below: https://lnkd.in/gWn96jdU

In recent months, the civil aeronautic industry has been abuzz with discussions surrounding Boeing's financial struggles and quality performance issues, notably highlighted by the grounding of the 737 MAX series following two fatal accidents and the recent incident involving a blown-away door on a 737 Max 9 over Portland, Oregon. This scrutiny has led to widespread critique of Boeing within the industry, with figures like Emirates President and Chief Sir Tim Clark expressing strong opinions on the matter (link to the interesting article below). The financial challenges Boeing faces create an opportune moment for competitors like COMAC to enter the market, while also allowing Airbus to strengthen its leadership position. While much has been said about Boeing's situation in the news, I want to emphasize the broader lesson about the repercussions of short-sighted actions. As an engineer involved in reviewing and approving parts and designs, I've experienced firsthand the challenges of convincing stakeholders about the necessity of halting or replacing components, despite potential impacts on delivery dates or costs. Safety considerations often resonate strongly with most individuals, as nobody wants to fly on a plane with defective parts. However, the Boeing situation underscores why these impacts and costs are far less significant than the potential consequences of an accident. I'm fortunate to work in a company where safety is the top priority, with a strong track record in terms of quality and adherence to safety protocols. Being part of a system that prioritizes safety gives me immense pride and satisfaction. Have you encountered similar conflicts between safety, schedule, and financial pressures in your industry? How do you navigate such challenges? Let's continue the conversation. #AerospaceEngineering #SafetyFirst #QualityManagement #CollinsAerospace #Boeing https://lnkd.in/eZnkK_kc