Boeing defended the safety of its 787 Dreamliner plane at its South Carolina factory after a whistle-blower, Sam Salehpour, raised concerns about the jet's structural integrity. The company's top engineers stated that extensive tests and inspections showed no evidence of premature body failure, despite Salehpour's claims that sections of the fuselage were not properly fastened together. Salehpour is scheduled to testify before Congress, and the Federal Aviation Administration is investigating his allegations, adding to Boeing's ongoing scrutiny over manufacturing practices following previous incidents with the 737 Max.
U.S. airline bosses' revolt led to the ousting of Boeing's top leadership, including CEO Dave Calhoun, after a door plug blowout on an Alaska Airlines 737 MAX 9. The shakeup came after major U.S. customers demanded a boardroom meeting, expressing frustration at ongoing delays and safety concerns. Airlines are now calling for deeper changes, including selecting a manufacturing heavyweight as CEO, as they face prolonged uncertainty over jet supplies. The industry's intervention demonstrated fragile confidence in Boeing's safety and reliability, with experts noting that the carrier coup will be studied for years.
Despite recent incidents involving panels and tires falling off planes, flying remains statistically safe, with the last fatal crash of a U.S. airliner occurring 15 years ago. While there has been a spate of close calls and concerns about air safety, flying is still safer than driving. Boeing's reputation has been marred by manufacturing flaws and incidents, prompting increased oversight from the Federal Aviation Administration. Issues with flight controls, engines, and structural integrity are the most concerning, while routine incidents like cracked windshields pose minimal safety threats.
Brazil-based aircraft manufacturer Embraer reported a mixed fourth-quarter performance, with earnings of $1.05 per share, up from 12 cents per share the year prior, and revenue easing 0.8% to $1.975 billion, slightly missing FactSet's expectations. The company delivered 75 jets in Q4 and expects 2024 deliveries and revenue to increase. Morgan Stanley named Embraer its top pick in aerospace, citing the company's transition into a "harvest period" and its potential to challenge the duopoly of Boeing and Airbus. Embraer's stock, trading as ERJ, initially jumped but later fell 4% early Monday.
Boeing whistleblower John Barnett, who was testifying against the company, was found dead with a gunshot wound, but a family friend claims he had warned her that it wouldn't be suicide. His lawyers and family also doubt that he took his own life. Barnett's role in a high-profile case has raised concerns of foul play, and his family has requested that police investigations reflect those concerns. Boeing has been embroiled in scandal over safety and manufacturing processes, with recent incidents involving malfunctioning aircraft and questionable manufacturing practices.
Boeing's ongoing production, quality, and safety issues, including a recent mid-flight incident, could lead to more expensive airfares and weaker economic growth in the US. Delays in deliveries and reduced production of its 737 Max jets are expected to impact the availability of planes for travel and business, potentially pushing up airfares. The company's struggles may also benefit its rival, Airbus, as airlines consider alternative options. This could have significant effects on the US economy, including reduced exports and potential job impacts.
John Barnett, a former Boeing employee who blew the whistle on alleged safety problems at the company, has been found dead from an apparent "self-inflicted" wound. Barnett had been giving evidence in a whistleblower lawsuit against Boeing and had previously alleged that the company fitted planes with faulty parts. Boeing expressed condolences at the news of his death. The aircraft manufacturer has been under intense scrutiny over its safety record, with recent incidents including injuries on a Boeing aircraft en route to New Zealand and a criminal investigation into a mid-flight blowout of a Boeing 737 MAX.
United Airlines CEO expresses frustration with ongoing manufacturing problems at Boeing, stating that the airline will consider alternatives to purchasing the future, larger version of the Boeing 737 Max due to the grounding of its Max 9 jets and delays in certification for the Max 10. The CEO's comments come after United disclosed expected financial losses due to the Max 9 grounding, and he emphasized the need for Boeing to take "real action" to address its manufacturing challenges. This decision could impact United's growth plans, as the airline explores options beyond the Max 10, potentially involving Airbus as the only other global manufacturer of such large planes.
United Airlines CEO expresses disappointment in ongoing manufacturing problems at Boeing, leading to the grounding of its Boeing 737 Max 9 jets and potential consideration of alternatives to the Max 10, which is years behind schedule. The airline expects to lose money in the first quarter due to the grounding and delays, and may look at options beyond Boeing for future aircraft acquisitions.
Indian Prime Minister Narendra Modi announced at the inauguration of Boeing's engineering center in Bengaluru that it won't be long before Boeing designs and manufactures aircraft in India, emphasizing the need to build an aircraft manufacturing ecosystem in the country. The Boeing India Engineering & Technology Center (BIETC) in Bengaluru, the company's largest facility outside of the United States, will focus on research and development. Boeing has seen increased interest in its jets in India, with the country's aviation market growing rapidly, and recently received orders for 150 737 MAX jets from an Indian carrier.
Boeing stock received another upgrade, this time from RBC Capital, which raised its rating to outperform and set a 25% higher price target. This follows previous upgrades from Deutsche Bank and Goldman Sachs. Despite facing challenges throughout the year, including supply chain disruptions and production issues, Boeing's stock has rallied in November, gaining over 17%. Analysts believe the company is poised for growth in 2024, with strong demand expected in both the commercial and defense segments. The upgrades reflect a shift in sentiment towards Boeing stock and present a buying opportunity.
Joby Aviation, a prominent player in the field of electric vertical takeoff and landing aircraft, has announced plans to invest up to $500 million to build an aircraft production operation near Dayton International Airport in Ohio. The facility, expected to start operations in 2025, will have the capacity to deliver up to 500 aircraft per year and is projected to create around 2,000 jobs by 2028. The electric-propulsion aircraft, known as the "Joby Aircraft," will be capable of vertical takeoff and landing, with a top speed of 200 mph and a range of 100 miles. The project is seen as a significant economic development for Ohio and a boost to the emerging industry of flying cars.
