The new report cites a person familiar with a recent discussion between Boeing’s board and executives at its headquarters in Arlington, Virginia. The meeting centered around potential asset sales, as executives and board members combed through internal reports on the state of each of the planemaker’s units.

Just weeks ago, Boeing CEO Kelly Ortberg told employees, “We need to be clear-eyed about the work we face,” adding, “We also need to focus our resources on performing and innovating in the areas that are core to who we are.”

Ortberg replaced Dave Calhoun as the president and CEO of Boeing on August 8. He is expected to comment publicly for the first time as CEO on Wednesday, following the International Association of Machinists and Aerospace Workers’ vote on the new labor contract. The company estimated the strike to cost $1 billion. It warned of a $6 billion quarterly loss for the period ending September 30.

On Tuesday, just days after Boeing announced plans to cut 10% of its workforce due to intensifying financial pressure, such as dwindling cash reserves and mounting risk of a credit downgrade, as well as prolonged strike, the beleaguered planemaker filed a $25 billion shelf registration.

“This universal shelf registration provides flexibility for the company to seek a variety of capital options as needed to support the company’s balance sheet over a three-year period,” Boeing wrote in the filing.

Separately, Boeing entered into a $10 billion “supplemental credit agreement” with a consortium of lenders. It noted that the credit facility provides “additional short-term access to liquidity as we navigate through a challenging environment,” adding that it has not drawn down on this facility or its existing credit revolver.

Boeing has already considered selling its rocket-launching joint venture, United Launch Alliance, with Lockheed Martin to Sierra Space for $2-$3 billion. Also, Boeing’s space division is in crisis following the malfunctioning of the Starliner spacecraft.

Separately, Boeing’s competitor, Airbus, laid off 2,500 jobs in its space division, as Elon Musk’s SpaceX dominates rocket launches and leads the space race in this solar system.

Boeing’s obsession (Wall Street’s obsession) with DEI, climate, and gender justice ultimately dealt the fatal blow. It’s time to refocus on the fundamentals, like building planes that actually stay in the sky. Is that a hard ask, Boeing?

In a memo to employees, CEO Kelly Ortberg noted that the reductions will include executives, managers and employees, warning that:

“Our business is in a difficult position, and it is hard to overstate the challenges we face together.”

Boeing ended 2023 with 171,000 employees.

The company said it expects to report third quarter revenue of $17.8 billion, and a loss per share of $9.97, according to preliminary figures.

The company unveiled the measures and the earnings figures as it seeks to get its negotiations with labor unions back on track.

Boeing has made two offers for higher wages, both of which were turned down by workers.

About 33,000 employees at its main Seattle-area facilities have been on strike for a month now, devastating production and draining Boeing’s reserves.

The latest talks collapsed earlier this week, with no clear path when and how they might resume.

Boeing shares tumbled after hours, erasing the day’s gains…

Ortberg also said the company has notified customers that the first deliveries of the 777X are now expected in 2026, citing the ongoing work stoppage and flight test pause.

Read the full press release below:

“While our business is facing near-term challenges, we are making important strategic decisions for our future and have a clear view on the work we must do to restore our company,” said Kelly Ortberg, Boeing president and chief executive officer.

“These decisive actions, along with key structural changes to our business, are necessary to remain competitive over the long term. We are also focusing on areas that are critical to our future and will ensure we have the balance sheet necessary to invest, support our people and deliver for our customers.”

Commercial Airplanes expects to recognize pre-tax earnings charges of $3.0 billion on the 777X and 767 programs. The company now anticipates first delivery of the 777-9 in 2026 and the 777-8 freighter in 2028, resulting in a pre-tax earnings charge of $2.6 billion. This schedule and resulting financial impact are based on an updated assessment of the certification timelines to address the delays in flight testing of the 777-9, as well as anticipated delays associated with the IAM work stoppage. Commercial Airplanes also plans to conclude production of the 767 freighter and recognize a $0.4 billion pre-tax charge on the program, which also reflects impacts from the IAM work stoppage. Beginning in 2027, the company will solely produce 767-2C aircraft in support of the KC-46A Tanker program. Commercial Airplanes expects to report third quarter revenue of $7.4 billion and operating margin of (54.0) percent.

Defense, Space & Security expects to recognize pre-tax earnings charges of $2.0 billion on the T-7A, KC-46A, Commercial Crew, and MQ-25 programs. The T-7A program pre-tax charge of $0.9 billion was driven by higher estimated costs on production contracts in 2026 and beyond. The KC-46A program pre-tax charge of $0.7 billion reflects the decision to conclude production on the 767 freighter and impacts of the IAM work stoppage. Results also include unfavorable performance on other programs. Defense, Space & Security expects to report third quarter revenue $5.5 billion and operating margin of (43.1) percent.

Finally, a quick thought for all the other corporations out there…

*BOEING PRELIM 3Q REV. $17.8B, EST. $18.58B
*BOEING EXPECTS TO RECOGNIZE ABOUT $5 BILLION EARNINGS CHARGES

going woke was not such a great idea https://t.co/rF33WdGSgz pic.twitter.com/cwmw6izvsH

— zerohedge (@zerohedge) October 11, 2024

Live by the capitalist sword, DEI by the socialist sword…

The U.S. National Transportation Safety Board (NTSB)’s chairwoman, Jennifer Homendy, said that 271 impacted parts could be installed on aircraft in service operated by at least 40 foreign air carriers. Sixteen of the impacted parts may still be installed on U.S.-registered aircraft and up to 75 such parts may have been used in aftermarket installation, she wrote in a Sept. 30 letter to the Federal Aviation Administration (FAA).

On Sept. 27, the NTSB issued an “urgent” safety warning for some Boeing 737s, including the Max variant, because there is a “potential for a jammed or restricted rudder control system on some 737 airplanes.” The rudder that the NTSB is referencing controls a plane’s side to side movement of the nose of the aircraft.

Homendy’s Monday letter, making reference to last week’s warning, said that her agency is concerned “of the possibility that other airlines are unaware of the presence of these actuators on their 737 airplanes.” Her letter did not identify the foreign airlines or the countries where they operate.

Concerns Over FAA

The NTSB director further wrote that she believes the “FAA has been downplaying the urgency of this issue, maintaining that the units are no longer in service,” without elaborating.

“I remain concerned that the FAA, as a whole, did not take this issue more seriously until we issued our urgent safety recommendation report, despite the risk of loss of control of an aircraft or departure from the runway occurring due to a jammed or restricted rudder control system, caused by a defect in certain rollout guidance actuators,” the letter stated.

The FAA, Homnedy added, apparently has not “initiated urgent actions to address the risk of jammed rudder controls in the 6 months since our preliminary report on this incident was issued.”

“The case for urgent action is even greater since, after we opened our investigation, the FAA became aware of two similar incidents that had occurred with foreign operators in 2019,” the letter noted.

Concerns Over Boeing

Homendy was critical of Boeing for what she said was a failure to inform United Airlines that faulty actuators were installed in the 737 planes that were delivered to the carrier.

“We are concerned of the possibility that other airlines are unaware of the presence of these actuators on their 737 airplanes,” her letter stated. “Not making operators fully aware of the installed systems and equipment on the airplanes delivered to them is unacceptable and cannot continue to be tolerated,” she added.

The Epoch Times has contacted both Boeing and the FAA for comment on the letter. Boeing has not publicly commented on the urgent safety warning or Homnedy’s letter to the FAA.

What the Urgent Warning Said

The NTSB said last week it is currently investigating an incident in February in which the rudder pedals of a Boeing 737 Max 8 that was operated by United Airlines became “stuck” in a “neutral position” during the plane’s landing rollout at the Newark International Airport in New Jersey.

The plane wasn’t damaged, and no injuries were reported in association with the incident, the agency said.

“NTSB investigators tested one of the rudder control components from the incident airplane, a rollout guidance actuator, at the component’s manufacturer, Collins Aerospace,” the NTSB warning stated. “When the incident actuator and an identical unit from another airplane were tested in a cold environment, the actuators’ function was significantly compromised.”

Investigators with the safety agency discovered there may have been moisture in the actuators of the plane, “which failed testing.”

Collins Aerospace, the maker of the rudder control components used by the the plane “subsequently determined that a sealed bearing was incorrectly assembled during production of the actuators, leaving the unsealed side more susceptible to moisture that can freeze and limit rudder system movement,” the agency said.

Collins had also told Boeing that more than 353 actuators produced by the company were delivered to Boeing since February 2017 that were impacted by the issue, according to the warning.

Another Blow to Boeing

This year, Boeing aircraft have been involved in several high-profile incidents, including when a Boeing 737 Max 9 passenger jet lost a rear door plug during a January flight. Subsequently, the FAA ordered the grounding of similar Boeing 737 MAX 9 jets for weeks.

In July, Boeing agreed to plead guilty to a criminal fraud conspiracy charge and pay at least $243.6 million after breaching a 2021 Justice Department agreement.

The planemaker also agreed to spend at least $455 million to boost safety and compliance programs, overseen by an independent monitor for three years.

Last week, FAA head Michael Whitaker told a House panel that safety culture improvements at Boeing may take three to five years to complete.

“It is not a six-month program; it is a three-year to five-year program,” FAA Administrator Mike Whitaker said at a two-hour hearing, adding he has spoken to Boeing CEO Kelly Ortberg and the company’s board of directors about the need for safety culture reforms.

The agency administration said Boeing has made significant improvement in the short term. “On culture it is a long-term project … there is progress but they are not where they need to be,” he said.

Meanwhile, tens of thousands of Boeing machinists in Washington state and Oregon are still on strike after walking off the job on Sept. 13 in the union’s first strike since 2008, halting production of airplane models including the 737 Max.

The union is seeking a 40 percent pay rise and the restoration of a defined-benefit pension that was taken away in the contract a decade ago.

On Sept. 27, the International Association of Machinists and Aerospace Workers said that its pay deal talks with Boeing had broken off and that there were no further dates scheduled for negotiations at this time.

Reuters contributed to this report.

The astronauts, who have been aboard the ISS since early June, were initially set to return after an eight-day mission. However, technical issues with the Starliner, including thruster malfunctions and helium leaks, have led NASA to extend their stay until February next year, when a SpaceX vehicle will facilitate their return.

During a briefing, Nelson emphasized NASA’s commitment to safety, stating, “Our core value is safety, and it is our north star.” This decision follows weeks of deliberation between NASA and Boeing, aiming to assess the risks associated with the Starliner’s return capabilities.

Boeing, which has invested over a decade and faced numerous challenges with the Starliner, including significant financial losses, expressed disappointment through its vice president Mark Nappi. Despite the setback, Nappi confirmed Boeing’s readiness to support NASA’s revised plan, prioritizing crew and spacecraft safety.

The extended mission for Wilmore and Williams, both seasoned astronauts, now includes them staying aboard the ISS for nearly eight months, integrating with a new crew set to arrive via SpaceX in September. NASA has adjusted supply missions to accommodate this longer stay, ensuring no shortages, as humorously noted by NASA’s Dana Weigel, “No one has had to go on a diet or calorie restrictions.”

This decision not only impacts the immediate mission but also raises questions about the future of Boeing’s Starliner program, which was intended to provide NASA with a second, independent means of crew transport to the ISS, reducing reliance on Russian spacecraft post the retirement of the Space Shuttle.

SpaceX, under the leadership of Elon Musk, has now solidified its role as a pivotal partner for NASA, handling not just crew rotations but also pivotal missions like lunar landings and satellite launches. Gwynne Shotwell, SpaceX’s president, affirmed their readiness to support NASA’s needs.

The shift underscores the competitive and cooperative nature of space exploration, where safety and reliability dictate the pace and partnerships of space missions. As NASA and Boeing continue to troubleshoot the Starliner’s issues, the space community watches closely, understanding the implications for future manned spaceflight missions.

Article generated from corporate media reports.

As part of the deal, Boeing will pay a $243.6 million fine. Additionally, an independent compliance monitor will oversee Boeing’s adherence to compliance standards for three years during a probationary period. The company must also invest at least $455 million in compliance and safety programs, according to a court filing by U.S. prosecutors late Sunday. This plea deal is pending approval by a federal judge.

The agreement also stipulates that Boeing’s board of directors must meet with the families of the crash victims.

Faced with the prospect of a trial or accepting the guilty plea and its terms, Boeing opted for the plea deal just as it was attempting to recover from its manufacturing and safety crises, appoint a new CEO, and acquire its fuselage maker, Spirit AeroSystems.

The guilty plea will label Boeing a felon, potentially complicating its ability to sell products to the U.S. government. Approximately 32% of Boeing’s nearly $78 billion in revenue last year came from its defense, space, and security unit.

“We can confirm that we have reached an agreement in principle on terms of a resolution with the Justice Department, subject to the memorialization and approval of specific terms,” Boeing said in a statement.

In May, the Justice Department declared that Boeing had violated the 2021 agreement. Under that deferred prosecution agreement, Boeing had agreed to pay $2.5 billion, including an initial $243.6 million criminal fine, compensation to airlines, and a $500 million fund for victims’ families.

The 2021 settlement was set to expire two days after a door panel blew out of a nearly new 737 Max 9 operated by Alaska Airlines on January 5. Although there were no serious injuries, the incident sparked a new safety crisis for Boeing.

The U.S. accused Boeing of conspiracy to defraud the government by misleading regulators about the inclusion of a flight-control system on the Max that was later implicated in two crashes—a Lion Air flight in October 2018 and an Ethiopian Airlines flight in March 2019. All 346 people on board those flights were killed.

U.S. prosecutors informed victims’ families on June 30 that they planned to seek a guilty plea from Boeing, a move family attorneys criticized as “a sweetheart deal.”

Paul Cassell, a lawyer for the victims’ families, stated he plans to ask the federal judge to reject the deal and “simply set the matter for a public trial, so that all the facts surrounding the case will be aired in a fair and open forum before a jury.”

Article generated from corporate media reports.

“The decision was made by the pilot in command immediately after takeoff, considering engine problems that required further examination after sparks of fire were observed in one of the engines,” Garuda Indonesia president director Irfan Setiaputra wrote in a statement obtained by the local media outlet The Jakarta Post. 

Garuda-1105 flight to Madinah, a city in western Saudi Arabia, was departing from the Indonesian city of Makassar on Wednesday when, as soon as the plane achieved rotation speed and lifted off the runway, a giant fireball erupted from one of the plane’s engines.

Garuda Indonesia 747-412 returns safely to Makassar Airport in Indonesia after an engine failure during takeoff. pic.twitter.com/VibKqCQosc

— Breaking Aviation News & Videos (@aviationbrk) May 15, 2024

Here’s what happened last week with Boeing mishaps:

May 8:

• Boeing 767 Cargo Plane Crash-Landed In Turkey

May 9:

• Boeing 737 Crashes After Failed Takeoff At African Airport

May 10: 

• United Airlines Boeing 737 Makes Emergency Return To Japanese Airport After Wing Flap “Irregularity”

If you want to avoid flying in Boeing’s “death traps,” use this plane ticket booking search feature for Airbus “only” before your next trip.

A Boeing engineer turned whistleblower, Sam Salehpour, reiterated his claims that the 787 Dreamliner is unsafe due to assembly flaws. He expressed concerns about tiny nonconforming gaps found in multiple planes during fuselage assembly, which could lead to catastrophic outcomes. Salehpour said he would not put his family on a 787 Dreamliner right now. He is set to testify before a U.S. Senate subcommittee.

He doubled down on his claims Tuesday, saying that the plane could fall apart and “drop to the ground” midflight unless the alleged safety problems are addressed.

Boeing has faced increased scrutiny following a midflight blowout of a door panel from a 737 Max 9 during a flight in January. The company’s CEO, Dave Calhoun, has announced he will step down. Boeing has defended the structural integrity of the 787, stating that it was stress-tested for 165,000 cycles without failure. The company also said it had inspected 689 of the 787s in service and found no evidence of fatigue.

In a statement, Boeing said, “These claims about the structural integrity of the 787 are inaccurate. The issues raised have been subject to rigorous engineering examination under FAA oversight.”

Despite Boeing’s assurances, Salehpour remains firm in his claims and suggests that production of the 787 should be halted until the alleged problems are addressed. He has flagged the issue to the FAA, which is investigating his claims. Salehpour was transferred to work on the 777 line after raising concerns internally.

Salehpour’s attorney, Lisa Banks, has heard from additional whistleblowers at Boeing who have reported similar issues. Salehpour is confident in his allegations, citing Boeing’s own data and his experience as a quality engineer.

Sound off about this article on The Liberty Daily Substack.

Article generated from corporate media reports.

From door plugs ripping off Boeing jets to tires falling off, runway excursions, engine fires, hydraulic leaks, and pilot seat malfunctions, confidence in the planemaker has collapsed.

Just this week, The New York Times released a shocking report of a Boeing engineer turned whistleblower who revealed that sections of the 787 Dreamliner fuselage were improperly fastened together, posing structural integrity risks.

Next Wednesday, Senator Richard Blumenthal, a Democrat of Connecticut and the chairman of the Senate Homeland Security and Governmental Affairs Committee’s investigations subcommittee, will hold a hearing featuring the whistleblower to address concerns about the 787 Dreamliner.

The Boeing crisis recently led CEO Dave Calhoun to announce he will be stepping down later this year.

A crisis in confidence has spread to Boeing shares, down 61% since the peak of $440 in early 2019, around the time the first Boeing 737 Max crashed. In total, two Max jets crashed (March 2019 and December 2020), killing 346 people. The cause, as readers may recall, was a faulty flight stabilizing device called the “Maneuvering Characteristics Augmentation System.”

Since early Covid, shares have been bouncing between $95 and $269. Since the door plug ripped off the Alaskan Airlines 737 Max in early January, shares have slid from $264 to $170, or about a 35% drop in 3.5 months.

Bloomberg notes Boeing is the “second-worst performer on the S&P 500 Index” and is set to close down for the tenth consecutive session, putting it on track for its longest losing streak since November 2018.

The recent announcement that it delivered the lowest number of jets in the first quarter since mid-2021 added more gloom to the planemaker’s outlook. The 787 Dreamliner debacle could complicate things even more while Airbus deliveries soar and have recently been crowned the world’s aviation industry king.

“Boeing’s first-quarter delivery announcement confirmed what the market has come to accept over the past two to three months, which is that the pace of activity at its Commercial Airplanes segment is slow,” JPMorgan analyst Seth Seifman told clients in a note on Thursday.

Seifman said, “The path forward on production is not very clear, and while demand should allow for significant growth over time, investors should keep nearer-term expectations in check.” He also lowered the price target on the company but said his buy-equivalent rating would remain.

According to Bloomberg data, the average price target set by Wall Street analysts on Boeing dropped from about $275 in early January to about $234 this week. Also, the percentage of “buy” recommendations with analysts has declined.

Goldman has a buy recommendation with a 12-month $257 price target.

At what point is Boeing a buy again?

Flight 345, which had taken off from Dallas-Fort Worth, Texas, landed at Los Angeles International Airport at around 8:45 p.m. without any incident, according to American Airlines. The plane was able to taxi to the gate under its own power, and passengers disembarked as usual.

There have been at least six reported incidents involving Boeing planes in the past week. It was reported that a blown tire might have caused the emergency landing, but American Airlines did not confirm this.

No injuries were reported among the crew and passengers following the emergency landing. The aircraft in question is a 23-year-old Boeing 777, according to Airfleets Aviation.

Several unrelated issues have been reported with Boeing planes recently. On Monday, a United Airlines flight traveling from Sydney to San Francisco had to turn around due to a fuel leak.

Hours earlier, a Boeing 787 Dreamliner flying from Sydney to Auckland experienced a technical issue that resulted in injuries to 50 passengers. Last week, a United Airlines flight from San Francisco to Osaka, Japan, made an emergency landing in Los Angeles after it lost a tire while in the air.

Bloomberg revealed that his modified Boeing 737 experienced a critical issue following the detection of an oxygen leak, rendering the aircraft unsafe to fly.

Earlier, during a Davos panel, Blinken discussed the Middle East, emphasizing the need for stability and calling the situation an “inflection point” that demands difficult decisions. He expressed confidence in finding a resolution to end the Israel-Hamas conflict.

“We’re in the midst of what is human tragedy in so many ways in the Middle East right now — for the Israelis and Palestinians alike,” he said.

Blinken reiterated the necessity of a “pathway to a Palestinian state” and stressed that Israel would not “get genuine security absent that.” He acknowledged the challenges in reaching a resolution and the need for a mindset open to that perspective.

Ultimately, Blinken said, Israelis must decide on their leadership and direction, and whether they can “seize the opportunity that we believe is there.”

Before attending the Davos event, Blinken spent a week in the Middle East attempting to ease regional tensions.

Article generated by Discern Reporter from corporate media reports.