No. of Recommendations: 5
Recently released Boeing employee Emails suggest that inferior suppliers and relentless cost-cutting make the now overdue Boeing 777X jet vulnerable to the same sort of training and safety risks that resulted in the 737 Max debacle.

https://www.telegraph.co.uk/business/2020/01/18/staff-emails...

The London Telegraph has published an informative article on the current status of the now-overdue 777X, which was supposed to have been in the air by 2019. The most damaging revelations published by the Telegraph include the following quotes:

...before the first Max crash, one Boeing worker wrote: “Best part is we are re-starting this whole thing with the 777X with the same supplier and have signed up to an even more aggressive schedule.”

Another member of staff warns about a relentless cost focus, saying: “We put ourselves in this position by picking the lowest-cost supplier and signing up to impossible schedules. Why did the lowest ranking and most unproven supplier receive the contract? Solely based on the bottom dollar. Not just the Max but also the 777X! Supplier management drives all these decisions.”


https://www.telegraph.co.uk/business/2020/01/18/staff-emails...

It seems odd that the Legal Department, the Compliance Department, and/or the Human Resources Department at a company as large and technically sophisticated as Boeing would not have been clued-in to employee concerns about actual and suspected problems. Internal analysis of Emails by artificial intelligence could have notified relevant department managers of complaints put in writing by employees between one another as well as with their supervisors.

Proactive legal and compliance teams can run training seminars on a rotating basis educating employees on the appropriate process for reporting suspected safety or contractor issues. If the legal, compliance, and human resources staff aren't proactive in regard to training employees how to report concerns and raise questions one-on-one with supervisors and others in the chain-of-command, it can leave public companies vulnerable to apparent "smoking guns" planted by frustrated employees.

In such circumstances, the shareholders often end up paying for poor management and lack of supervision of employees, oversight of contractors, or performance of due diligence. Quality control objectives ought to include how to construct appropriate and ethical internal Email communications in circumstances where pure conjecture can lead to unnecessary or even undeserved liability.

Shareholders don't deserve to be punished for lax management or lazy supervision of employees. Neither do customers deserve to be exposed to potential harm when good internal controls and processes can catch an issue when it can be addressed in the ordinary course of business - instead of in the wake of a fatal incident.

=:-o
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No. of Recommendations: 4
notehound writes,

Shareholders don't deserve to be punished for lax management or lazy supervision of employees. Neither do customers deserve to be exposed to potential harm when good internal controls and processes can catch an issue when it can be addressed in the ordinary course of business - instead of in the wake of a fatal incident.

</snip>


Airline customers and passengers will just need to be aware that Boeing is an inferior product until such time that Jack Welch-style management practices are purged from the company.

One of the reasons that the Corporate Headquarters was moved to Chicago was that the senior executive team might be too influenced by engineering experts in Seattle. It's the Jack Welch way.

intercst
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No. of Recommendations: 8
Boeing 777X jet vulnerable to the same sort of training and safety risks that resulted in the 737 Max debacle.

The X is being created in the same corporate culture as the Max.

Internal analysis of Emails by artificial intelligence could have notified relevant department managers of complaints put in writing by employees between one another as well as with their supervisors.

In my experience, such an AI system to flag such complaints from employees would not be used to address the issues the employees are complaining about. The system would be used to identify employees who "are not team players" and "refuse to get with the program", so they can be reassigned out of the program or pushed out of the company.

Steve
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No. of Recommendations: 1
Airline customers and passengers will just need to be aware that Boeing is an inferior product until such time that Jack Welch-style management practices are purged from the company.

Or until such time the Boeing Company goes the way of the Dodo - whichever comes first.


-=Ajax=-
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No. of Recommendations: 24
Liberals can scarcely contain their glee at the prospect of destroying another icon of American success.

Funny how some jump to the defense of shoddy business practices.

Steve
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No. of Recommendations: 3
Internal analysis of Emails by artificial intelligence could have notified relevant department managers of complaints put in writing by employees between one another as well as with their supervisors.

Who would have been the ones to order such an AI system be created?

Would they have sought a system to help identify and deal with problems, or complainers?
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No. of Recommendations: 7
Shareholders don't deserve to be punished for lax management or lazy supervision of employees.


Then again, some accountability for voting unwisely when it comes to board members would be in order?


... That points to what may have been the Boeing board’s principal failure. It dates back to 2011, when the company decided to tweak the design of its existing 737 narrow-body airliner to compete with Airbus rather than design a new aircraft from the ground up. ... In other words, the Boeing board set policies and created incentives for top management that led to disaster. Of the Boeing board’s 13 current members, at least seven were in place when those decisions were made in 2011. ...

https://www.latimes.com/business/story/2020-01-03/boeing-boa...
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No. of Recommendations: 1
SuisseBear writes,

In other words, the Boeing board set policies and created incentives for top management that led to disaster. Of the Boeing board’s 13 current members, at least seven were in place when those decisions were made in 2011

</snip>


The more pressing problem Boeing has is that when Harry Stonecipher was elevated to CEO after Phil Conduit resigned in disgrace, he brought in a whole cadre of Jack Welch acolytes from General Electric. They've plagued the company to this day. The problems started with the massive outsourcing on the 787 Dreamliner program -- a classic, capital-light, Jack Welch approach.

intercst
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No. of Recommendations: 1
Funny how some jump to the defense of shoddy business practices.

Steve



Funny how Airbus' new orders are surging and Boeing's are plunging? Guess those commie Euros know something about business afterall?

Wonder how long ... nay wonder if Boeing even can fix the mess? I suppose they can call in some owed favours from their US government toadies for a bail out when the funds run out and nobody is willing to throw more down that pit?

What an odd world it would be without Boeing?

Just read a short clip on the major difference between Airbus fly by wire and Boeing's traditional yoke. Apparently Airbus won't allow pilots to exceed safe limits.... how rude!

Anymouse
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No. of Recommendations: 4
Shareholders don't deserve to be punished for lax management or lazy supervision of employees.

Yes they do. They are the business owners after all.

Neither do customers deserve to be exposed to potential harm

Amen!

Spiffy
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No. of Recommendations: 6
Then again, some accountability for voting unwisely when it comes to board members would be in order?

Thing is, management has rigged the system so most shareholders do not have any real input. BoD members are nominated by the BoD. Shareholders can only vote "for", or, in some cases "against" the nominees they had no say in nominating. Shareholder "say on pay" votes for the honchos are only "advisory". Any other vote that management doesn't like tends to be dismissed as "advisory". Management of an increasing number of companies are making an increasing number of applications to the SEC to not even publish properly offered shareholder proposals. Unless a shareholder has enough size to nominate his own slate of BoD candidates, he is pretty much ignored by management.

Then add that, to some shareholders, the only thing they worry about is whether current management made them richer, this year. Unfortunately, Welchian management will make shareholders richer, until all the tricks have been exhausted and the house of cards collapses.

Steve
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No. of Recommendations: 2
Funny how Airbus' new orders are surging and Boeing's are plunging? Guess those commie Euros know something about business afterall?

Not only Airbus, but this leaves the door open for the Russkies and Chinese, especially to third world carriers that would be attracted by favorable financing terms. The Chinese don't have a long track record in building airliners, but the Russkies certainly do.

Steve
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No. of Recommendations: 3
The Chinese don't have a long track record in building airliners, but the Russkies certainly do.

Exactly! And what if China and Russian decide to team up?

https://en.m.wikipedia.org/wiki/CRAIC_CR929

Pete
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No. of Recommendations: 1
Thank you for recommending this post to our Best of feature.

The Chinese don't have a long track record in building airliners, but the Russkies certainly do.

Exactly! And what if China and Russian decide to team up?

https://en.m.wikipedia.org/wiki/CRAIC_CR929

Pete



Then there is this fellow with hundreds of orders already on the books.

https://www.flightglobal.com/airframers/c919-test-fleet-comp...

C919 test fleet complete with flight of sixth prototype

By Greg Waldron27 December 2019

The sixth and final Comac C919 prototype has conducted its maiden sortie from Shanghai’s Pudong International airport.

...

Cirium fleets data shows that there are 305 firm orders for the C919. Comac has also secured more than 700 commitments for the CFM International Leap-1C-powered aircraft.

FlightGlobal understands that the C919 is likely to enter service in 2021 or 2022, a delay compared with the originally planned timeframe of 2020-2021.

The launch customer for the type will be Shanghai-based China Eastern Airlines.



Many of the Russian 'airliners' started out as converted bombers including this fellow that descended from the famous Tu-95 "Bear" that we saw a lot of during the Cold War.

https://en.wikipedia.org/wiki/Tupolev_Tu-114

https://en.wikipedia.org/wiki/Tupolev_Tu-95

As with the B-52 the Bear is still flying, they both became operational in the same year just a few months apart.


Tim <since it is a long weekend for y'all ... Do bone spurs keep you out of jail?>
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No. of Recommendations: 8
I believe it was Boeing management that destroyed this icon of American business.
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No. of Recommendations: 2
Thing is, management has rigged the system so most shareholders do not have any real input. BoD members are nominated by the BoD. Shareholders can only vote "for", or, in some cases "against" the nominees they had no say in nominating. Shareholder "say on pay" votes for the honchos are only "advisory".


Yeah. In addition, what is the percentage of Boeing owners spending much energy on reviewing the qualifications and suitability of board members and proposals. Fund companies/ ETFs with bargain fee schedules that mindlessly bought the stock because it is in many of the indices?


Top Institutional Holders

Holder Shares Date Reported % Out Value
Vanguard Group, Inc. (The) 40,568,326 Sep 29, 2019 7.21% 15,435,030,993
Price (T.Rowe) Associates Inc 39,597,575 Sep 29, 2019 7.04% 15,065,689,360
Blackrock Inc. 34,923,454 Sep 29, 2019 6.21% 13,287,326,543
Newport Trust Co 30,491,269 Sep 29, 2019 5.42% 11,601,013,116
State Street Corporation 26,121,207 Sep 29, 2019 4.64% 9,938,335,627
Capital World Investors 22,758,551 Sep 29, 2019 4.04% 8,658,945,898
Capital International Investors 11,247,279 Sep 29, 2019 2.00% 4,279,252,241
Geode Capital Management, LLC 6,991,926 Sep 29, 2019 1.24% 2,660,218,085
Jennison Associates LLC 6,391,411 Sep 29, 2019 1.14% 2,431,740,143
Northern Trust Corporation 5,795,545 Sep 29, 2019 1.03% 2,205,031,006

https://finance.yahoo.com/quote/BA/holders/
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No. of Recommendations: 2
Suisse Bear points out without underlining the apt irony that much modern investment is on autopilot controlled by algorithms dependent on “just one fallible pitot tube”.
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No. of Recommendations: 4
Fund companies/ ETFs with bargain fee schedules that mindlessly bought the stock because it is in many of the indices?

Actively managed funds buy whatever makes their NAV go up the fastest, because, when people are looking through Morningstar, they want the one with the NAV going up the fastest. Welchism at the companies the fund holds will make the NAV go up fast, until the hollowed out company collapses.

Steve
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No. of Recommendations: 0
[President] calls Boeing a 'big, big disappointment':

President slams troubled aerospace giant because grounding of 737 MAX plane has had a knock-on effect for US economy

President ... said Boeing was 'very disappointing company' at Davos summit

He cited the company's recent trouble after grounding the 737 MAX plane

Boeing officially pushed back time frame for the 737 MAX to return to the skies

...

Boeing had Tuesday officially pushed back the time frame for the 737 MAX to return to the skies, with executives stating they do not foresee regulators lifting a flight ban until June or July, months later than the original estimate.

The revelation sent shares plunging and overshadowed an earlier announcement of a first flight of the delayed 777X plane.

...

https://www.dailymail.co.uk/news/article-7915803/Trump-calls...
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