deicer Posted September 3 Share Posted September 3 Welcome back Don! Have missed your wisdom and wit on the board! 2 Link to comment Share on other sites More sharing options...
Don Hudson Posted September 3 Share Posted September 3 Thank you, deicer...-I've missed it too but a break was good. Been watching the industry, partitularly the character of incidents and the (rare) accidents for trends that are extensions of past "automation" events and new ones which may have to do with training regimes and new entry methods into the profession. I have some friends contributing to the mentoring process - very encouraging. Link to comment Share on other sites More sharing options...
Kip Powick Posted September 3 Share Posted September 3 20 hours ago, Don Hudson said: Hi conehead - thank you!, - yes, a while for sure; dropped in once in a while - nothing other than just taking a break from writing - We are all healthy and happy with three young grandchildren, (6, 8 & 10, all girls!), so busy and doing a lot of photography work. Cheers! Don Granddaughters... me too....3 girls...12,14,16, One in Softball, (12yr old) sisters 14, 16 do sailing and hockey..Silver medal in sailing at Ontario Summer Games, now both prepping for hockey, both on Kingston AA Rep teams. Surprising how far a Grandfather will drive to watch one of the players be on the ice for 12-15 mins Glad to hear all is well at your end Don........be safe (Putting the boat away for the season) 1 Link to comment Share on other sites More sharing options...
Don Hudson Posted September 4 Share Posted September 4 G'daughters - soooo precious - great accomplishments for them all, Kip, really nice to hear! Link to comment Share on other sites More sharing options...
Don Hudson Posted September 4 Share Posted September 4 Re Boeing's stock price, ($160, down from 174 with 4x volume): https://www.msn.com/en-us/money/topstocks/boeing-stock-got-hammered-why-this-analyst-downgrade-terrified-investors/ar-AA1pULnj 1 Link to comment Share on other sites More sharing options...
GDR Posted September 4 Share Posted September 4 14 hours ago, Don Hudson said: G'daughters - soooo precious - great accomplishments for them all, Kip, really nice to hear! We mostly do boys but I now have 10 grandchildren with the youngest being 23 and 12 great-grandkids and all doing well. I am now officially an ancestor. Life is good. Great to hear from you again Don. 2 Link to comment Share on other sites More sharing options...
Don Hudson Posted September 4 Share Posted September 4 Hi Greg...You too, Greg! Twelve great-grandkids...wow! - re, " I am now officially an ancestor." LOL!!! We still visit Todd's former business...it's being run very nicely! It was always a pleasure to drop in, chat and keep up. Link to comment Share on other sites More sharing options...
GDR Posted September 4 Share Posted September 4 Actually I should have pointed out the it is only 11 greats but 1 is enroute arriving near the end of the year which will make 8 of those 12 Todd's grand kids. 1 Link to comment Share on other sites More sharing options...
Malcolm Posted September 8 Share Posted September 8 FILE - A Boeing machinist and union member leads cheers during the "stop work meeting" and strike sanction at T-Mobile Park in Seattle, July 17, 2024. (Kevin Clark/The Seattle Times via AP, File)© The Associated Press DALLAS (AP) — Boeing and its largest union are entering the last week of contract negotiations before a threatened strike by more than 30,000 workers who build the planes that carry millions of airline passengers every year. A walkout would add to the headwinds facing Boeing, which is hurtling toward a sixth straight money-losing year and just hired a new CEO to turn things around. The regional branch of the International Association of Machinists and Aerospace Workers says the two sides are far apart on wages, health care and job security. The union of started out seeking pay raises of more than 40% over three years, although "that's probably not where we're going to end up,” IAM District 751 President Jon Holden said last week. The union has scheduled a two-part election for Thursday, with voting at more than a half-dozen locations in Washington state and one in Southern California. Workers will vote on Boeing’s last contract offer and whether to authorize a strike if the offer is rejected. A walkout could begin by Friday morning. A straw vote in July to gauge support for a strike passed with 99.99% support, according to the union. "What we are asking for is reasonable,” Holden said in an interview. “We need to get more wages to address the very low increases over the last 10 years, massive inflation, massive cost-shift on health care. We are trying to reach an agreement, but (union members) are ready to take action if we don't get there.” Related video: 32,000 Boeing employees may go on strike (TheStreet) I'm Conway KENS reporting from the New York Stock Exchange. Loaded: 10.20% Play Current Time 0:00 / Duration 1:57 Quality Settings Captions Fullscreen TheStreet 32,000 Boeing employees may go on strike Unmute 0 View on Watch Holden said the union has a strike fund in the millions and isn’t afraid to tap it. Boeing declined to make an executive available to discuss the labor negotiations. A spokesperson provided a one-sentence statement. “We’re confident we can reach a deal that balances the needs of our employees and the business realities we face as a company,” the statement said. Boeing’s new chief executive, Kelly Ortberg, has tried to take a conciliatory posture toward labor. He is working in Seattle, to be near the factories where the company builds most of its commercial airplanes, instead of at headquarters in Arlington, Virginia. He walked the floor of the 737 Max plant during his first day on the job. “He understands that they are basically contentious relationships with the union, and he wants to make those relationships better,” TD Cowen aerospace analyst Cai von Rumohr said. Ortberg already has a long to-do list. The new CEO will try to fix Boeing’s aircraft-manufacturing process, gain regulatory approval for the long-delayed 777X jumbo jet, limit damage from over-budget government contracts, pay down $45 billion in net debt, and absorb Spirit AeroSystems, the money-losing key supplier that Boeing just bought for $4.7 billion. FILE - Boeing 737 MAX airplanes are shown on the assembly line during a media tour at the Boeing facility in Renton, Wash., June 25, 2024. (Jennifer Buchanan/The Seattle Times via AP, Pool, File)© The Associated Press Ortberg's toughest job will be restoring Boeing's reputation for quality, which was crushed after two 737 Max jets crashed less than five months apart in 2018 and 2019, killing 346 people, and took another big hit when a door plug blew off a Max during an Alaska Airlines flight in January. Unlike strikes at airlines, which are very rare, a walkout at Boeing would not have an immediate effect on consumers. It would not result in any canceled flights. It would, however, shut down production and leave Boeing with no jets to deliver to the airlines that ordered them. “During a strike, they don’t work on planes, they don’t deliver planes,” von Rumohr said. Aircraft makers typically get about 60% of the purchase price on delivery, “so not delivering planes has a massive impact on your cash in-flow, and your costs probably continue on.” An eight-week strike in 2008, the longest at Boeing since a 10-week walkout in 1995, cost the company about $100 million a day in deferred revenue. Meeting the union’s wage demand would cost Boeing $1.5 billion in cash, which is “a small price to pay versus a strike,” Jefferies aerospace analyst Sheila Kahyaoglu said. In a note to clients, she estimated a strike would cost the company about $3 billion, a calculation based on the impact of the 2008 strike plus inflation and current airplane-production rates. Boeing is in far worse financial shape than it was in 2008. The company has lost $27 billion since the start of 2019, around the time that its best-selling plane, the 737 Max, was grounded worldwide after the crashes in Indonesia and Ethiopia. Revenue is down, debt is up. Boeing's greatest strength is that is remains one of the world’s two leading manufacturers of airline jets, forming a duopoly with Europe's Airbus. Boeing has a huge backlog of orders, which it values at more than $500 billion. The company's defense and space business is a major government contractor, although that business too is struggling. Its most recent setback was NASA's decision to use SpaceX instead of Boeing's Starliner capsule to bring two astronauts home from the international space station. Job security is emerging as a key issue in the current negotiations. The union is still seething over the loss of work on the 787 Dreamliner, a large, two-aisle jetliner that is assembled by nonunion Boeing workers in South Carolina. The IAM wants a guarantee its members will keep the work they have and that the union will represent the workers who build Boeing's next airliner. That plane isn't even on the drawing board yet, and production could be a decade or more away. It is vital to IAM, however, because one-third of the union's members at Boeing — more than 10,000 people — work on the 737 Max, which the new plane would replace. The union president said Boeing has been in “free fall" for more than a year, and he acknowledged the company faces huge and costly challenges. Despite all that, he said, the union is in good position to win a strong contract. “All employers are searching for skilled labor, and we have it,” Holden said. “This company has a massive backlog of over 5,000 airplanes to build and deliver, so we are in high demand right now. That’s our leverage.” David Koenig, The Associated Press 1 Link to comment Share on other sites More sharing options...
Malcolm Posted September 8 Share Posted September 8 T Boeing and union reach tentative deal, 25% wage increase for workers Story by DPA International • 41m he struggling aircraft manufacturer Boeing announced on Sunday that it has reached a tentative agreement with its largest union which includes a 25% wage increase just days before a threatened strike. The International Association of Machinists (IAM), which represents approximately 33,000 employees, had originally been advocating for raises of about 40%. The income increase agreed on Sunday, as well as improvements to healthcare costs and retirement benefits, are to be applied over four years. It also provides increased job security for union members, including a commitment to build the next new airplane at one of the union-represented plants in the Puget Sound region. Boeing noted that if the tentative agreement is ratified by September 12, 2024, employees will receive a one-time $3,000 lump sum payment. The agreement is set to expire at midnight on Thursday, and a strike could have started immediately if no deal was reached. Link to comment Share on other sites More sharing options...
Malcolm Posted September 10 Share Posted September 10 A Boeing 737 MAX aircraft is assembled at the company's plant in Renton, Washington, U.S. June 25, 2024. Jennifer Buchanan/Pool via REUTERS/File Photo© Thomson Reuters FAA needs to ensure adequate safety metrics before Boeing 737 MAX production can grow -- agency Story by Reuters WASHINGTON (Reuters) - The head of the Federal Aviation Administration said Tuesday the agency must ensure the planemaker's safety processes are adequate before it will lift its 737 MAX production cap. FAA Administrator Mike Whitaker said he raised the issue with Boeing's new chief executive Kelly Ortberg in their first conversation and wants to ensure the planemaker follows through on its quality turnaround plan. "There have been comprehensive plans before, so I think the goal now is we really need to make sure that that's executed," Whitaker said at an industry conference. "We've capped production -- that was my first conversation with the new CEO. We need to make sure the safety metrics are exactly where they need to be to grow." (Reporting by David Shepardson) Link to comment Share on other sites More sharing options...
Malcolm Posted September 10 Share Posted September 10 Found on Facebook, Boeing offer Link to comment Share on other sites More sharing options...
Malcolm Posted September 12 Share Posted September 12 Boeing boss makes last-ditch plea to workers ahead of strike vote (bbc.com) Boeing's new chief executive Kelly Ortberg has pleaded with workers to not go on strike as it would put the company's "recovery in jeopardy". It comes hours ahead of a crucial union vote that could trigger industrial action at the embattled company. The aviation giant's executives and union representatives reached a deal earlier this week that includes a 25% pay rise over four years but it has yet to be approved by union members. If workers vote against the agreement it would lead to a second ballot on whether to start a strike as early as Friday. Link to comment Share on other sites More sharing options...
deicer Posted September 12 Share Posted September 12 2 hours ago, Malcolm said: Boeing boss makes last-ditch plea to workers ahead of strike vote (bbc.com) Boeing's new chief executive Kelly Ortberg has pleaded with workers to not go on strike as it would put the company's "recovery in jeopardy". It comes hours ahead of a crucial union vote that could trigger industrial action at the embattled company. The aviation giant's executives and union representatives reached a deal earlier this week that includes a 25% pay rise over four years but it has yet to be approved by union members. If workers vote against the agreement it would lead to a second ballot on whether to start a strike as early as Friday. Maybe he and the executive should put some skin in the game. Say a 25% pay cut at their level to show sincerity? Link to comment Share on other sites More sharing options...
Malcolm Posted September 12 Share Posted September 12 4 minutes ago, deicer said: Maybe he and the executive should put some skin in the game. Say a 25% pay cut at their level to show sincerity? any idea re what they are paid? The following link gives you some data but not top executive pay https://www.levels.fyi/companies/boeing/salaries the next link however does contain some information https://www.aviationpros.com/aircraft/news/21260174/despite-boeing-woes-top-executives-get-big-paychecks Link to comment Share on other sites More sharing options...
deicer Posted September 12 Share Posted September 12 1 minute ago, Malcolm said: any idea re what they are paid? The following link gives you some data but not top executive pay https://www.levels.fyi/companies/boeing/salaries Calhoun is making $33 Million on his new package approved in May 2024. And he'll be getting golden parachute as well. https://apnews.com/article/boeing-shareholders-ceo-compensation-investigations-2216aff126c2c48f03294ae3541bf7b6 The new guy will be getting $22 Million per annum. https://www.seattletimes.com/business/see-how-new-boeing-chief-kelly-ortbergs-pay-compares-with-was-best-paid-ceos/ Link to comment Share on other sites More sharing options...
W5 Posted September 13 Share Posted September 13 https://www.bbc.com/news/articles/c8jlj3dnlw7o Boeing workers vote to strike. Link to comment Share on other sites More sharing options...
Malcolm Posted September 13 Share Posted September 13 Boeing's US factory workers strike, halting 737 MAX production By Joe Brock and David Shepardson September 13, 20248:14 AM MDTUpdated 3 min ago About 30,000 workers in Seattle and Portland areas on strike Boeing already wrestling with output delays, high debt Strike poses a challenge for new CEO Kelly Ortberg Shares fall 2.1% early trading session SEATTLE, Sept 13 (Reuters) - Boeing's (BA.N), opens new tab U.S. West Coast factory workers walked off the job on Friday after overwhelmingly rejecting a contract deal, halting production of the planemaker's strongest-selling and sending shares down over 2%. The first strike since 2008 comes as the planemaker is under heavy scrutiny from U.S. regulators and customers after a door panel blew off a 737 MAX jet mid-air in January. The mounting crises hit Boeing's stock and sparked a leadership upheaval. The shares fell 2.1% in the early morning trading session. The stock has lost nearly 38% so far this year, losing $58 billion in marketvalue. Report this ad Shares in Spirit Aerosystems (SPR.N), opens new tab, the supplier Boeing is buying, fell 0.6%. New CEO Kelly Ortberg was brought in just weeks ago to restore faith in the planemaker and proposed a deal including a pay rise of 25% over four years, far lower than the 40% workers had demanded. Roughly 30,000 International Association of Machinists and Aerospace Workers (IAM) members who produce Boeing's top selling 737 MAX and other jets in the Seattle and Portland areas voted on their first full contract in 16 years, with 94.6% rejecting it and 96% favoring a strike in a two-part ballot. "This is about fighting for our future," said Jon Holden, who headed the negotiations for Boeing's largest union, before announcing the vote result on Thursday evening. The union will get back to the table as quickly as it can, Holden told reporters, without saying how long he thought the strike would last or when talks would resume. Boeing said it was ready to get back to the negotiating table, a sign that it could sweeten the deal. "The message was clear that the tentative agreement we reached with IAM leadership was not acceptable to the members. We remain committed to resetting our relationship with our employees and the union," the planemaker said in a statement. Boeing had said it had offered workers everything it could and needs to plan for the investments needed to replace its best-selling single-aisle models while placating striking workers. A long strike could badly hit Boeing's finances, already groaning due to a $60-billion debt pile. To cover debt maturities, Boeing needs to generate enough cash flow. Bank of America said Boeing would likely have to move closer to IAM's initial wage proposal. Line chart showing the change in share price of Boeing and S&P500 from Jan. 2018 annotated with various safety incidents of Boeing aircrafts and spacecrafts. BOEING'S CHALLENGES The proposed deal included a $3,000 signing bonus and a pledge to build Boeing's next commercial jet in the Seattle area, provided the program was launched within the contract term. Data from equity research firm Melius Research showed median employee compensation for the aerospace and defense firms companies it monitors grew 12% between 2018 and 2023. It fell 6% for Boeing and 19% for Spirit Aerosystems. Although IAM leadership recommended last Sunday that its members accept the contract, many workers responded angrily, arguing for the original demand and an annual bonus. STRIKE! Workers have been protesting all week in Boeing factories in the Seattle area that assemble Boeing's MAX, 777 and 767 jets. On Friday, members in the union hall cheered and chanted "Strike! Strike! Strike!" and shortly after midnight, striking workers started to gather outside Boeing factories in the Seattle area. Many waved placards that read: ‘On Strike Against Boeing', and drivers honked horns in support. “I’m willing to strike for two months or even longer. Let’s go as long as it takes to get what we deserve,” said James Mann, a 26-year-old who works in a wings division. The Biden administration was in touch with both sides, White House press secretary Karine Jean Pierre said on Thursday. "We are going to encourage both parties to negotiate in that way, in good faith and reaching a strong contract," she said. A prolonged strike would weigh on airlines that depend on Boeing jets and suppliers that manufacture parts and components. JPMorgan said Boeing could adjust the pace at which it takes material. "At a minimum, a prolonged strike could affect supplier growth expectations," said analyst Seth M. Seifman. Boeing workers' last strike in 2008 shuttered plants for nearly two months and hit revenue by an estimated $100 million per day. According to TD Cowen, a 50-day strike could cost Boeing $3 billion to $3.5 billion of cash flow. CFM, the sole-source engine supplier for the 737 MAX, said there was no immediate impact to its operations. Southwest Airlines (LUV.N), opens new tab said it remains in close communications with Boeing, adding earlier this year it took steps to address potential deliveries disruptions. Cathay Pacific (0293.HK), opens new tab and flydubai said they were in touch with Boeing. A flydubai spokesperson said the airline was looking forward to Boeing swiftly resolving the issue. S&P Global Ratings said that an extended strike could hurt its overall rating. Both S&P and Moody's rate Boeing one notch above junk status. Link to comment Share on other sites More sharing options...
Malcolm Posted September 18 Share Posted September 18 (Reuters) - Boeing CEO Kelly Ortberg said Wednesday the planemaker will temporarily furlough numerous U.S. executives and other employees after about 30,000 machinists went on strike Friday, halting production of its 737 MAX and other airplanes. "We are initiating temporary furloughs over the coming days that will impact a large number of US-based executives, managers and employees," Ortberg said. "We are planning for selected employees to take one week of furlough every four weeks on a rolling basis for the duration of the strike." Ortberg also said he and other Boeing leaders "will take a commensurate pay reduction for the duration of the strike." (Reporting by David Shepardson) Related video: Boeing implements Link to comment Share on other sites More sharing options...
Malcolm Posted September 18 Share Posted September 18 Saskatchewan asylum seekers: Government says it will resist federal plan to accept 7,000 asylum seekers | CTV News Published Sept. 18, 2024 9:47 a.m. MDT The Government of Saskatchewan has said it will not accept asylum seekers under a recent federal proposal to relocate them across Canada. Currently, the majority of the 235,000 are in Ontario and Quebec – but the two provinces are having difficulty coping with the large number. Ottawa wants all provinces to accept a share but a growing number of provinces are resisting. Saskatchewan is one of them. RELATED STORIES Sask. immigration draws based on specific countries of origin could be 'problematic': advocate Sask. immigration employee suspected of involvement in illegal immigration scheme Sask. immigration nominations to increase 42% by 2025, province says "No, I mean what we have said all the way along is that regular and lawful immigration is something that we are open to and beyond open to,” Trade and Economic Development Minister Jeremy Harrison. “That's something that we've encouraged and I think has been a great benefit to the province. That's what we want to continue on that path." Saskatchewan's share under the federal proposal would be about 7,000 people. The asylum seekers are primarily from Mexico, India and Nigeria. "I would be concerned. I'm not sure that the public are fully supportive of those who perhaps have claimed asylum on some spurious grounds,” Harrison added. A growing list of provinces including Alberta, British Columbia, Nova Scotia and New Brunswick are taking issue with the idea. "It's not fair to the asylum seekers to move them around the country into areas that are not able to manage," New Brunswick Premier Blaine Higgs said. Ottawa says there are levers that it could use with the provinces. Saskatchewan says it's willing to talk but believes Ottawa should not attempt to solve its problems on the backs of provinces. 1 Link to comment Share on other sites More sharing options...
Malcolm Posted September 20 Share Posted September 20 No surprise here, someone had to pay. ARLINGTON, Va. (AP) — Boeing on Friday replaced the head of its troubled defense and space business, which has struggled with money-losing government contracts and embarrassing setbacks involving its Starliner space capsule. The company said Theodore “Ted” Colbert III was removed immediately as president and CEO of Boeing Defense, Space & Security and replaced temporarily by the division's chief operating officer, Steve Parker. A search is underway for a permanent replacement. Colbert spent 15 years at Boeing, serving as chief information officer and leading its global-services business before running the defense unit. Kelly Ortberg, who took over as Boeing CEO last month, said in a memo announcing Colbert's departure, “At this critical juncture, our priority is to restore the trust of our customers and meet the high standards they expect of us to enable their critical missions around the world. Working together we can and will improve our performance and ensure we deliver on our commitments.” Boeing is trying to dig out from unprofitable contracts with the Pentagon and NASA, including new Air Force One presidential planes and refueling tankers for the Air Force. Since the start of 2022, the defense and space division has lost $6 billion, slightly more than Boeing’s airplane business. The Starliner capsule that Boeing built for NASA suffered problems with thrusters on its first crewed mission to the international space station. NASA decided this month it was too risky for two astronauts to fly home in the capsule, so they will stay in space until February and ride back to Earth on a SpaceX capsule. The Associated Press Link to comment Share on other sites More sharing options...
Don Hudson Posted September 21 Share Posted September 21 Everyone recognizes that the chickens are coming home to roost at Boeing. Many years ago now, the writing was on the wall when the corporation was bought by McDD with Boeings own money. McDD's more military mindset of aircraft design and construction changed Boeing; the takeover gradually alters focus on profit, shareholder value and, with the loss of the only other viable competitor, sat back on the 1960's with their B747 & B737 bread-and-butter designs, while Airbus technologically broke ground with true fbw, expanding upon the learning they did with the A300 & A310 and their helicopters. All this is water under...etc. What now? Will the new president, whomever that may be, find a way to bail out a failing company to keep major aviation manufacturing alive at home in America? Will they tariff their way? Lessons learned under Bush's & Obama's approach to (ultimately) "keep banks and financial houses alive" may be useful, if Boeing can manufacture such a thing in public, and Airbus, Embraer and the Chinese will not be silent. The notion of "just deserts" is an anachronism. Other organisations failed to learn the harsh lessons that accidents provide - NASA comes to mind - everyone, especially those who fly (or have done so...), who are paying attention to Boeing's continuing saga of partial successes in an industry where things must be continuously, statistical probabilities around 10-9 know that when motivation pushes out standards, something breaks. 1 1 Link to comment Share on other sites More sharing options...
deicer Posted Monday at 07:34 PM Share Posted Monday at 07:34 PM https://www.cnn.com/2024/09/23/business/boeing-raises-offer-strike/index.html Boeing is raising its offer to end the strike Boeing said Monday it has raised its offer to the International Association of Machinists union to end the strike by 33,000 union members that has now entered its 11th day. The new offer would give members a 30% raise over the four-year life of the contract, including an immediate 12% raise, up from the 25% in overall raises and an immediate 11% raise that membership voted almost unanimously against on September 12, just before walking off the job at Boeing plants on the West Coast. “We heard your feedback,” said a statement from Boeing to union members on its website. “We’ve made significant improvements to provide more money in key areas.” The new offer also doubled a signing bonus to $6,000, and increased the money that Boeing would contribute to 401(k) plans of union members to match contributions they make themselves. But it did not restore the traditional pension plan that union members lost 10 years ago in a previous labor agreement. The strike, which has brought production of commercial jets to a near-halt, is the first at the troubled aircraft maker in 16 years. Despite its many problems – including the loss of more than $33 billion over the last five years – Boeing is still a major force in US manufacturing and vital to America’s air transportation system. It is the country’s largest exporter, and by its own estimates contributes $79 billion to the US economy, supporting 1.6 million jobs directly and indirectly at suppliers spread across all 50 states. An IAM spokesperson said the union did not have an immediate comment on the new offer. In a decision that took place just before the strike began, 95% of union members voted against the previous tentative labor agreement. The company said that the new offer is contingent on a contract being ratified by September 27. Union members have expressed anger over the concessions they have given up since the last strike in 2008, such as the loss of pension plans, which they agreed to only after Boeing threatened to move production of two new aircraft to non-union plants. The company had already moved production of the 787 Dreamliner to a nonunion plant in South Carolina. That plant continues to operate during the strike. While Boeing may not lose any sales due to the strike, the inability to assemble and deliver planes already ordered by airlines cuts off a vital source of cash. Boeing gets most of its payment only upon delivery of an aircraft to an airline. The company has announced that many of its nonunion staff will be furloughed without pay one week out of every four during the duration of the strike, and that it will cut back purchases to suppliers and vendors in an effort to save cash. It said it will also reduce pay of top executives. Link to comment Share on other sites More sharing options...
W5 Posted Monday at 10:40 PM Share Posted Monday at 10:40 PM Boeing’s shareholders: which do you prefer? Dilution or bankruptcy? https://leehamnews.com/2024/09/23/boeings-shareholders-which-do-you-prefer-dilution-or-bankruptcy/ Sept. 23, 2024, © Leeham News: A Wells Fargo analyst calculated The Boeing Co. might have to issue 190 million shares of stock to get itself out of the financial mess it’s in. At the $155 range Boeing’s stock has been recently trading, which would be just shy of $30bn. Last week, Barron’s (a financial publication) wrote that Boeing has too much debt and perhaps a $10bn equity offering would suffice. The Wells Fargo analyst and Barron’s complained that issuing stock would hurt shareholders due to the dilution. On Sept. 12, the day Boeing’s IAM 751 union rejected the Tentative Agreement for a new labor contract and voted to strike at midnight, LNA did a deep dive analysis of the Wells Fargo equity speculation and the increasing speculation that Boeing might be forced into bankruptcy if the strike lasts a long time. Before that, LNA analyzed the net debt levels, how long it would take to pay it down, and the annual interest to be paid. Boeing’s financial position is precarious. It needs $10bn in cash to run the company; on June 30, the end of the second quarter, it had $12bn in cash. It’s losing an estimated $100m a day during the strike. Wall Street types wring their hands over the dilution of a possible stock offering. This begs the question: would they prefer dilution or bankruptcy, which typically wipes out shareholders? Or would they prefer at least a decade of stagnation while Boeing tries to operationally repair its balance sheet? LNA welcomes the idea of a $30bn equity offering. Boeing won’t fully recover without drastic action. And a massive equity offering best fits this need. Link to comment Share on other sites More sharing options...
Specs Posted Tuesday at 12:04 AM Share Posted Tuesday at 12:04 AM 1 hour ago, W5 said: Boeing’s financial position is precarious. It needs $10bn in cash to run the company; on June 30, the end of the second quarter, it had $12bn in cash. It’s losing an estimated $100m a day during the strike. Get your Airbus orders in now! Link to comment Share on other sites More sharing options...
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