Boeing's burned through a lot of cash in the first quarter -- $3.9 billion -- as it slowed production and compensated airlines for delivery delays and a brief grounding of its Max 9 models. While that's not as horrible as the $4.4 billion free cash flow outflow that Wall Street had expected, it underscores the urgent need for the US planemaker to resolve questions around the quality of the workmanship in its factory. The planemaker's cash balance plunged to $7.5 billion from $16 billion at the start of the year. That doesn't leave Boeing with much leeway to absorb the costs of its slowed production or to finance its planned acquisition of supplier Spirit AeroSystems Holdings Inc. But Boeing CEO Dave Calhoun, who plans to step down later this year, told workers the planemaker is "seeing early signs of more predictable, stable and efficient cycle times in our 737 factory, and expect this will continue to slowly improve." #Boeing #earnings #737Max
It is highly apparent to some that: All the oversight in this highly regulated industry apparently does not help... The oversight authority cannot be decoupled from the confusion... Any decision maker cannot make an appropriate decision when aviation system safety constructs are not known... The commercial aviation industry is not tightly coupled and it requires tightly coupled controls... Bottom line fixation enables uncontrolled risks... There are to many SMS experts that do not understand the gaps between SMS and aviation system safety... There are too many cooks in the kitchen that have no clue about aviation system safety... Some so-called manager in the chain will make an inappropriate decision that will adversely affect the system from an aviation system safety view... You need a qualified aviation system safety person in the room...If not expect uncontrolled risks... Aircraft need to be designed to enable pilots not disable them... All the existing authorities need to be trained in aviation system safety... Oversight needs to be totally transparent and inclusive... Enable appropriate system safety analyses, contingency analyses and risk assessment... Exclude any construct above expect uncontrolled risks...
Mike McCann
3mo
There are ALL kinds of ways you can "cook the books" in accounting (I have an MBA focusing on accounting) and this is likely how Boeing is not showing the total impact of recent safety issues. Independently audit Boeing books (if you can find an independent auditor) for the next three years and see what changes appear.
The problem with these big companies is that they use regulations as an excuse to make their products sophisticated. The problem with their engineers is if it can be made simple they would be out of a job. You can not scream climate change and sustainability in one ear and demand for complexity in the other they do not compliment each other they are contradictions. The idea of aircraft having to have wings, and either a propeller or turbo jet engine is obsolete, you can try and deny it but we have already figured out levitation, I know this because I have, and if I have so did they.
Laszlo Molnar
3mo
Paying high wage for stagnating or going backward costs a lot without any benefit. Going forward with innovation make sense to deliver intelligent workload for talents, and makes the world far better.
Anna N
3mo
I think that despite the slightly improved performance in the first quarter, Boeing still faces a number of challenges. These issues will require a long-term and sustained effort by the company to address in order to truly achieve solid business growth.
“One swallow does not a summer make, neither does one fine day; similarly one day or brief time of happiness does not make a person entirely happy.” Aristotle.
James Holbert
2mo
Spend money, uselessly hoarded and heaped up to correct deficiencies is not burning through cash. It is sanity returning.
John Moore
3mo
Keep at it...AND stay in this cycle for sometime..many companies I. the U.S. beed to "do"similar things..a d follow through...not just quarterly results. That WAS then...this is NOW!! That's called LEADERSHIP!!!
Greg Rosko
3mo
When a company who manufactures airplanes cuts corners and kills people plus has major quality issues expect losses. There past has caught up with them. People have lost faith in the company after the MAX and 787 programs.
System Safety Engineering and Management of Complex Systems; Risk Management Advisor...Complex System Risks
3moSo how many MAX- related catastrophic risks do we need to become apparent before one understands the systemic management problem here? These adverse outcomes are the result of bad decisions, indecisions, or decisions devoid of appropriate risk-based thinking, throughout the life cycle and adverse progression life cycle...? Including intentional acts, in action, in decisions... ? Further, we humans make things: systems, processes, procedures, operations, tasks, products, steps, instructions, literature, on and on.... When we make these things we must identify, eliminate, or control the associated risks... When we make things and do not understand the risks system accidents and other adverse outcomes will happen... Tight envelope design, tight load analysis, aluminum wire, complex contingencies, optional costly training, airworthiness certification, validation and verification of appropriate risk controls, quality management, SMS attempts? What do you expect aviation system safety? What?