By Scott Hamilton
Jan. 6, 2020, Dec. 23, 2019, © Leeham News: Boeing’s first priority this year is to get the 737 MAX recertified, returned to service, production restarted and begin the long path on the road to normalcy.
The second priority is to remake the leadership and governance.
The third, which may slip to 2021, is to launch a new airplane program to replace the MAX 9 and MAX 10.
By Scott Hamilton
Dec. 23, 2019, © Leeham News: The Boeing Board of Directors has fired Dennis Muilenburg.
Board chairman David Calhoun was named president and CEO, effective next month. The delay is required while Calhoun resigns from other business commitments.
Boeing CFO Greg Smith was named interim CEO. Board member Lawrence Kellner was named non-executive chairman.
Calhoun has been on the board 10 years. The roots of Boeing’s current crisis includes decisions made by the Board. Is Calhoun, an insider, the right person to pull Boeing out of its dive?
(Leeham News analysis to come.)
New Leadership to Bring Renewed Commitment to Transparency and Better Communication With Regulators and Customers in Safely Returning the 737 MAX to Service
CHICAGO, Dec. 23, 2019 /PRNewswire/ — Boeing [NYSE: BA] announced today that its Board of Directors has named current Chairman, David L. Calhoun, as Chief Executive Officer and President, effective January 13, 2020. Mr. Calhoun will remain a member of the Board. In addition, Board member Lawrence W. Kellner will become non-executive Chairman of the Board effective immediately.
The Company also announced that Dennis A. Muilenburg has resigned from his positions as Chief Executive Officer and Board director effective immediately. Boeing Chief Financial Officer Greg Smith will serve as interim CEO during the brief transition period, while Mr. Calhoun exits his non-Boeing commitments.
The Board of Directors decided that a change in leadership was necessary to restore confidence in the Company moving forward as it works to repair relationships with regulators, customers, and all other stakeholders.
By Scott Hamilton and Byran Corliss
Dec. 23, 2019, © Leeham News: The Boeing 737 MAX production shut down will be measured in “weeks,” Boeing told one of its unions.
But “weeks” is a highly open-ended description.
One supplier estimated for LNA that the suspension will be at least 60-90 days.
An aerospace analyst sees the halt lasting 3-6 months at a minimum.
LNA’s analysis does not see production resuming before the Federal Aviation Administration notifies Boeing that it has a date certain for recertification. It has announced no timeline, although published reports already suggest this could be any time from mid-February to well into March.
But these are speculative dates.
Dec. 23, 2019, © Leeham News: The Boeing 737 MAX crisis clearly dominated the news this year.
It’s felt like the aviation stories have been all-MAX, all-the-time.
Believe it or not, there was aviation news other than the MAX.
Dec. 21, 2019, © Leeham News: The International Association of Machinists District 751, the touch-labor union at Boeing’s Seattle-area plants, launched a campaign for a strike fund this week.
Nevertheless, the union announced its campaign on its Facebook page and a micro-website here.
The union urges members to contribute $50 per paycheck to raise $6,000 by 2024.
December 20, 2019, ©. Leeham News: We continue our series why e in ePlane shall stand for environment and not electric.
If our target is to lower the environmental footprint from air transport we must have a target that focuses just that, lowering the CO2 load from our airliners. Electric or Hybrid-electric aircraft are not the most efficient way to achieve this. There are better ways to this target.
By Bjorn Fehrm
December 19, 2019, © Leeham News: Qantas Airways declared the Airbus A350-1000 the winner for its project Sunrise last week. After two years of competition with Boeing’s 777-8, it was the preferred aircraft for what many say is the holy grail of airline routes, the Sydney-London route.
Many speculate it’s the delay in the availability of the 777-8 that was the deciding factor. We use our airliner performance model to check if this is true or if there are other factors that turned the A350-1000 the favorite.
Dec. 17, 2019, © Leeham News: Boeing announced yesterday a suspension in production of the 737 MAX line. It didn’t put a timetable to the shutdown.
But one aerospace analyst predicts the shutdown will be a minimum of three to six months.
The reason? Boeing listed as its new priority, after recertifying the airplane, as clearing out the inventory of 400 stored new-production aircraft.
SunTrust Robinson Humphrey made the prediction in a note issued after Boeing’s after-market announcement yesterday.
Below are excerpt of some of the research notes received by LNA: