… Boeing’s Jack Welch-trained executive cadre continues to astound.
Boeing lost $1.1 billion on Trump Air Force One contract; CEO regrets deal
https://www.cnbc.com/2022/04/27/boeing-lost-billion-dollars-…
intercst
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Boeing lost $1.1 billion on Trump Air Force One contract; CEO regrets deal
Boeing COULD have turned it down. (Increase the price. Or ???)
There’s a LOT of cachet in being able to point to an AF ONE and saying “Boeing built that plane”.
CEO’s regret statement lacks legitimacy.
1 Like
Boeing COULD have turned it down. (Increase the price. Or ???)
There’s a LOT of cachet in being able to point to an AF ONE and saying “Boeing built that plane”.
So what? That doesn’t do anything for shareholder investment returns.
I think the Prez snookered Boeing. Air Force One “has” to be a 4-engine jet for safety by the Air Force specs. The only alternative was the Airbus A380 made in Europe. Not likely we’d go foreign for Air Force One.
Boeing could have stood firm for a better deal, but suffered for Jack Welch-trained leadership.
intercst
4 Likes
Boeing COULD have turned it down. (Increase the price. Or ???)
There’s a LOT of cachet in being able to point to an AF ONE and saying “Boeing built that plane”.
CEO’s regret statement lacks legitimacy.
On the face of it, contracts where you lose money are bad contracts. But remember, the previous CEO Dennis Muilenburg was a protegee’ of James McNerney, who learned business management at the knee of Jack Welch. Muilenburg was a outstanding Welchian CEO in that he stripped vast amounts of value out of the company and into his own pocket.
As a Welchian, Muilenburg knows that announcing big contracts is more important to the stock price–and hence his personal compensation–than delivering on big contracts, which is the next guy’s problem. At the time, the POTUS was tweeting the new Air Force One was costing too much and wanted the contract canceled. So Muilenburg signed the deal to great fanfare and cashed his stock options.
Similarly, there have been persistent quality control problems at Boeing’s South Carolina plant to the point where:
One 787 customer – Qatar Airways – went so far as to refuse to accept any 787 Dreamliners manufactured in South Carolina, requiring Boeing to provide it with Dreamliners manufactured at its Everett, Washington facility.
https://www.fitsnews.com/2021/10/17/more-boeing-blues-for-so…
https://www.postandcourier.com/business/airline-surveys-poin…
Muilenburg’s to his customers hating the quality of the 787s built in SC was to move ALL of the 787 production to lower cost SC. That caused a bump in the “earnings” which caused a bump in Muilenburg’s wallet.
But 787 production remains a crap show as airlines begin to grow tired of Boeing’s QC problems and are looking to Airbus instead:
https://www.reuters.com/business/aerospace-defense/boeing-re…
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Netflix has a good documentary
Downfall: the case against Boeing
Basically highlights how the company went from being the premier, most trusted airplane manufacturer in the world to producing the 737 Max and trying to blame the crashes (which were Boeing’s fault) on the pilots.
sf, thinks the Airbus A350 is the best plane in the sky. By far.
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Basically highlights how the company went from being the premier, most trusted airplane manufacturer in the world to producing the 737 Max*** and trying to blame the crashes (which were Boeing’s fault) on the pilots.
sf, thinks the Airbus A350 is the best plane in the sky. By far.
Well, but…
A. That take off in NYC (2 months + 1 day after America’s “9/11”) where an Airbus plane got its glued on tail wigwagged off by a pilot flying into heavy turbulence caused by a jumbo that had taken off minutes earlier.
https://duckduckgo.com/?q=nyc+airbus+crash&t=h_&ia=w…
AND
B. Are Airbus planes still being subsidized by the EU? If they are so superior, why do they need EU tax monies???
https://duckduckgo.com/?q=eu+subsidies+to+airbus&t=h_&am…
(***The 737 MAX story IS a world class FUBAR; I haven’t read it anywhere, but I gotta believe there were LOTS of reports from the already HUNDREDS of flights of the Max plane that pilots had to hit the kill switch to smack down the computer. Have to be. For Boeing not to share the “How To Emergency Kill the Computer” is beyond comprehension.)