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   Technology StocksBoeing keeps setting new highs! When will it split?

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To: SI Ron (Crazy Soup Man) who wrote (3438)11/1/2019 12:06:09 PM
From: Eric
   of 3517
Well the problem with the sims is that the software to drive them were not finished and certified way back in 2016.

The software and firmware in the Max is completely different than what is in the sims.

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To: Jeff Vayda who wrote (3445)11/1/2019 12:12:12 PM
From: Eric
   of 3517

That pilot in the jump seat knew exactly what to do.

Turn off two switches on the rear of the center throttle quadrant that controls power going to the Stabilizer jack screw.

The plane can be controlled in pitch perfectly manually.

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From: John Koligman11/8/2019 9:20:54 PM
   of 3517
When will Southwest announce they are changing their 'bet the company on one plane model' strategy and give Airbus some orders???

Southwest, American extend Boeing 737 Max cancellations until early March
Ganesh Setty
Southwest Airlines will remove all Boeing 737 Max planes from its flight schedule through March 6, while American Airlines will extend its cancellation through March 4.
Southwest had previously grounded the plane through Feb. 8, while American Airlines cut the 737 Max from its flight schedule through Jan. 16.
Southwest is the largest customer of the planes in the U.S. and had 34 in its fleet with 200 more on order at the time of the 737 Max grounding in March.
RT: Southwest Boeing 737 Max jets grounded 190327
A number of grounded Southwest Airlines Boeing 737 MAX 8 aircraft are shown parked at Victorville Airport in Victorville, California, March 26, 2019.
Mike Blake | Reuters
Southwest Airlines will remove all Boeing 737 Max planes from its flight schedule through March 6, delaying the plane’s return longer than any other U.S. carrier, the airline announced Friday. Separately, American Airlines also announced after the bell Friday that it will continue its 737 Max cancellation through March 4, resuming commercial service on March 5.

Southwest had previously grounded the plane through Feb. 8, while American Airlines cut the 737 Max from its flight schedule through Jan. 15.

The decision comes as the Southwest Airlines flight attendants union weighs suing Boeing over lost pay as a result of the prolonged 737 Max grounding. The airline’s pilots sued Boeing last month over what it said was more than $100 million in lost wages due to the grounding.

Southwest Airlines’ fleet is entirely made up of Boeing 737s, and it has had to cancel thousands of flights as a result of the grounding. It is the largest customer of the planes in the U.S. and had 34 in its fleet with 200 more on order at the time of the grounding in March. Southwest’s shares are up approximately 25% year to date.

Boeing came under further pressure in late October after documents surfaced detailing that engineers raised concerns about the 737 Max’s faulty MCAS flight-control system before two crashes that killed 346 people.

Southwest said it is unable to provide updated first-quarter guidance for 2020 due to the cancellation extension. Southwest’s shares were little changed following the decision, while Boeing’s shares dipped by about 1% in midday trading.

American also had its own share of 737 Max related cancellations and labor disputes this past summer, cancelling more flights than any other carrier in July. American’s shares are down approximately 4% year to date.

American said that any customer who previously booked a flight on a 737 Max through March 4 will have their reservation updated. Once the 737 Max is certified, American expects to run exhibition flights, or flights for American team members and invited guests only, prior to March 5.

The company’s shares dropped less than 1% off its closing price of $30.76 per share during extended trading. Southwest’s shares, meanwhile, remained unchanged from its closing price of $58.18.

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From: SI Ron (Crazy Soup Man)12/9/2019 1:46:20 PM
   of 3517
After 30 days no messages boards are removed from the stock pages, so here is one to keep this going for another month.

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From: John Koligman12/16/2019 6:57:03 PM
   of 3517
Looks like BA finally got the message that they are no longer in control in terms of when the plane flies, and that the FAA is going to take more time due to the publicity these crashes generated, and how the new system was certified. It's astounding that BA has built 400 of these since the grounding and they are sitting around burning cash for the company. The cash drain must be something to behold. Shareholders better hope more bugs are not found, as the longer this goes on the more precarious BA's financial position becomes.

Boeing will suspend 737 Max production in January


Boeing is planning to suspend production of the 737 Max after regulators said they don’t plan to lift a flight ban this year.The planes have been grounded since mid-March after two fatal crashes.The company isn’t planning to lay off or furlough employees at its plant in Renton, Washington.


Boeing to suspend 737 Max production: Sources

Boeing is planning to suspend production of its beleaguered 737 Max planes next month, the company said Monday, a drastic step after the Federal Aviation Administration said its review of the planes would continue into next year.

Boeing’s decision, made after months of a cash-draining global grounding of its best-selling aircraft, worsens one of the most severe crises in the history of the century-old manufacturer.

The measure is set to ripple through the aerospace giant’s supply chain and broader economy. It also presents further problems for airlines, which have lost hundreds of millions of dollars and canceled thousands of flights without the fuel-efficient planes in their fleets.

Boeing said it does not plan to lay off or furlough workers at the Renton, Washington, factory where the 737 Max is produced during the production pause. Some of the 12,000 workers there will be temporarily reassigned.

Boeing last week acknowledged that regulators’ review of the planes — grounded since March after two crashes killed 346 people — would last until the following year, longer than the end-of-year approval the Chicago-based manufacturer was targeting.

Just how long Boeing will keep its 737 Max production line halted was not immediately clear, because it will depend on when regulators clear the plane to fly again. U.S. airlines have taken the planes out of their schedules until at least March. American last week said it doesn’t expect to fly the planes before April.

“We know that the process of approving the 737 Max’s return to service, and of determining appropriate training requirements, must be extraordinarily thorough and robust, to ensure that our regulators, customers, and the flying public have confidence in the 737 Max updates,” Boeing said in a statement. “The FAA and global regulatory authorities determine the timeline for certification and return to service. We remain fully committed to supporting this process. It is our duty to ensure that every requirement is fulfilled, and every question from our regulators answered.”

Boeing had repeatedly warned investors that it could further cut or suspend production of the planes altogether if the flight ban lasts longer than expected, as it has. Boeing slashed production by 20% in April to 42 a month after regulators ordered airlines to stop flying the planes.


Boeing to halt 737 production in January 2020, won’t furlough workers

Close to 400 Max planes were in global fleets when regulators grounded the planes in mid-March after two fatal crashes in a span of five months. Since then, Boeing has produced some 400 more of the jetliners, which are parked at its facilities in Washington state and elsewhere. The grounding, now in its 10th month, has prevented Boeing from delivering planes to customers, and the company said halting production would help it deliver the stored planes when the grounding is lifted.

Boeing shares, which fell more than 4% during the regular session, were down 1% in after-hours trading. Also on Monday, it declared a quarterly dividend, holding it steady at $2.055 a share.

Spirit AeroSystems, which makes fuselages for the 737 Max, was down more than 4% postmarket.

Smaller suppliers with smaller cash cushions are particularly vulnerable to the production pause, analysts said.

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To: John Koligman who wrote (3454)12/16/2019 8:23:21 PM
From: SI Ron (Crazy Soup Man)
   of 3517
I Tweeted about that this morning.

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To: John Koligman who wrote (3454)12/17/2019 12:24:44 PM
From: bobby is sleepless in seattle
   of 3517
It's not they finally got the message, BA was fully aware they are at the mercy of FAA and hoping for a quicker resolution. IMO, FAA has made BA the scapegoat, not trying to dismiss the fact BA should have been better at their diligence. This is a wakeup call for greater scrutiny of the airline industry.

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To: bobby is sleepless in seattle who wrote (3456)12/17/2019 12:59:46 PM
From: John Koligman
   of 3517
Saw some articles on their cash burn this morning... If things got bad enough they would probably get government backing due to their importance as a defense contractor, but we are nowhere near that point and unlikely we will get there. I follow this stock as I owned it from around the time of the lithium battery fire days with the 787, and it had a huge ran from that point. Sold around 2 years ago.

MARKETSBoeing will still burn $1 billion a month on 737 Max even with production halt, JP Morgan says

Thomas Franck @TOMWFRANCK

Boeing will still burn more than $1 billion a month even after halting 737 Max production, according to J.P. Morgan analysis.Its overhead and labor costs won’t be going anywhere, and it’s expected to support its suppliers until the 737 Max is cleared for flight, analyst Seth Seifman says.“We estimate that Boeing is burning nearly $2 bn per month on the MAX but this will not drop to zero during the halt,” he says in a note to clients.


Boeing suspends 737 Max production—Here’s what three experts say to watch

Boeing will still burn more than $1 billion a month even after halting 737 Max production, according to J.P. Morgan.

Boeing’s decision to stop suspend production of the troubled aircraft was made in light of months of cash-draining groundings worldwide, but the company’s internal overhead and labor expenses will remain and will increase cash burn, analyst Seth Seifman wrote to clients.

For one, wrote Seifman, Boeing’s internal overhead and labor costs won’t be going anywhere. Further, the planemaker is expected to support its suppliers until the 737 Max is cleared for flight, a key expense it must endure to maintain future production capability.

“We estimate that Boeing is burning nearly $2 bn per month on the MAX but this will not drop to zero during the halt,” the J.P. Morgan analyst wrote. “We expect Boeing to support suppliers, which comprise ~65% of the 737 cost base, in order to preserve labor and production capabilities. For now, we assume ~50% of supply chain costs hang around, resulting in monthly cash burn that is still solidly > $1 bn.”

Boeing shares fell 1.3% in midday trading and headed for a fourth-straight negative day. The stock’s 2019 return briefly turned negative during the session.


Shaking up management may not solve Boeing’s problems, expert says

J.P. Morgan remains overweight Boeing shares, but the bank cut its price target on the company’s stock to $370 a share from $400 a share. That still implies 13% upside from Monday’s closing price of $327 a share.

Boeing announced Monday that it will suspend 737 Max production in January, a critical step after the Federal Aviation Administration said its assessment of the planes would continue into 2020. The decision represents the latest chapter in one of the planemaker’s worst crises in its 100-year history, which has resulted in the grounding of its bestselling aircraft after two crashes involving the planes killed 346 people.

The company added Monday that it doesn’t plan to lay off or furlough workers at the Renton, Washington, factory where the 737 Max is produced. What remains unclear, however, it just how long Boeing will halt production due to the federal investigation, causing headaches for commercial airline companies as well as the manufacturer’s suppliers.

Southwest Airlines and American Airlines announced this week the cancellations of thousands of 737 Max flights through early to mid-April, disrupting schedules during another busy holiday travel period — spring break and Easter.

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To: John Koligman who wrote (3457)12/21/2019 11:52:53 AM
From: Jamie153
   of 3517
Obviously it's not just Boeing, it's also its suppliers.

"CHICAGO -- As Boeing prepares to shutter much of a huge factory near Seattle that builds the grounded 737 Max jet, the economic hit is reverberating across the United States in places such as Wichita, Kansas, Stamford, Connecticut, and Cincinnati.

Those cities are home to some of 900 companies worldwide that supply parts for the troubled plane, which analysts say is the largest manufactured product exported from the U.S."

Confidence can't be restored until all its executives are replaced. They didn't just make a plane that can't fly but they lied to investors, the government, and the public about how bad it is and how long it will take to undo their incompetence.

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From: John Koligman12/22/2019 10:37:21 PM
   of 3517
At Boeing, C.E.O.’s Stumbles Deepen a Crisis
Dennis Muilenburg’s handling of the 737 Max grounding after two fatal crashes has angered lawmakers, airlines, regulators and victims’ families.

When Dennis A. Muilenburg, Boeing's C.E.O., testified before Congress in October, he faced withering criticism from lawmakers and crash victims’ families.Credit...Anna Moneymaker/The New York Times

By Natalie Kitroeff and David Gelles

Dec. 22, 2019Updated 10:09 a.m. ET

In a tense, private meeting last week in Washington, the head of the Federal Aviation Administration reprimanded Boeing’s chief executive for putting pressure on the agency to move faster in approving the return of the company’s 737 Max jet.

This was the first face-to-face encounter between the F.A.A. chief, Stephen Dickson, and the executive, Dennis A. Muilenburg, and Mr. Dickson told him not to ask for any favors during the discussion. He said Boeing should focus on providing all the documents needed to fully describe the plane’s software changes according to two people briefed on the meeting.

It was a rare dressing-down for the leader of one of the world’s biggest companies, and a sign of the deteriorating relationship between Mr. Muilenburg and the regulator that will determine when Boeing’s most important plane will fly again.

The global grounding of the 737 Max has entered its 10th month, after two crashes that killed 346 people, and the most significant crisis in Boeing’s history has no end in sight. Mr. Muilenburg is under immense pressure to achieve two distinct goals. He wants to return the Max to service as soon as possible, relieving the pressure on Boeing, airlines and suppliers. Yet the company and regulators must fix an automated system known as MCAS found to have played a role in both crashes, ensuring the Max is certified safely and transparently. Caught in the middle, Mr. Muilenburg has found himself promising more than he can deliver.

After the crashes, but before the plane was grounded, Mr. Muilenburg called President Trump and expressed confidence in the safety of the Max. He has repeatedly made overly optimistic projections about how quickly the plane would return to service, pushing for speedy approval from regulators. The constantly shifting timeline has created chaos for airlines, which have had to cancel thousands of flights and sacrifice billions of dollars in sales.

In his few public appearances, Mr. Muilenburg’s attempts to offer a sincere apology for the accidents have been clumsy, prolonging Boeing’s reputational pain. His performance has left lawmakers irate. The families of crash victims, convinced the company does not care about their loss, have repeatedly confronted him with posters of the dead.

The missteps led Boeing to one of the most consequential decisions in its 103-year history, when it announced on Monday that it was temporarily shutting down the 737 factory, a move that has already begun rippling through the national economy.

The Max is Boeing’s best seller, with tens of billions of dollars in future sales at stake. Boeing stock has fallen by 22 percent in this crisis, costing the company more than $8 billion and spreading pain throughout a supply chain that extends to 8,000 companies. On Friday, Spirit AeroSystems, which makes the Max fuselage, said it would stop production of the part next month.

The 737 Max jets under construction at Boeing’s assembly plant in Renton, Wash., early this year.Credit...Jason Redmond/Agence France-Presse — Getty Images

“Throughout this process our No. 1 priority has been safety,” Gordon Johndroe, a Boeing spokesman, said in a statement. “We have learned a lot this year and our company is changing.”

Last week, when Mr. Trump called Mr. Muilenburg to discuss Boeing’s problems, the chief executive assured the president that a production shutdown would only be temporary.

But Boeing still faces serious hurdles. The company has not delivered a complete software package to the F.A.A. for approval. In recent simulator tests, pilots did not use the correct emergency procedures, raising new questions about whether regulators will require more extensive training for pilots to fly the plane or whether the procedures needed to be changed, according to two people briefed on the matter.

And on Friday, a new space capsule Boeing designed for NASA failed to reach the correct orbit, another blow to company morale and a setback for the United States space program.

“If it was my call to make, Muilenburg would’ve been fired long ago,” Rep. Peter DeFazio, Democrat of Oregon and the chairman of the House Transportation Committee investigating Boeing, said in an email. “Boeing could send a strong signal that it is truly serious about safety by holding its top decision-maker accountable.”

From the earliest days of the grounding in March, shortly after the crash of Ethiopian Airlines Flight 302 and months after the first Max crash, off Indonesia, Mr. Muilenburg tried to put the episode behind him as swiftly as possible, telling airlines it would last just weeks.

Airlines like Southwest have not been able to reliably plan routes because of the shifting timeline Boeing has given for the 737 Max.Credit...Mark Ralston/Agence France-Presse — Getty Images

“By the time April rolled around, Boeing was telling us next week, next month,” Gary Kelly, the chief executive of Southwest Airlines, said in an interview. “We were a week away, weeks away, three weeks away.”

That misplaced optimism made it impossible for airlines including Southwest, which is Boeing’s biggest 737 customer, to reliably plan their routes. “It was really creating havoc,” Mr. Kelly said.

In August, regulators from Europe, Canada and Brazil flew to Seattle and joined F.A.A. officials for a meeting with Boeing. They were expecting to review reams of documentation describing the software update for the Max. Instead, the Boeing representatives offered a brief PowerPoint presentation, in line with what they had done in the past. The regulators left the meeting early.

“We were looking for a lot more rigor in the presentation of the materials,” said Earl Lawrence, the head of the F.A.A.’s aircraft certification office. “They were not ready.”

With delays mounting, Mr. Muilenburg missed a chance to smooth things over with key customers. In September, he attended a gathering of a club of aviation executives called Conquistadores del Cielo at a ranch in Wyoming, according to two people familiar with the trip. As the group bonded while throwing knives and drinking beers, Mr. Muilenburg took long bike rides by himself. It was typical behavior for Mr. Muilenburg, an introverted engineer who prefers Diet Mountain Dew to alcohol, but it left other executives baffled.

October brought a string of bad news for Mr. Muilenburg. The board stripped him of his title as chairman, a stinging rebuke of his leadership. The decision, the board said, would allow him to focus on the single most important job at the company: bringing the Max back to service.

About two weeks before Mr. Muilenburg testified in front of Congress for the first time, the company disclosed to lawmakers instant messages from 2016 in which a Boeing pilot complained that the system known as MCAS, which was new to the plane, was acting unpredictably in a flight simulator. Boeing discovered the instant messages in January, but Mr. Muilenburg did not read them at the time, instead telling the company’s legal team to handle them.

The messages included the pilot saying he “basically lied to the regulators (unknowingly).”

When Mr. Dickson learned of the messages in October, he sent a one-paragraph letter to Mr. Muilenburg demanding an explanation for “Boeing’s delay in disclosing the document to its safety regulator.”

Mr. Muilenburg and Mr. Dickson, who took over the F.A.A. this summer, spoke for the first time later that day. Mr. Muilenburg said Boeing hadn’t told the F.A.A. about the messages out of concern that doing so would interfere with a criminal investigation being conducted by the Justice Department, according to two people briefed on the call.

Mr. Dickson said the lack of transparency would only increase the regulator’s scrutiny of the company.

Stephen Dickson, who took over the Federal Aviation Administration this year, has had a tense relationship with Mr. Muilenburg.Credit...Ting Shen for The New York Times

Still, Mr. Muilenburg continued to project confidence, telling investors on an earnings call in October that he expected regulators to begin approving the Max by the end of the year. The company had just fired Kevin McAllister, the chief executive of Boeing’s commercial division who had been overseeing work on the Max.

Despite Mr. Muilenburg’s assurances, airline discontent was growing. The next day, American Airlines joined a chorus of Boeing customers complaining about the growing costs of the Max crisis. Doug Parker, American’s chief executive, said on a call with investors that he was working to “ensure that American is compensated for the lost revenue that the Max grounding has caused, the missed deadlines and extended grounding.”

“We’re working to ensure that Boeing shareholders bear the cost of Boeing’s failures,” Mr. Parker added. “Not American Airlines’ shareholders.”

In two days of congressional hearings at the end of October, Mr. Muilenburg faced withering criticism from lawmakers, who told him to resign or take a pay cut. Mr. Muilenburg said it was up to the board to make decisions about his multimillion-dollar compensation. He invoked his upbringing on an Iowa farm so many times that he elicited jeers from family members of crash victims who were present.

In an interview on CNBC after the hearings, the chairman of Boeing’s board, David Calhoun, said the board was confident in its chief executive.

“From the vantage point of our board, Dennis has done everything right,” Mr. Calhoun said. “If we successfully get from where he started to where we need to end up, I would view that as a very significant milestone and something that speaks to his leadership and his courage and his ability to execute and get us through this.”

Mr. Muilenburg continued to press the F.A.A. In early November, he called Mr. Dickson to ask whether he would consider allowing the company to begin delivering airplanes before they were cleared to fly. The administrator said he would look into it but made no commitments, according to an F.A.A. spokesman.

In an apparent misunderstanding, Mr. Muilenburg took the call as a green light. The next Monday, the company put out a statement saying it could have the plane to customers by the end of the year.

Mr. Dickson told colleagues that he had not agreed to that timeline and felt as though he was being manipulated, according to a person familiar with the matter. That week, he put out a memo and a video urging employees to resist pressure to move quickly on the Max approval.

Boeing has pushed to deliver the Max to airlines before it has been cleared to fly again. Credit...Lindsey Wasson for The New York Times

This month, anxiety levels rose at Boeing’s factory in Renton, Wash. Several key tests had not yet been completed, and European regulators would soon leave work for the holidays and not return until the beginning of January. In calls with F.A.A. officials, Boeing engineers began to float an idea for speeding the process: Perhaps the company should ask the agency to break with its foreign counterparts and approve the Max alone?

The suggestion alarmed some F.A.A. officials, who worried that approving the Max without agreement from other regulators would be untenable, according to two people familiar with the matter. When they called Mr. Dickson to tell him of Boeing’s plans, he balked at the suggestion and eventually the company backed down.

A week later, Mr. Dickson brought Mr. Muilenburg into the agency’s Washington headquarters for their first in-person meeting.

There, Mr. Dickson said he had done the math, and there was no way the Max could fly by the end of the year.

When Mr. Muilenburg brought up the logistics of delivering Max jets to customers, Mr. Dickson would not discuss the issue, two people familiar with the matter said. Boeing’s representatives said they might need to consider temporarily shutting down production. Mr. Dickson told them to do what they needed to do, saying the agency was focused on conducting a thorough review.

Four days later, Boeing announced it would bring the 737 factory to a halt. There was no discussion of removing Mr. Muilenburg as chief executive at last week’s board meeting in Chicago where the shutdown was debated, according to three people briefed on the meeting.

The challenges facing Mr. Muilenburg extend beyond returning the Max to service and the botched space capsule launch on Friday. The F.A.A. is aware of more potentially damaging messages from Boeing employees that the company has not turned over to the agency. Other important planes are behind schedule. New defects have been found on older models of the 737. Boeing lost two major pieces of business to Airbus, its European rival, this month.

“This hasn’t been their best and finest hour,” said Mr. Kelly, the Southwest Airlines chief executive. “There’s mistakes made and they need to address those.”

With the first anniversary of the Ethiopian accident approaching in March, Boeing recently asked a representative for the families of crash victims if it would be appropriate for Mr. Muilenburg to attend the memorial. They said no.

“He is not welcome there,” said Zipporah Kuria, whose father, Joseph Waithaka, was killed in the second crash. “Whenever his name is said, people’s eyes are flooded with tears.”

David Gelles is the Corner Office columnist and a business reporter. Follow him on LinkedIn and Twitter. @dgelles

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