Will it ever fly?

[Otto]

Starliner was sent up with the wrong clock?

Space force version of the 737 Max it appears.

[Guest]

I'm curious if any of you know who's paying for all of this. Is Boeing paying the airlines for the non-use of their planes? Is this coming out of Boeing shareholders' pockets? Or are the airlines eating the cost?

[Max]

I'm curious if any of you know who's paying for all of this. Is Boeing paying the airlines for the non-use of their planes? Is this coming out of Boeing shareholders' pockets? Or are the airlines eating the cost?

 

Complicated issue actually. BA will certainly be paying out $B. But airlines also seeing higher profits because of slower ASK growth.

[Otto]

Boeing CEO Muilenberg just fired, or resigned.

He'll still get his golden parachute, right? Which is more than the passengers on the Max planes in Ethiopia and Indonesia had, golden or not.

[mike carey]

I'm not sure the board gets it if they think that the CEO taking the high jump puts them in the clear,

https://www.abc.net.au/radionational/programs/breakfast/boing’s-ceo-sacked-after-737-max-aircraft-controversy/11824960

This was from Tuesday morning's breakfast show on Radio National.

[+ oldNbusted]

I'm not sure the board gets it if they think that the CEO taking the high jump puts them in the clear,

https://www.abc.net.au/radionational/programs/breakfast/boing’s-ceo-sacked-after-737-max-aircraft-controversy/11824960

This was from Tuesday morning's breakfast show on Radio National.

 

 

The stock market was demanding a sacrifice. The cynic in me says this is not about the original issue but about 'mishandling' the aftermath.

[mike carey]

The stock market was demanding a sacrifice. The cynic in me says this is not about the original issue but about 'mishandling' the aftermath.

That's no doubt true, and a sacrifice, whether this or a bigger one may assuage the stock market, but persuading foreign customers and foreign regulators may require something different.

[Guest]

Soon it will be raining planes.

 

It's raining planes again Maxi. A Boeing. 737-800...

 

(Can you pronounce 'pickle fork'?)

 

 

TEHRAN, Iran (AP) — A Ukrainian airplane carrying 180 passengers and crew crashed Wednesday near an airport in the capital, Tehran, state TV reported. There was no immediate word on casualties.

 

The plane had taken off from Imam Khomeini International Airport, the report said. The crash is suspected to have been caused by mechanical issues, it added, without elaborating.

 

An investigation team was at the site of the crash in southwestern outskirts of Tehran, civil aviation spokesman Reza Jafarzadeh said.

 

Flight data from the airport showed a Ukrainian 737-800 flown by Ukraine International Airlines took off Wednesday morning, then stopped sending data almost immediately afterward, according to website FlightRadar24. The airline did not immediately respond to a request for comment.

[Guest]

Wonder if our resident clown was involved in the Max design?

 

 

US regulators are seeking to fine Boeing $5.4m (£4.14m) for "knowingly" installing faulty parts on 737 Max planes.

 

The move comes after the release of internal messages that raised more questions about the jet's safety.

 

In one of the communications, an employee said the plane was "designed by clowns".

 

Boeing has been under scrutiny since the fatal crashes of two 737 Max planes, which killed 346 people.

 

https://www.bbc.com/news/business-51058929

 

• 
  

[Guest]

And a government bailout? More absolute nonsense.

 

After the latest revelations Maxi, a government bailout doesn't seem out of the question.

[+ g56whiz]

After the latest revelations Maxi, a government bailout doesn't seem out of the question.

Government bailout? They could axe The Maxi business (already “halted”) tomorrow and there’d still be enough Boeing left to keep it out of bankruptcy. Of course daring investors (like me from time to time) won’t be too pleased.

[MikeBiDude]

Awwww, poor guy ?

 

 

Ousted Boeing CEO exits with $80 million - but no severance

[Guest]

Government bailout? They could axe The Maxi business (already “halted”) tomorrow and there’d still be enough Boeing left to keep it out of bankruptcy. Of course daring investors (like me from time to time) won’t be too pleased.

 

BA is rooting around for a loan or loans...

 

(Bloomberg) -- Boeing Co. is talking to a group of banks about a potential loan as it deals with a production halt of its grounded 737 Max jetliners, according to people familiar with the matter.

 

Citigroup Inc. is leading the discussions between Boeing and a small group of banks, said the people, who asked not to be named because the details are confidential. The precise structure and timing of the loan is in flux, but the financing may be an investment-grade term loan, they said.

 

Representatives for Citi and Boeing declined to comment.

 

 

EDIT: BA is seeking $10 Billion +!!!

Edited January 21, 2020 by Oaktown

[+ oldNbusted]

Maybe this will help get a handout...

 

Boeing posts negative commercial airplane orders in 2019 for first time in decades

 

For the first time in decades, Boeing’s commercial airplane business lost orders over the course of an entire year, a stark example of just how much the 737 Max crisis has hurt the company.

For all of 2019, Boeing lost orders for 87 commercial airplanes, meaning it had more cancellations than new purchases, the company said Tuesday. The final tally included the cancellation of three orders in December when customers changed plans to buy 787 Dreamliners.

A Boeing spokesman said he wasn’t sure when the company last lost commercial plane orders for the year, but “it definitely has not happened in the last 30 years.”

The negative number is especially painful when compared with European rival Airbus, which logged orders for 768 new planes for 2019.

Even with 2019 being a slightly down year for Airbus, its order backlog remains a robust 7,482 commercial airplanes — an amount equal to almost 10 years worth of production. Boeing ended 2019 with a commercial airplane backlog of 5,406 planes.

In December, Boeing failed to log any 737 Max orders as airlines and aircraft leasing companies continued to steer clear of the grounded airplane. For the year, the 737 Max order book fell by 182 planes in 2019, with a hefty percentage of those cancellations due to the bankruptcy of Jet Airways, a low-cost carrier out of India that went out of business.

By comparison, Airbus racked up orders for 654 A320 aircraft, its popular single-aisle competitor to the Max.

Boeing’s 737 Max has been grounded since mid-March of last year. Getting the plane back in service is a primary focus of new Boeing CEO Dave Calhoun.

In an email sent to all Boeing employees on Monday, Calhoun said returning the Max to service is a top priority. “We’ll get it done, and we’ll get it done right,” he wrote in his email.

When Boeing will see a rebound in orders depends largely on when the Max is recertified by the Federal Aviation Administration. Calhoun has not said when he expects that to happen, though many airlines believe there is a reasonable chance the latest version of the 737 is back in service this spring.

Southwest Airlines has the Max returning to its schedule in early April while United and American Airlines plan to resume flying the plane in early June. However, all three airlines have shifted their schedules several times since parking their 737 Max planes and readily admit their current plans could change again.

Due to the Max grounding, Boeing delivered 380 commercial airplanes in 2019, the lowest level since 2007. The number is less than half the 768 planes Airbus delivered last year, a record for the European jet-maker.

[Guest]

WOW, I didn't see that! [There must be a roll eyes emoji here somewhere.]

 

You mean they might not fly ever again? Really? Promise? You should short BA shares! Go all in my friend!

 

I sure hope the shares haven't hit rock bottom. Would love to buy more in a month or so.

 

Anything else I missed? Oakie? Townie? I'm not sure how you'd suggest I refer to you. I'm not familiar with the name calling tactic, maybe you can help me out and I'll try to play along. I'm sure I'll never be as cool as you are though.

 

Why oh why would they halt Boeing shares Maxi????

 

CNBC:

Boeing shares are halted after reports the manufacturer doesn't expect regulators to sign off on the 737 Max until June or July. That's months later than the manufacturer previously expected. The delays pose another headache for carriers who have already missed one peak travel season.

 

https://www.barrons.com/articles/boeing-stock-is-halted-pending-news-737-max-jet-51579635059

[Max]

Why oh why would they halt Boeing shares Maxi????

 

CNBC:

Boeing shares are halted after reports the manufacturer doesn't expect regulators to sign off on the 737 Max until June or July. That's months later than the manufacturer previously expected. The delays pose another headache for carriers who have already missed one peak travel season.

 

https://www.barrons.com/articles/boeing-stock-is-halted-pending-news-737-max-jet-51579635059

 

Because that's what they do when there's big news. Shares ended the week about where they started. Have mentioned a time or two before, I bought for a decade, not a month or year. That said, I'm not loving the drip, drip, drip delay strategy.

[+ oldNbusted]

Boeing says it lost money in 2019, that hasn't happened since 1997.

[+ oldNbusted]

Boeing says it lost money in 2019, that hasn't happened since 1997.

[+ oldNbusted]

More corporate dirtbaggery, looks like the fired CEO will get more money than the direct relations of the victims.

 

Boeing's 737 MAX victims compensation fund raises questions

 

Boeing is navigating how to handle the $100 million compensation fund it set up for the families of crash victims, even as a pledge by its former CEO to fatten the fund seems uncertain.

Why it matters: Boeing is pulling out all stops to appease Wall Street over the grounding of its 737 MAX, but it is saying little about the issue of restitution for the families of the hundreds who died due to faulty technology onboard its flagship plane.

The backstory: Last year, Boeing made a big splash when it announced it would set aside $100 million for a victims' compensation fund. The move was among the first by the company to stymie the worst P.R. crisis in its 103-year history.

In October 2018, a Lion Air 737 MAX jet crashed into the Java Sea, killing all 189 people on board. Six months later, an Ethiopian Air 737 MAX flight crashed after takeoff, killing all 157 inside.

Those events prompted a global grounding of Boeing's biggest money-making jet — and a slew of more lawsuits.

There were immediate calls for Boeing's chief executive, Dennis Muilenburg, to step down, but — before he did so — he publicly pledged before a crowd of hundreds to contribute "substantial amounts" to the 737 MAX victims' fund.

At the time — November — Muilenburg said he planned to donate part of his own pay to the victims' compensation fund or a charity, wherever "the greatest need is at the time of vesting," a Boeing spokesperson clarified to Axios.

The compensation — Boeing shares, which Muilenburg still received as part of his exit package — will vest soon.

In response to a request for comment, Boeing said it had no update on Muilenburg's promise.

The state of play: Of the $100 million Boeing allocated to victims, Boeing subsequently said only half of that sum would be paid directly to families. In the same announcement, the company said it had hired victim compensation attorney Kenneth Feinberg to oversee those payouts, which is being evenly split among families who file claims. (Feinberg has worked on compensation for those impacted by 9/11 terrorist attacks, as well as the BP Deepwater Horizon oil spill.)

So far, 266 families have received $144,50o each, Camille Biros, a partner at Feinberg's firm, tells Axios. Lawyers representing the families say that's paltry.

What they're saying: "Half of the fund for relief is a problem," Bob Clifford, an attorney who's leading a consolidated case of more than 100 suits against Boeing, told CNN at the time of Boeing's announcement.

Mike Andrews, an attorney at Beasley Allen Law, who represents lawsuit against Boeing, tells Axios: "You've got $50 million for hundreds of families, as compared to the $63+ million compensation package that Dennis Muilenburg received."

"A lot of my clients wrote me and said: 'wow, do you see the amount [Muilenburg] got in his severance package? And my husband is dead,'" Floyd Wisner, an aviation attorney, tells Axios.

By the numbers: Muilenburg will not get any severance and will forfeit stock awards valued at $14 million, according to a recent company filing. But he still walked away with other stock and pension awards worth $62.2 million, the New York Times reported earlier this year.

What's new: Boeing has asked Feinberg to take a bigger role with the compensation fund.

He will figure out how to allocate the remaining $50 million — the plans for which, until now, remained unclear.

He will work with victims' families to figure out the appropriate way to use that money.

The $50 million probably won't be paid out directly to the victims' families, but rather toward a project that would honor the victims of the crashes and serve the impacted communities, which span more than 35 countries.

Feinberg's firm confirmed it was in "preliminary discussions" with Boeing about whether they will be involved in figuring out what to do with the additional funds.

Boeing said it has "started the process of engaging with families, governments, community leaders, and others about how best to allocate the $50 million set aside" victims of the two crashes."

[mike carey]

Holee fcuk! Happy I wasn't on board!

[MEDIA=twitter]1228716036117221376[/MEDIA]

From the comments, the aircraft exited the runway onto a taxiway although it doesn't look that way in the clip.

[+ nycman]

Holee fcuk! Happy I wasn't on board!

[MEDIA=twitter]1228716036117221376[/MEDIA]

From the comments, the aircraft exited the runway onto a taxiway although it doesn't look that way in the clip.

The A380 is an amazing plane indeed.

I avoided it at all costs for 5-6 years.

The thing looks like a fucking albatross.

Recently had no choice but to fly on it.

Now I fly on it every chance I get.

Edited February 16, 2020 by nycman

[mike carey]

Now I fly on it every chance I get.

I think they're great. It's what operates the QF SYD-LAX flights and the main choice on SYD/MEL to LAX. I missed the chance to fly on an Emirates A380 (QF ticket) from Christchurch to Sydney last month and ended up on an A330 from Auckland.

 

Who else flies them and where?

https://simpleflying.com/airbus-a380-routes-guide/

(Qantas no longer flies to Dubai.)

Edited February 16, 2020 by mike carey

[+ sync]

Holee fcuk! Happy I wasn't on board!

[MEDIA=twitter]1228716036117221376[/MEDIA]

From the comments, the aircraft exited the runway onto a taxiway although it doesn't look that way in the clip.

I would have deplaned on a gurney.

[Guest]

Predicting the future is hard, no way to know what the impact on share price will ultimately be. Certainly impossible to know in the short term.

 

Shares of BA dived more than 18% to around $189.08 on Wednesday. The stock is down more than 40% year to date.

[Max]

Shares of BA dived more than 18% to around $189.08 on Wednesday. The stock is down more than 40% year to date.

 

Precisely my point. Fortunately, my stop losses kicked in before my panic would have. No one is looking at their stock portfolio this week and having happy thoughts. Unless they were out of the market entirely.