Manufacturers still face tough recovery | Real Time Headlines

boeing company Another rebuilding year is coming.

A year ago, the company was once again in the spotlight over safety and quality concerns when a fuselage panel covered an unused emergency exit door. blown out in mid-air A nearly new Boeing 737 Max 9 from Alaska Airlines. The incident frightened those on board, but no one was seriously injured and the plane made a safe emergency landing in Portland, Oregon.

The key bolt is Not installed A preliminary report from the National Transportation Safety Board found that the plane was again contaminated before it left Boeing’s 737 factory in Renton, Washington. image Large American exporter.

Boeing shares have fallen more than 30% in the past 12 months, while the S&P 500 has risen nearly 27%.

Over the past 12 months, Boeing’s leadership has made significant changes, including Substitute Among its senior executives include new CEOsubjecting hundreds of factory workers, many of them new, to more rigorous training.

The company on Friday outlined its progress over the past year, including the launch of random quality audits of factories. Boeing says it has “significantly” reduced manufacturing defects on the 737 airframe. spirit aviation systems inc.which it’s buying backand reduce so-called traveling work, in which the tasks of building an aircraft are completed out of sequence to reduce defects. The manufacturer also said it addressed much of the feedback employees provided during meetings with management throughout the year.

The U.S. Federal Aviation Administration has tightened regulations on Boeing since the crash, limiting production of its best-selling 737 Max jet, but output remains below those levels. FAA Administrator Mike Whitaker says he will Step down on January 20The company was warned on Friday that “increased regulation will remain in place”.

He said Boeing’s turnaround “is not a one-year plan.”

“Boeing needs to make a fundamental cultural shift that puts safety and quality ahead of profits,” Whitaker said in a statement. “This will require continued effort and commitment from Boeing, as well as our unwavering review.”

That year saw the first of two fatal crashes involving the 737 Max, killing 346 people and marking Boeing’s worst crisis in recent years. one flight control system Both crashes were linked to the aircraft, which has been grounded around the world for nearly two years.

There have been other quality flaws over the years, including delays in the delivery of the 737 Max, the 787 Dreamliner and the two 747s that will serve as Air Force One.

Boeing has lost more than $30 billion since 2019, and its new chief executive will be tasked with ensuring the company can increase production without the shortcomings that have slowed deliveries in the past.

In August, the company introduced Kelly OrtbergThe former CEO of Rockwell Collins, who has three decades of aerospace experience, is the new CEO of Boeing Co., replacing Dave Calhoun.

Weeks after Ortberg took over, Boeing machinist On strike The nearly two-month shutdown ended after they approved a new four-year labor deal and a 38% pay increase. Some long-term workers seek Boeing Restoration of pensionsbut this is not part of the new labor agreement.

However, the strike has halted production of most of Boeing’s jets, although factories have resumed production in recent weeks. Boeing will focus in the new year Stablize production to get jetliners to airlines ahead of further increases, while Airbus continues to lead Boeing in deliveries.

Boeing raised billions of dollars this fall to deal with the crisis. Ortberg also said The company will cut Its labor force is about 170,000 people, accounting for 10% of its labor force. Notices started being sent out late last year. Ortberg said in October that the company must focus on its core business and would review its portfolio.

“I think we’ll be in a better position … to do less and do better than to do more and do poorly,” he said on his first earnings call in October.

He toured factories in his first weeks on the job and moved to the Seattle area, where much of Boeing’s production is concentrated, and won praise from airline executives who have continued to grow. angered The company is rolling out aircraft deliveries during the post-pandemic travel boom.

Bob Jordan, CEO, All-Boeing 737 Airlines southwestHe warned in an interview last month that Boeing’s recovery was “still in the early stages” but said he believed Ortberg understood the severity of the company’s problems.

“He doesn’t see it as a Band-Aid. He sees it as a complete change for Boeing,” he said.