Boeing 737 Max Groundings and Safety Concerns (2019)

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    Boeing Will Sell $19 Billion in Stock Amid Costly Strike

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    The aerospace company, locked in a standoff with striking workers, is seeking to shore up its balance sheet and avoid a credit rating downgrade.Boeing on Monday began to raise roughly $19 billion by selling stock, an attempt to shore up its finances as a costly and disruptive worker strike weighs on the plane maker’s balance sheet.The sale comes shortly after the aerospace giant reported a $6.1 billion loss in the last quarter and said it was cutting about 17,000 jobs. A weekslong strike by Boeing machinists is costing the company tens of millions of dollars each day, according to analyst estimates, adding to the financial strain created by long-running production and quality issues.The fund-raising aims to stave off a potential credit rating downgrade, which could make it more expensive for the company to borrow money. Boeing has about $58 billion in debt. S&P Global Ratings said this month that it was considering lowering Boeing’s credit rating to “junk” status, depending on how long the strike continues.Boeing’s shares fell about 1 percent Monday morning. The company’s stock has fallen more than 40 percent this year.Last week, Boeing’s largest union, which represents about 33,000 workers, rejected a tentative labor contract, extending a strike that began last month and has halted airplane production at crucial plants in the Seattle area. The proposed agreement did not address a frozen pension plan that workers were seeking to restore.Boeing indicated in regulatory filings this month that it planned to raise as much as $25 billion by selling stock or debt over the next three years, and the company entered into a $10 billion credit agreement with a group of banks. It described the plans as “two prudent steps to support the company’s access to liquidity.”The plane maker hasn’t reported an annual profit since 2018. Before the machinists’ strike started to weigh on the company, two fatal crashes of Boeing’s 737 Max in 2018 and 2019 cost it billions of dollars and severely damaged its reputation. Concerns about the safety of Boeing’s commercial planes resurfaced in January, when a door panel on a 737 Max 9 jet blew open during an Alaska Airlines flight.The stock sale on Monday covers only the company’s near-term needs, “without an extended strike or further production disruptions,” analysts at Wells Fargo said in a research note. More

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      Safety Board Warns of Rudder Control Defect in Some Boeing Planes

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      The National Transportation Safety Board said it had found a defective part in the system that helps steer the aircraft after investigating an incident at Newark airport.The National Transportation Safety Board on Thursday issued a safety alert and recommendations for some Boeing planes, warning that a defect could cause the rudder control system that helps steer the aircraft to jam.The warning applies to some of the company’s 737 Max and 737NG jets. It stems from the agency’s investigation into a United Airlines Boeing 737 Max 8 that experienced “stuck” rudder pedals while landing at Newark Liberty International Airport in February.The safety board said it had been notified that more than 350 of the defective parts were delivered to Boeing, but it was not immediately clear how many planes with the affected component might be in service. The Federal Aviation Administration said it believed United was the only U.S. operator that had the faulty parts, and United said it had removed the components from its nine affected planes.The safety board urged the F.A.A. to determine whether the faulty parts should be removed from service and, if so, to mandate that U.S. operators replace them. It also recommended informing international aviation regulators to encourage similar actions. The F.A.A. said in a statement that it had “been monitoring this situation closely” and would convene a panel to determine its next steps.The warning adds to a string of safety woes for Boeing, which is already under intense scrutiny from regulators after incidents including a panel that blew off a jet midair this year. An audit conducted by the F.A.A. after that incident found dozens of problems throughout the 737 Max’s manufacturing process.The safety board opened its investigation into the rudder control issue on Feb. 6, after the captain of a 737 Max 8 had to use the nose wheel steering tiller to maintain control of the plane when the rudder pedal became stuck while landing at Newark. A plane’s rudder control is primarily used on takeoff and landing to maintain the direction of the plane’s nose.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Boeing Workers Go on Strike: What to Know

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      Thousands of Boeing workers in Washington State and Oregon walked off the job on Friday in the first strike at the plane maker in 16 years.Boeing is facing a strike that threatens to disrupt plane production, after workers overwhelmingly voted to reject a tentative contract their unions had reached with the company.Thousands of workers walked off the job in the Seattle and Portland, Ore., regions on Friday, a move that is likely to stall operations at factories where Boeing manufactures most of its commercial planes. While the deal their unions struck with the company on Sunday included double digit pay raises and improvements to benefits, 95 percent of workers rejected the proposed contract, opting instead to leverage a strike to push for more.Here’s what else to know about the company’s first strike since 2008:How many workers are on strike?Boeing, one of the largest exporters in the United States, employs a total of nearly 150,000 people across the country — almost half of them in Washington State — and more than 170,000 people worldwide. The contract that spurred Friday’s strike covers about a fifth of the company’s employees.A vast majority of the 33,000 workers under the contract are represented by District 751 of the International Association of Machinists and Aerospace Workers, Boeing’s largest union. Most of that union’s members work on commercial airplanes in the Seattle area. Workers in the Portland, Ore., area, who are represented by the union’s smaller District W24, are also on strike.What prompted them to walk off the job?The leaders of the unions representing the workers on strike reached a tentative deal with Boeing on Sunday that would have secured raises of 25 percent over four years, along with improvements to health care and retirement benefits. The company also committed to building its next commercial plane in the Pacific Northwest.But workers’ overwhelming rejection of that tentative contract reflects their willingness to fight for more, in large part to make up for concessions made in past talks, including the loss of pension benefits a decade ago. The unions started the talks by asking for raises of 40 percent.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Starliner Capsule Returns, but Boeing’s Space Business Woes Remain

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      The capsule, which returned without astronauts, and other space programs at Boeing have suffered many delays and cost overruns.Space programs are a small part of Boeing’s business, which is dominated by sales of commercial and military planes and equipment. But the work is a point of pride: Boeing has long been involved in spaceflight, going back to the first mission to take an American to space.But Boeing’s efforts to add to that space heritage are in doubt.The company’s Starliner capsule returned to Earth safely from the International Space Station on Friday night, but without the two astronauts it took up there in June because NASA was concerned about thrusters on the capsule that had malfunctioned before it docked at the station.A decade ago, NASA chose Boeing and an upstart rival, SpaceX, to ferry astronauts to and from the space station. SpaceX has since carried out seven of those missions and will bring home the astronauts Starliner left behind, while Boeing has yet to complete one. And with the station set to retire as soon as 2030, time is running out.“It’s unclear if or when the company will have another opportunity to bring astronauts to space,” Ron Epstein, an aerospace and defense analyst at Bank of America, said in a research note last month. “We would not be surprised if Boeing were to divest the manned spaceflight business.”On Thursday, asked to comment on Starliner’s problems and the future of its space business, Boeing responded with this statement: “Boeing continues to focus, first and foremost, on the safety of the crew and spacecraft. We are executing the mission as determined by NASA, and we are preparing the spacecraft for a safe and successful uncrewed return.”Boeing’s troubles could be a setback not only for the company but for the U.S. space program more broadly, which wants multiple private companies available to ably support its efforts.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Boeing Says It’s Changing Type of Panel That Blew Off Alaska Airlines Jet

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      The company told regulators the changes in design and production of the door plugs would allow its warning systems to detect malfunctions.Boeing officials told regulators on Tuesday that the aircraft maker would make changes to how it designed and produced the type of panel that blew off an Alaska Airlines jet shortly after takeoff in January.Boeing told regulators that it was redesigning its door plugs — the panels that replace emergency-exit doors in certain design configurations that create more seats — so that its warning systems could detect any malfunctions.The design changes are expected to be “implemented within the year,” said Elizabeth Lund, a senior vice president for quality at Boeing, who testified on Tuesday at an investigative hearing held by the National Transportation Safety Board, an independent government investigative agency.The hearing on Tuesday revealed that Boeing employees removed a door plug from what would later be the Alaska Airlines jet to repair damaged rivets, but without any required internal authorization or paperwork detailing the removal of the panel — a critical structural element. The safety board’s investigation found earlier this year that the plane, a 737 Max 9, left the Boeing factory in Renton, Wash., missing bolts that should have held in place the door plug that blew off midair.The safety board’s chairwoman, Jennifer Homendy, suggested at the hearing that the work culture at Boeing prioritized meeting production schedules over safety standards, and led to an overtaxed work force and lapses in the production process.On Tuesday, Ms. Homendy read quotes from the board’s interviews with mechanics who have worked at the Boeing facility for years. The workers testified to board investigators that they were regularly pressured into working 10 to 12 hours a day, six to seven days a week, Ms. Homendy said.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Justice Dept. Says Boeing Violated 2021 Settlement Over Max Plane

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      The department said the company had failed to design and enforce an ethics program to prevent violation of U.S. fraud laws.The Department of Justice said on Tuesday that Boeing was in violation of a 2021 settlement related to problems with the company’s 737 Max model that led to two deadly plane crashes in 2018 and 2019.In a letter to a federal judge, the department said that Boeing had failed to “design, implement and enforce” an ethics program to prevent and detect violations of U.S. fraud laws in the company’s operations. Creating that program was a condition of Boeing’s settlement, which also carried a $2.5 billion penalty.The determination by the Justice Department opens the door to a potential prosecution of a 2021 criminal charge accusing Boeing of conspiracy to defraud the Federal Aviation Administration, though Boeing can contest Tuesday’s decision.In a statement, Boeing said that the company believed that it had honored the terms of the settlement, adding that it was looking forward to the opportunity to respond.“As we do so, we will engage with the department with the utmost transparency, as we have throughout the entire term of the agreement,” Boeing said in its statement.The Justice Department declined to comment. Paul G. Cassell, a lawyer representing families of victims of the fatal plane crashes, said that his clients were planning to meet with the government on May 31 to discuss next steps in the case.When the government reached its settlement with Boeing in January 2021, many families of the crash victims said that the Trump administration had been too lenient on the aircraft manufacturer.“This is a positive first step and, for the families, a long time coming,” Mr. Cassell said. “But we need to see further action from D.O.J. to hold Boeing accountable.”The crashes of the 737 Max 8 planes in Indonesia and Ethiopia killed 346 people, prompting the F.A.A. to ground the entire 737 Max fleet. An investigation found that both crashes involved mistaken triggering of a maneuvering system designed to help avert stalls in flight.In another settlement, the Securities and Exchange Commission said that Boeing had offered misleading reassurances about the safety of the 737 Max in public statements after both crashes, despite knowing that the maneuvering system had posed a continuing safety issue.The Justice Department reached its finding at a tumultuous time for Boeing, which has faced intense regulatory scrutiny since a door panel blew out of a 737 Max 9 plane during an Alaska Airlines flight from Portland, Ore., in January. In March, the company said its chief executive, Dave Calhoun, would step down at the end of the year, along with Stan Deal, the head of the division that makes planes for airlines and other commercial customers.Mr. Calhoun replaced Dennis A. Muilenburg, who led the company during the 2018 and 2019 crashes. Boeing fired Mr. Muilenburg, whose performance during the crisis angered lawmakers and alienated victims’ families.Mark Walker More

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      Delta Flight Loses Emergency Slide After Takeoff From J.F.K.

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      The plane had taken off from Kennedy International Airport when crew members noticed problems near its right wing, Delta said. What became of the slide is unknown.A Boeing 767 plane flown by Delta Air Lines lost an emergency slide on Friday, prompting it to return to New York not long after taking off, officials said.The flight, Delta Air Lines 520, had left Kennedy International Airport in New York and was headed to Los Angeles when its crew discovered an issue related to the aircraft’s right wing emergency exit slide. Crew members also detected an unusual sound near the wing, Delta Air Lines said.Pilots declared an emergency to air traffic controllers and the flight returned to Kennedy and landed safely, the airline said.After the plane landed, it became apparent that the aircraft’s emergency slide had “separated” from the plane, Delta Air Lines said. The plane was removed from service and the airline said it would “thoroughly evaluate the aircraft.”“Delta flight crews enacted their extensive training and followed procedures to return to J.F.K.,” the company said in a statement, adding that it would “fully cooperate” with retrieval efforts and investigations.It was not clear on Saturday what caused the slide to detach or where it had fallen.The Federal Aviation Administration said on Friday that it would investigate what happened.The flight, which had been scheduled to take off at 7:15 a.m., returned to the airport at 8:35 a.m. after its crew reported “a vibration,” the F.A.A. said in a statement. The 176 passengers disembarked and traveled to Los Angeles on a different plane.Slides have previously fallen from planes while midair. In July, an emergency slide from a United Airlines-operated plane crashed into a home near O’Hare Airport in Chicago. In 2019, a slide from a Delta plane fell into a yard in Massachusetts.A spokesman for Boeing referred inquiries about the plane that lost its slide on Friday to Delta Air Lines. That plane, a version of the Boeing 767, was manufactured in 1990.With travel shut down in 2020, American Airlines announced at the time that it had moved forward with plans to retire its 767 fleet.Boeing has also faced heightened scrutiny recently over the manufacturing of its Boeing 737 Max jets. Two crashes in 2018 and 2019 that killed nearly 350 people raised safety concerns about the planes.In January, a fuselage panel tore off an Alaska Airlines flight, exposing passengers to a frightening ordeal as winds whipped through the cabin. Nobody was injured, but the pilots were forced to make an emergency landing, and the F.A.A. grounded some 170 Boeing 737 Max 9 planes as a precaution.Since then, Boeing has said it would make changes to its quality control processes and regulators have pushed the manufacturer to make improvements to safety. More

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      Southwest Quits Four Airports in Cost-Cutting Drive

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      The airline expects fewer deliveries of Boeing planes than before, and cited “significant challenges” in achieving growth plans because of it.Southwest Airlines is ceasing operations at four airports, and reducing flights from others, in an effort to cut costs after its growth plans were curtailed by fewer than expected plane deliveries from Boeing.The airline, which flies only Boeing 737 planes, said on Thursday that delays from the embattled aircraft manufacturer were behind its struggles. Southwest reported a loss of $231 million for the first quarter, worse than analysts expected, sending its share price down 10 percent in early trading.To cut costs because of its curtailed growth plans, Southwest said it would cease operations at four airports from early August: Bellingham International Airport in Washington State, Cozumel International Airport, George Bush Intercontinental Airport in Houston, and Syracuse Hancock International Airport. It would also “significantly restructure” its flights from other airports, most notably by reducing flights at Hartsfield-Jackson Atlanta International Airport and Chicago O’Hare International Airport.The airline’s woes were another ripple effect of the incident on Jan. 5, when a panel of a Boeing 737 Max 9 jet blew out midair during an Alaska Airlines flight. The event led to the temporary grounding of the popular jet model and a slowdown in production as Boeing has faced increased regulatory scrutiny over its quality control.Southwest said it expected to get 20 new Boeing jets this year, down from the 46 it had previously anticipated. The timing of the deliveries depends on the Federal Aviation Administration, which has capped Boeing’s production while it gets quality issues under control.“The recent news from Boeing regarding further aircraft delivery delays presents significant challenges for both 2024 and 2025,” Southwest’s chief executive, Bob Jordan, said in a statement.The airline said it would limit hiring and end the year with 2,000 fewer employees. It also said it planned to put fewer planes out of service than it previously planned.On Wednesday, Boeing reported a $355 million loss for the first quarter, a steep setback that was nonetheless less than analysts expected.Demand for travel remains robust, and while other airlines are trying to manage the production slowdown at Boeing, Southwest appears more adversely affected than its rivals, many of which also buy planes from Airbus.American Airlines reported a quarterly loss of $312 million on Thursday, but provided a better-than-expected forecast for earnings in the current quarter and maintained its growth target for the year.Alaska Airlines and United Airlines recently reported narrower losses than expected in the first three months of the year, and said that they would have reported profits if the Boeing 737 Max 9 had not been grounded. Delta Air Lines was the only major airline to report a profit in the first quarter. More

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      You Don’t Have to Freak Out About Boeing Planes

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      “Ah, it’s a Boeing Max,” I exclaimed to my travel companions after we boarded our plane a few weeks ago. I looked to see if we were seated next to a hidden door plug panel like the one that blew out on Alaska Airlines Flight 1282 in January. We weren’t, but joining a trend on social media, we cracked a few jokes at Boeing’s expense: “Maybe they can charge extra, saying it’s potentially an even bigger window seat.”The Federal Aviation Administration recently informed the passengers on that ill-fated Alaska Airlines flight that they may have been crime victims. The agency hasn’t explained why, but Boeing has told the Senate that it cannot find documentation of exactly how the door plug was removed and reinstalled, even though the company acknowledged it is supposed to have kept such records. Facing all this, the company announced last week that it was replacing its chief executive. But the bad news wasn’t over: On Thursday, a New York Times investigation reported a disturbing pattern of sloppy safety procedures and dangerous cost-cutting. One expert who had spent more than a decade at Boeing told The Times, “The theme is shortcuts everywhere — not doing the job right.”Is it any wonder that some travelers are trying to avoid Boeing planes? Kayak, the travel booking site, noticed an uptick in the number of people trying to weed them out; it recently made that search filter more prominent and even added an option to specifically avoid certain models.Boeing’s problems, great as they are, are just one reason that consumers might be wary of taking flight. United Airlines now also faces scrutiny for a series of safety incidents, although many experts say the issues there do not appear to be systemic. The biggest danger of all may be understaffed air traffic controllers and overstuffed runways, which lead to far too many near misses.Personally, I am not worried about flying and other than cracking some ill-advised jokes, I have not changed my behavior. That’s why I hadn’t bothered to check whether I’d be flying on a Boeing Max, or any type of Boeing plane, until after I boarded.The trajectory of Boeing as a corporation, however, is another matter. It’s going to take a lot more than a shuffle at the top to fix that company’s problems. But the fact that Boeing managed to cut as many corners as it did is testament to the layers and layers of checks, redundancies and training that have been built into the aviation industry. Aviation safety is so robust because we made it so.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More