Boeing announced it will increase output to 47 starting in October, which coincides with their timeline for the companies expected return to service schedule. While this may sound like good news for investors and employees alike, it may backfire tremendously.
The plan to push forward on their schedule seems like a tactic to not only manipulate the stock price by instilling false confidence in the company and the progress they feel is being made, but also to put pressure on the FAA and other regulatory agencies to certify the plane as quickly as possible. It seems that shareholders have ignored information, like boeing not being forthcoming with answers to regulators, and decided to buy. Boeing needed to do something to stop the bleeding as stock prices were falling dangerously close to $300 or below. They are currently sitting at about $380 and a stock price valuation between $450 and $500 once the plane is certified. You can bet Boeing wants that to happen as soon as possible.
The company has said they are still a few weeks from submitting their final package and the certification flight for the FAA is scheduled for October. However, if the FAA were to certify the plane and other regulatory agencies were to find additional issues during their independent reviews and certifications, it could be disastrous for all parties. Inda has said it wont fly until 2020, most airlines have pushed back return to service until 2020 or at very least December 2019. European and Canadian agencies do not seem to be in any hurry to certify the plane, which is good for the flying public, but bad for business. By boeing staying the course as of now, if they were to have to layoff or even shut down the plant temporarily, it would be able to shift blame to the regulators. Boeing would be able to say they were forced to do it and thereby still maintain stock prices. Also, a shutdown wouldnt hurt boeing at all. It would allow supplies to catch up so that when a full ramp up is ready they have the parts they need but December would be the least productive month with employees off the last 10 days. You sh– plant down or layoff around that time u save not only on payroll but if you extend it until after the 3rd of January, you save $5,000 per IAM employee.
My point of writing this is to say that no one wants a layoff or even a temporary shutdown. But Boeing is going to do what's best for Boeing and no one is in the clear yet. So I would plan financially for the worst and hope for the best.
11 replies (most recent on top)
"Shareholder driven company" hmmm...let's dig deeper into that statement.
Do you work at Boeing?
If yes, do you participate in the 401k
If yes, do you own Boeing stock?
If no, do you own any other mutual funds that may own Boeing stock?
There is a pretty good chance you are a shareholder, but, I bet your shares dont count in the "shareholder driven company" narrative. Just those other bad people who own stock.
Post ID: @113C9bhT-oeg
"Was told this is the best company in the world only to be MASSIVELY disappointed".
Newbie: Back in the day Boeing Was the best company In The World.
It's still a good company with great people, I am proud to work for Boeing.
Boeing has not been Boeing for decades now; the name is there for marketing only.
We have Share Holder driven leadership.
It’s no longer the innovated engineering company it was.
Engineering had to fight for the 787 project and that Scared Share Holders.
So management settles for mediocrity and sleight of hand to please Wall Street.
Management also kowtowed to the carriers our real customers.
With the mind set of Wall Street and using sleight of hand gave them the Max
Next: Upper Management’s corrupt state of mind
has trickled down to middle management giving us some toxic individuals.
As the old school professional management has retired
The environment has devolved
We still have some of the best Managers in the world.
But they have to tow the party line to keep their job,
and sometimes their moods reflect that.
Wow, so much animosity coming from a "company man" who trolls a Boeing layoff forum. And much rather be an autistic with a middle school education than a remedial educated elementary jackass. Since your comprehension is so dysfunctional, let me clarify...no where did I claim that layoffs were eminent or that or that this was a completely accurate analysis, only a theory based on factual information. And you dont need to be a genius to figure out that boeing stock is still a buy with such a valuation forecast. The point was to explain that until the plane is certified people still need to be cautious and prepared. Boeing has plans either way and none of them hurt them as much as it could hurt the workers who may be affected. Next time read before you comment.
Yes the literal hundreds of MBA’s and mathematicians working at Goldman and Meryl who’s sole focus is aerospace or even just Boeing analysis are getting completely fooled by this masterplan of stock manipulation, but don’t worry middle school educated Boeing man is on the case. Armed with only a 6th grade reading level, google finance, and intense insider knowledge on the going ons of not even his own shop; he alone will bring down the curtain. Coming Winter 2019: Autistic in Everett.
Many of the people on here are not id-ts. They are people with lives and families and mortgages and are genuinely concerned about their jobs. Yes, some are misguided and most of the posts are conjecture but that doesn't mean they dont have a right to voice their concerns. And I think most people understand that getting the planes back in the air isn't an overnight occurrence, but it's also naive to believe Boeing isn't willing to layoff or shut down if they dont get their way with the FAA or that they are not concerned about stock prices.
Ok, let's address the id–ts on here (of which there are many)
WHEN the MAX is certified, airlines can't just put these aircraft in service the next day. They make schedules months ahead for aircraft. At this point, it is highly unlikely they will fly by the holiday season, but not because Boeing is late. Even hitting the mark, they would not fly this year.
Add that to the stockpiles of MAX aircraft that need to be delivered. Again, this is. It an overnight occurance.
Y'all want Boeing to fail, I get it. But you are reading more into the articles than is there. This is not like flipping a switch.
I literally predicted this a month after they dropped production. Was told this is the best company in the world only to be MASSIVELY disappointed.
https://www.bloomberg.com/amp/news/articles/2019-09-15/u-a-e-doesn-t-expect-boeing-737-max-to-fly-again-this-year
The savings for boeing to not have to pay the $5000 bonus would be somewhere in the neighborhood of 45 to 50 million. That sounds like a drop in the bucket for them but when the company is bleeding its cash reserves dry, it's a significant savings.
What's the price tag for the 5k for union employees?
We were just talking about this the other day... a good wake up call.