Boeing Chief Financial Officer Brian West did not disclose the precise value of
the additional charges, which will be announced as part of the company's
first quarter earnings,
but margins at Boeing's defense business would be negative as a result.
A New Boeing Concept “Red Income” we are losing money but we have income.
https://www.reuters.com/business/aerospace-defense/boeing-take-charges-kc-46-tanker-over-quality-issue-finance-chief-2023-03-22/?rpc=401&
I am sure this Airforce One contract is in far better shape... Oh, to be a nepo Boeing executive...making good money doing nothing good...
There are still untold millions in pending charges to be applied to the tanker program due to both production issues and how the parts have been accounted for. Several of the initial tankers are undeliverable much like the first few 787's but show on the books as inventory. Secondly, years of managers trying to maintain their scorecards pushed employees to overlook costs discrepancies and only report favorable adjustments.
As Boeing moves these jobs to India the people that are being laid off will have the blame neatly allocated to them. Historically, Boeing has come through for our military but they simply aren't in a position this time, the contact should of went to Airbus.
Looks like another quarter of huge losses. They have additional problems on the commercial side with 737 and 787 deliveries. The only way they can make money with the 737 is by increased production, but they can’t migrate. And they continue to find problems with the 787 build. Which is their only popular airplane now. This company is in so much financial trouble. I don’t think investors realize it. But somehow we’ve got money to pay Calhoun a $5 million plus bonus.
You just know that somebody, somewhere in senior leadership looked at the current process for coating the fuel tanks and said, "But if we do it this NEW way, according to our cost-down, Kan Ban, Lean, TPS, OBEYA models, we can still meet the requirement AND save money at the same time! Yahtzee!"
Boeing bids all these defense program as if they have this highly skilled and experienced staff when in reality they have a team of people that have never worked on a new program before and have a little if any experience. You get what you pay for.
How much money did Boeing pay to members of Congress for the tanker contract
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So sorry USAF... Should have stayed with Airbus tanker like you wanted before corrupt Boeing and Congress messed things up for you.