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Boeing CEO Dave Calhoun told CNBC the company needs to slow down and put safety before speed. Calhoun announced Monday he will be stepping down from the planemaker by the end of the year. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementBoeing has been mired in a quality control crisis, and even the company's outgoing CEO says that it has a culture of rushing production. Boeing CEO Dave Calhoun announced in a letter to staff on Monday that he would be stepping down from the company by the end of the year.
Persons: Dave Calhoun, Calhoun, Organizations: CNBC, FAA, Service, Boeing, Alaska Airlines Boeing, Max, Business
Boeing CEO Dave Calhoun speaks to reporters as he departs from a meeting at the office of Sen. Mark Warner (D-VA) on Capitol Hill January 24, 2024 in Washington, DC. Boeing CEO Dave Calhoun will step down at the end of 2024 in part of a broad management shakeup for the embattled aerospace giant. Chairman of the board Larry Kellner is also resigning and will leave the board at Boeing's annual meeting in May. And Stan Deal, president and CEO of Boeing Commercial Airplanes, is leaving the company effective immediately. Scrutiny intensified after a Jan. 5 accident, when a door plug blew out of a nearly new Boeing 737 Max 9, minutes into an Alaska Airlines flight.
Persons: Dave Calhoun, Sen, Mark Warner, Larry Kellner, Steve Mollenkopf, Stan Deal, Stephanie Pope, Kellner, Calhoun, Dennis Muilenburg Organizations: Capitol, Boeing, Boeing Global Services, Alaska Airlines Locations: Washington , DC
Flying is getting scary. But is it still safe?
  + stars: | 2024-03-24 | by ( Chris Isidore | ) edition.cnn.com   time to read: +9 min
Another Boeing jet plunged so severely that passengers were thrown onto the ceiling of the cabin, leaving dozens so injured they need to be hospitalized upon landing. Carlos Avila Gonzalez/The San Francisco Chronicle/Getty Images/FileHowever, other forms of flying are not nearly as safe. “Taking the Max out of the equation, (flying has) been proven to be pretty darn safe,” he said. A year ago, the discussion about air safety wasn’t focused on Boeing planes. “The gold standard is melting down, because we continue to try to downplay everything and talk about how safe the system is.
Persons: Kardashian, , Anthony Brickhouse, , it’s, Carlos Avila Gonzalez, Ed Pierson, Max, Pierson, ” Brickhouse, We’ve, That’s, Brickhouse Organizations: New, New York CNN, Alaska Airlines, Boeing, Japanese Coast Guard, Embry, Riddle Aeronautical University, Asiana Airlines, San Francisco International, San Francisco Chronicle, Railroads, Amtrak, Foundation for Aviation Safety, Max, Alaska Air, National Transportation Safety Board, FedEx, an Air Canada, San Francisco International Airport, NTSB, Air Canada, “ Pilots Locations: New York, Tokyo, Buffalo , New York, United States, San Francisco, Southwest, Alaska, , Hawaii
“Due to recent safety events, the FAA is increasing oversight of United Airlines to ensure that it is complying with safety regulations; identifying hazards and mitigating risk; and effectively managing safety,” an FAA spokesperson said in a statement. The civil aviation authority’s stepped up oversight comes after a United Boeing 737-800 landed in Medford, Oregon, missing an external panel on March 15. In just the last month, another United Boeing plane spewed flames from an engine after taking off, one slid off the runway, one lost a wheel during takeoff and another trailed hydraulic fluid. The FAA did not specify what future projects may be delayed by its evaluation, but on Saturday, Bloomberg reported the agency is considering preventing United Airlines from adding new routes, curbing the airline’s growth. Last week, a LATAM Airlines Boeing plane flying from Sydney, Australia, to Auckland, New Zealand, suddenly plunged in midair, injuring some passengers as they were thrown to the cabin’s ceiling.
Persons: authority’s, ” United, , CNN’s Gregory Wallace, Chris Isidore, Pete Muntean Organizations: CNN, Federal Aviation Administration, United Airlines, FAA, United Boeing, Boeing, Bloomberg, United, , Alaska Airlines Boeing, Max, LATAM Airlines Boeing Locations: Medford , Oregon, United, Sydney, Australia, Auckland , New Zealand
Passengers aboard an Alaska Airlines plane that made an emergency landing after a fuselage panel blew off this year have started to receive letters from the F.B.I. identifying them as possible victims of a crime. The letters are a sign that a criminal investigation the Justice Department has opened into Boeing, the manufacturer of the 737 Max 9 jet, is ramping up. “As a victim specialist with the Seattle division, I’m contacting you because we have identified you as a possible victim of a crime,” reads the letter from the F.B.I.’s Seattle office, a copy of which was obtained by The New York Times. The letter says the incident is under criminal F.B.I.
Organizations: Alaska Airlines, Department, Boeing, Seattle, The New York Times, National Transportation Safety Locations: Alaska, , Seattle, Portland
Mizuho initiated Home Depot with a buy rating, calling for roughly 10% upside. The bank upgraded shares of the industrial equipment manufacturer to a buy rating. Analyst Manav Gupta also lifted his price target to $170 from his prior target of $152. Analyst Gavin Parsons reiterated his buy rating on the stock and price target of $275. The bank initiated coverage of the home improvement stock at a buy rating, setting a price target of $415.
Persons: Mizuho, Manav Gupta, Howden, Gupta, GTLS, — Lisa Kailai Han, Gavin Parsons, Parsons, Fred Imbert, David Bellinger, Bellinger, Wells Fargo, Aaron Rakers, Goldman Sachs, Toshiya Hari, Bernstein's Stacy Rasgon, Taylor Swift, Jensen, Huang Organizations: CNBC, UBS, Boeing, Nvidia, Industries, YE2026E, Department of Energy, Alaska Airlines, Mizuho, SAP Center, Blackwell, ~$ Locations: Howden, GTLS, Mizuho, San Jose
On Friday in a United Boeing 737-800 landed in Medford, Oregon, with a panel from the underside of the fuselage missing. Earlier this month, United suffered a series of four incidents, all involving Boeing jets . A United Boeing 737-900ER spewed flames from an engine after takeoff from Fort Meyers, Florida, a United Boeing 777 lost a wheel during takeoff from San Francisco, a United Boeing 737 Max slid off a runway in Houston, and a United Boeing 777 trailed hydraulic fluid leaving Sydney. The age of the aircraft in the United incidents suggest that the cause could lie with United personnel, rather than Boeing’s well documented quality issues. And its fleet of 737 Max 9 jets were grounded for three weeks in January following the incident at Alaska Air.
Persons: Scott Kirby, Max, , ” Kirby, Kirby Organizations: Washington DC CNN — United Airlines, Boeing, , United Boeing, United, Alaska Airlines Boeing, Max, Latam Airlines, National Transportation Safety Board, Alaska Air, FAA, Airbus Locations: Medford , Oregon, Fort Meyers , Florida, San Francisco, Houston, Sydney, Australia, Auckland , New Zealand, Alaska
NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Close to three months later, the electric carmaker holds a much less enviable title — it's the S&P 500's biggest loser year-to-date. Tesla shares have plummeted about 30% year-to-date, wiping about $230 billion off the company's value. AdvertisementThe gap was even wider at the end of last week, but Tesla shares were up almost 6% on Monday. AdvertisementNelson also believes Tesla could become the world's biggest auto manufacturer — but others don't share his optimism.
Persons: , Tesla, Elon, BYD, That's, Seth Goldstein, Goldstein, Refinitiv, Garrett Nelson, Nelson, Wells, Ross Gerber, who's Organizations: Elon, Service, Boeing, Alaska Airlines, MAX, Elon Musk's, North, Fox Business Locations: Elon Musk's, North America, Europe
United Airlines CEO Scott Kirby on Monday sought to reassure customers about the carrier's safety after a series of flight problems in recent weeks. In another, a missing panel from the plane was discovered after the older Boeing 737 landed in Oregon on Friday. "Safety is our highest priority and is at the center of everything we do," Kirby said in an email to customers. "Unfortunately, in the past few weeks, our airline has experienced a number of incidents that are reminders of the importance of safety." The string of recent mishaps occurred during heightened scrutiny of the aviation industry after a door plug panel blew off of an Alaska Airlines ' nearly new Boeing 737 Max 9 on Jan. 5.
Persons: Scott Kirby, Kirby Organizations: United, Boeing, Federal Aviation Administration, Alaska Airlines Locations: Japan, San Francisco, Oregon
Cuong Tran's shoes and socks were sucked out of Alaska Airlines Flight 1282. Tran is one of seven plaintiffs in the latest class-action lawsuit related to the Boeing 737 blowout. AdvertisementA passenger on the Alaska Airlines blowout flight has shared new pictures of the aftermath as part of a lawsuit filed last Tuesday. Cuong Tran was sitting in the row just behind the door plug — a part of the fuselage that covers a deactivated emergency exit — when it detached from the Boeing 737 Max in midair on January 5. This story is available exclusively to Business Insider subscribers.
Persons: , Cuong Tran, Timothy Loranger, Ari Friedman, Wisner Baum Organizations: Alaska Airlines, Boeing, Service, Max, Business
An engine fire sparked by plastic packaging wrap, a tire lost shortly after takeoff and a plane veering off the runway: These are among the eight incidents that have occurred over the past two weeks on flights operated by United Airlines. While no injuries — or worse — have been reported, the mishaps have generated headlines and stoked rising anxiety about aviation safety among federal officials and passengers alike. All of the incidents happened in the United States, and five involved airplanes made by Boeing, a manufacturer already under intense scrutiny. In January, a door plug blew out of an Alaska Airlines Boeing 737 Max 9 jetliner in mid-flight, forcing the plane to make an emergency landing. United, one of the world’s largest airlines, flies aircraft manufactured mainly by Boeing and Airbus.
Persons: jetliner, Scott Kirby, Organizations: United Airlines, Boeing, Alaska Airlines Boeing, Max, Airbus Locations: United States
A Boeing plane lost an external panel mid-flight before landing safely in Oregon. United Airlines and the FAA said they would be investigating how this happened. AdvertisementA Boeing plane lost an external panel mid-flight before landing safely in Oregon, in the latest embarrassment for the airline manufacturer. "After the aircraft was parked at the gate, it was discovered to be missing an external panel," the statement said. AdvertisementThe Federal Aviation Administration said it is investigating how the plane lost the panel.
Persons: , We'll, Amber Judd, United —, Max, Dave Calhoun Organizations: Boeing, United Airlines, FAA, Service, Business, Rogue, Medford, Valley Times, ABC, Aviation Administration, Max, Alaska Airlines Locations: Oregon, San Francisco, Alaska, United, Houston
A Boeing whistleblower told CNN he refused to fly on a plane he'd boarded after realizing it was a Boeing 737 Max. Ed Pierson said he'd deliberately made sure the plane wasn't a 737 Max prior to booking. AdvertisementA Boeing whistleblower says that he was meant to take a domestic flight last year but ended up leaving the plane before takeoff because he refused to travel on a Boeing 737 Max. He said that he made sure to select a flight that didn't use a Boeing 737 Max. Pierson previously told the Los Angeles Times that he would "absolutely not" fly on a 737 Max because of safety concerns.
Persons: Max, Ed Pierson, he'd, Pierson, Organizations: Boeing, CNN, Service, Alaska Airlines, Max, Los Angeles Times, Alaska Airlines Max, Federal Aviation Administration Locations: Renton , Washington, Seattle, New Jersey, Alaska
Boeing is telling airlines to inspect switches on pilots' seats in its 787 Dreamliner jets after a published report said an accidental cockpit seat movement likely caused the sudden plunge of a LATAM Airlines plane flying to New Zealand. Boeing said Friday it recommended that airlines inspect the motorized cockpit seats the next time they perform maintenance on their 787s. It did not link the memo to what happened this week on a LATAM Airlines flight between Australia and New Zealand. The Federal Aviation Administration said, however, that the Boeing memo was issued “in response to the incident on LATAM Flight 800." The version involved in the LATAM flight can carry up to about 300 passengers.
Organizations: Boeing, LATAM Airlines, LATAM, Federal Aviation Administration, FAA, ” Passengers, Auckland Airport, United Airlines, American Airlines, Street Journal, Alaska Airlines, Max, National Transportation Safety Board, Justice Department Locations: New Zealand, Australia, Chile, Auckland, Oregon
The Justice Department is sending subpoenas and using a recently convened grand jury in Seattle as it widens a criminal investigation into the door plug that blew off a Boeing 737 Max 9 jetliner in January, a person familiar with the matter said on Friday. A preliminary report by the National Transportation Safety Board said four bolts meant to secure the door plug in place were missing before the panel blew off. This month, it was reported that the Justice Department had opened a criminal investigation of Boeing, which had reinstalled the door plug during maintenance in Renton, Wash., before delivering the plane to Alaska Airlines in October. The subpoenas and use of the grand jury were reported earlier Friday by Bloomberg. Boeing said it agreed with the F.A.A.’s decision and pledged to cooperate.
Persons: jetliner Organizations: Boeing, Max, Alaska Airlines, Portland International, National Transportation Safety, Justice Department, Bloomberg, Federal Aviation Administration Locations: Seattle, Oregon, Renton, Wash, Alaska
Boeing’s problems could soon become your problem
  + stars: | 2024-03-15 | by ( Bryan Mena | ) edition.cnn.com   time to read: +5 min
Washington CNN —Boeing’s problems aren’t just Boeing’s. One of America’s biggest manufacturers is dealing with some serious production, quality and safety problems that worsened this week after a 787 Dreamliner plunged suddenly mid-flight, injuring dozens of passengers. Southwest and United earlier this week said they expect Boeing to ship them fewer planes than they planned on receiving, so they’ll hire fewer pilots. (Boeing continued to build the 737 Max throughout the crisis). And Boeing’s years of problems have led to success for its French rival Airbus, which has overtaken Boeing as the world’s largest aircraft manufacturer.
Persons: Washington CNN —, aren’t, ” Kathy Bostjancic, , , ” José Torres, Max, ” Lisa Simon Organizations: Washington CNN, America’s, Boeing, Airbus, Alaska Airlines, Nationwide, CNN, Interactive Brokers, New York Fed, The New, Fed, Boeing hasn’t, Federal Aviation Administration, Revelio Labs Locations: Southwest,
An Alaska Airlines passenger tried three times to access the cockpit, an affidavit says. Flight attendants blocked the door with a beverage cart, it adds. AdvertisementAn Alaska Airlines cabin crew blocked the cockpit with a beverage cart to stop a passenger from accessing the flight deck, an affidavit states. AdvertisementIt adds that when a flight attendant asked why he was trying to get into the cockpit, Jones replied he "was testing them." The flight deck was locked down for the rest of the flight, and one flight attendant stayed with the beverage cart blocking the cockpit door, per the affidavit.
Persons: , Nathan Jones, who's, Jones Organizations: Alaska Airlines, Service, Business, Transportation Security Administration Locations: Alaska, San Diego, Washington
A 19-year-old student pilot from Northern Virginia who tried repeatedly to enter the cockpit of an Alaska Airlines flight from California to Virginia earlier this month is facing a federal charge of interfering with a flight crew, according to court documents. The man, Nathan Jones, was traveling on Alaska Airlines Flight 322 from San Diego International Airport to Washington Dulles International Airport on March 3 when he “interfered and intimidated flight crew members and attendants,” according to an affidavit filed the next day in the District Court for the Eastern District of Virginia. His lawyer filed a motion this week arguing that Mr. Jones might not be mentally fit to stand trial. The affidavit said that Mr. Jones, a passenger in seat 6E, tried three times to go to the front of the plane and “open the aircraft’s cockpit door.” Flight attendants asked for assistance from off-duty law enforcement officers, who restrained Mr. Jones in flex cuffs and sat on either side of him for the rest of the flight.
Persons: Nathan Jones, , Jones Organizations: Alaska Airlines, San Diego International Airport, Washington Dulles International Airport, Court, Eastern, of Locations: Northern Virginia, California, Virginia, Washington, of Virginia
CNN —A passenger on an Alaska Airlines flight this month repeatedly tried to open the cockpit door, prompting flight attendants to barricade the door and have the man restrained until landing, court documents filed in federal court allege. Jones got up from his seat several times during the flight and made three attempts to go to the front of the plane and open the cockpit door, an air marshal wrote in an affidavit. When a flight attendant asked why he tried to access the cockpit, Jones replied that he “was testing them,” the affidavit reads. The cockpit was locked down and barricaded with a beverage cart for the remainder of the flight, according to the affidavit. The passenger had tried to access the cockpit in a “nonviolent manner” and “appeared confused,” Alaska Airlines said on Wednesday.
Persons: Nathan Jones, Jones, , Robert Jenkins, ” Jenkins, Anne Zalewski, CNN’s Elizabeth Wolfe Organizations: CNN, Alaska Airlines, Dulles International, Federal Aviation Administration, FAA, United Airlines Locations: San Diego, Virginia, Alaska, Alexandria , Virginia
CNN —Investigators probing the Boeing 737 Max blowout say their investigation is being held back by Boeing’s lack of a paper trail for key work. Boeing recently said it has searched for records but believes its employees did not document the work. The letter noted that Boeing has also been unable to provide security footage of the September 2023 work, which included removing and reinstalling the door plug. Boeing told CNN that 30-day record retention policy for security camera footage is standard practice. The letter revealed that the NTSB’s first request to Boeing for relevant employees’ names came on January 9 — four days after the mid-flight incident.
Persons: Jennifer Homendy, Homendy, , Organizations: CNN, Boeing, Max, National Transportation Safety Board, Alaska Airlines, Senate, NTSB, ” NTSB, Transportation Safety Board, Alaska Airlines Flight, Getty, ” Boeing Locations: Boeing’s Renton , Washington, Boeing’s, Portland , Oregon, Ontario , California
This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Despite high inflation, the BOJ hasn't really shifted from its ultra-loose monetary policy that has been in place in 2016. Rate cut pivot in 2024Central banks worldwide could make a rate cut pivot in 2024. Boeing crisis hurt airlinesCEOs from several airlines say Boeing's delivery delays have forced the carriers to change their growth plans.
Persons: Thomas Calomiris Organizations: Washington , DC, CNBC, Japan's Nikkei, Dow, Nasdaq, Bank of Japan, Economist Intelligence, Boeing, Alaska Airlines Max, Southwest Airlines, Alaska Airlines, United Locations: Washington ,, Asia, BOJ, Central, Beijing
CNBC Daily Open: Sticky inflation muddies water for Fed
  + stars: | 2024-03-13 | by ( Sumathi Bala | ) www.cnbc.com   time to read: +2 min
This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Nearly half of the world's total dividend growth came from the banking sector, which delivered record payouts as rising borrowing costs lifted lenders' margins, the report found. Boeing crisis hurt airlinesCEOs from several airlines say Boeing's delivery delays have forced the carriers to change their growth plans. Citadel on rate cutsInflation headwinds remain and the Fed shouldn't cut rates too quickly, says Citadel founder and CEO Ken Griffin.
Persons: Dow, Janus Henderson, Ken Griffin Organizations: CNBC, Nasdaq, Boeing, Alaska Airlines Max, Southwest Airlines, Alaska Airlines, United, Citadel Locations: British
New York CNN —Dealmaking is the lifeblood of Wall Street. But analysts say that funding cuts in the plan could end up harming mergers and acquisitions on Wall Street, squashing hopes of a recovery in dealmaking. The bad news: Recent regulations and proposed budget cuts threaten to step on those green shoots before they’re able to flower. Why it matters: Dealmaking isn’t just good for Wall Street. Shares of the stock are down nearly 30% so far this year after its seemingly nonstop streak of bad luck.
Persons: New York CNN — Dealmaking, Joe Biden, squashing, It’s, Goldman Sachs, , Lucille Jones, Jones, Mitch Berlin, Biden, , ” Berlin, That’s, Hewlett Packard, , TikTok —, Brian Fung, TikTok, Shou Chew, Nadya Okamoto, Okamoto, Teddy Siegel, Siegel, David Goldman, LATAM, it’s, Max Organizations: CNN Business, Bell, New York CNN, Wall, LSEG, Federal Reserve, Federal Trade Commission, Department of Justice, Congressional, Office, CNN, Discover Financial Services, Hewlett, Juniper Networks, Target, Boeing, Alaska Airlines, United Airlines, The National Transportation Safety, Federal Aviation Administration, FAA, NTSB Locations: New York, dealmaking, EY, Berlin, , LSEG, Australia, New Zealand, Newark
Security camera footage showing work being done on a Boeing Max 9 door plug that later blew out mid-air has been overwritten, the head of the National Transportation Safety Board said. "Boeing has informed us that they are unable to find the records documenting this work." She continued: "A verbal request was made by our investigators for security camera footage to help obtain this information; however, they were informed the footage was overwritten. A Boeing spokesperson said the company, like many others, does not retain security footage for longer than 30 days. The Alaska Airlines plane in question was in the factory last year in September and delivered in October.
Persons: Jennifer Homendy, Homendy, Dave Calhoun, Calhoun, John Barnett, Max, Bob Jordan Organizations: Alaska Airlines Flight, Boeing, National Transportation Safety Board, Boeing Max, National Transportation Safety, Commerce, Science, Alaska Airlines, NBC News, Journal, U.S . Department of Justice, South, The New York Times, United Airlines, Southwest, JPMorgan, CNBC Locations: Alaska, Portland , Oregon, U.S, South Carolina, Barnett's
A former Boeing manager who raised safety questions about the aircraft maker has been found dead outside a hotel in South Carolina, according to local authorities. Police noted “the global attention this case has garnered.”Barnett was a longtime Boeing employee and worked as a quality-control manager before he retired in 2017. “He said that Boeing had a culture of concealment and was putting profits over safety.”Rodney Barnett said working at Boeing created stress for John. In 2019, Barnett told The New York Times about quality issues at Boeing’s factory in South Carolina, where the 787 jetliner is assembled. ___James Pollard in Columbia, South Carolina, contributed to this report.
Persons: John Barnett, ” Barnett, “ John, , Rodney, , ” Rodney Barnett, John, Barnett’s, Barnett, Max, ___, ___ James Pollard Organizations: Boeing, Coroner’s, Police, Associated Press, New York Times, BBC, Alaska Airlines Locations: South Carolina, Charleston, Louisiana, Boeing’s, Columbia , South Carolina
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