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Boeing to Cut 2,000 Finance and HR Jobs
  + stars: | 2023-02-07 | by ( Andrew Tangel | ) www.wsj.com   time to read: 1 min
Boeing Co. said it would cut about 2,000 jobs primarily in finance and human resources as it broadly increases its head count this year. The Arlington, Va., aerospace manufacturer said the cuts were part of an effort to simplify its corporate structure and would occur through layoffs and attrition, while it would outsource some of the jobs.
The FAA system outage resulted in widespread disruptions to U.S. air travel earlier this month. A contractor’s personnel directly involved in a Federal Aviation Administration outage earlier this month have lost access to agency facilities and systems while the matter is being investigated, the air-safety regulator told congressional officials. The FAA system outage resulted in widespread disruptions to U.S. air travel on Jan. 11, including a nearly two-hour halt to domestic departures.
A breakdown with the Notam system prompted the FAA to halt domestic departures and contributed to nationwide cancellations. The Federal Aviation Administration said Thursday that a contractor working for the air-safety regulator had unintentionally deleted computer files used in a pilot-alert system, leading to an outage that disrupted U.S. air traffic last week. The agency, which declined to identify the contractor, said its personnel were working to correctly synchronize two databases—a main one and a backup—used for the alert system when the files were unintentionally deleted.
The families of Boeing’s 737 Max crash victims may weigh in on a previous settlement with the Justice Department. A federal judge is requiring Boeing Co. to be arraigned on a previously settled criminal charge stemming from two crashes of its 737 MAX jets, and will allow accident victims’ relatives to speak in court about an agreement that allowed the aerospace company to avoid being indicted or pleading guilty. The decision, handed down Thursday by U.S. District Judge Reed O’Connor in Fort Worth, Texas, comes after the 737 MAX families had protested how the Trump administration’s Justice Department settled with Boeing in January 2021. Under terms of the settlement, the company agreed to pay $2.5 billion and entered into a deferred prosecution agreement.
The Federal Aviation Administration said its preliminary investigation into a nationwide flight disruption this week found that it was the result of actions by personnel who failed to follow procedures. A breakdown in the FAA’s Notice to Air Missions, or Notam pilot-alert system, led the agency to halt all domestic departures for nearly two hours early Wednesday, snarling thousands of flights and contributing to around 1,300 cancellations. The agency said late Thursday that the Notam system was functioning normally.
Federal aviation regulators, lawmakers and air safety advocates have for years warned about outdated technology and other problems with the pilot-alert system that brought U.S. air travel to a halt this week. Technology that supports the Federal Aviation Administration’s Notice to Air Missions, or Notams, alert system is “failing vintage hardware” that needs to be quickly replaced, according to the Transportation Department’s most recent budget request for the FAA. Pilots and industry officials said that the format and distribution system for the notices, which can contain extraneous information, can make them difficult for pilots to digest.
An outage with a federal pilot-alert system cascaded into a nationwide logjam at U.S. airports Wednesday, snarling thousands of flights and temporarily stranding travelers across the country. The breakdown of the Federal Aviation Administration’s Notice to Air Missions system, which provides safety information to pilots, led the agency to issue a nationwide “ground stop” that halted domestic departures for nearly two hours, before flights were permitted to resume shortly after 9 a.m.
Boeing Co. boosted deliveries of jets last year, ratcheting up production after its 737 MAX crisis and the pandemic, but it still fell well short of arch rival Airbus SE, which continued to outdistance Boeing as the world’s biggest jetliner maker. Boeing commercial-airplanes chief Stan Deal said the company worked hard last year to stabilize production of the MAX, its best selling model, which was grounded for almost two years before resuming flights in the U.S. in 2020. Last year, Boeing also resumed deliveries of its 787 Dreamliner, which had faced a series of production and regulatory setbacks. Boeing boosted deliveries by 41% in 2022 over the previous year.
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About three-quarters of the survey respondents said the culture in the FAA’s Dallas-area office that oversees Southwest hasn’t improved. An internal Federal Aviation Administration survey found concerns among some inspectors about the agency’s approach to overseeing Southwest Airlines Co., according to documents viewed by The Wall Street Journal. About three-quarters of respondents said the culture in the FAA’s Dallas-area office that oversees Southwest hasn’t improved in recent years, after concerns had been raised regarding its oversight of the airline, according to an internal November survey report. Some respondents questioned the office’s commitment to safety, the documents showed.
Lawmakers Include Boeing 737 MAX Waiver in Spending Bill
  + stars: | 2022-12-20 | by ( Andrew Tangel | ) www.wsj.com   time to read: 1 min
An omnibus spending bill unveiled Tuesday would lift a Dec. 27 deadline Boeing Co. faced to get regulatory approvals for two new 737 MAX models. The company would be required by current federal law to install modern cockpit-alerting systems to help pilots resolve emergencies. The company has said it might cancel two 737 models, the shorter MAX 7 and longer MAX 10, without a reprieve from the deadline.
Delta Air Lines to Roll Out Free Wi-Fi
  + stars: | 2022-12-20 | by ( Alison Sider | Andrew Tangel | ) www.wsj.com   time to read: 1 min
Delta said it is in the process of testing Wi-Fi infrastructure, with ‘various offerings to select customers on select routes.’Delta Air Lines Inc. is expected to begin rolling out free wireless internet for its passengers as soon as early 2023, people familiar with the matter said. The Atlanta-based carrier is initially expected to offer free Wi-Fi on a significant portion of its airplanes before turning on the service on more of its fleet through next year, some of these people said. The move is likely to intensify competition over in-flight offerings as airlines rebound from the pandemic.
Boeing Dealt Setback on New 737 MAX Models
  + stars: | 2022-12-07 | by ( Andrew Tangel | ) www.wsj.com   time to read: 1 min
Boeing has said it will be safer for its new jets to have a common cockpit type with existing 737 MAX airplanes. Federal lawmakers dealt a setback to Boeing Co., proposing a defense bill that didn’t exempt two new 737 MAX models from a new regulatory requirement, as the plane maker had sought. Negotiators in Congress dropped the potential waiver from the National Defense Authorization Act, an annual must-pass bill that lawmakers filed late Tuesday. The waiver’s exclusion from the bill leaves Boeing fewer options during the current Congress to avoid a requirement to perform costly and time-consuming upgrades to the cockpits of its newest 737 models.
United Airlines Holdings Inc. is close to a deal to order dozens of Boeing Co. 787 Dreamliners, people familiar with the matter said. An agreement between the Chicago-based carrier and Boeing could be completed as soon as this month, some of these people said.
Boeing is looking to secure regulatory approval for two new versions of the 737, including the MAX 10. One of Boeing Co.’s biggest engineering challenges has morphed into a political problem—and the company is running out of time to get help from the current Congress. The plane maker’s executives and lobbyists are racing to persuade federal lawmakers to lift a Dec. 27 deadline set by Congress two years ago as part of a law aimed at making future airplanes safer. The law, enacted in the wake of two deadly crashes of Boeing’s 737 MAX, requires new aircraft to feature modern cockpit-alerting systems to help pilots resolve emergencies.
There’s a lot of buzz about flying taxis, even though none are buzzing overhead. Investors are pouring capital into start-ups racing to develop new electric aircraft that take off and land vertically like a helicopter but fly horizontally like an airplane. Major airlines are investing in some of these start-ups, betting that they will one day zip passengers between airports and city centers much faster than cars or public transit.
The two aging 747 jets currently serving as Air Force One when the president is on board came into service during the George H.W. Bush administration. Boeing ’s troubled project to replace Air Force One is getting costlier, both for the plane maker’s shareholders and U.S. taxpayers who will have to pay to keep the president’s aging jets flying longer. The Arlington, Va., aerospace company said it expects to lose $766 million more on the high-profile, years-late project to transform two 747-8 jumbo jets into flying White Houses, bringing its total losses related to the effort to nearly $2 billion, according to securities filings. The additional costs were part of a larger charge that led Boeing to report a $3.3 billion third-quarter loss.
Boeing Co. executives on Wednesday said they planned to restore the plane maker’s financial strength over the next three years, after a string of losses in the wake of two 737 MAX crashes and other problems. Boeing Chief Financial Officer Brian West said the company expects to generate about $100 billion in annual sales by 2025 or the next year, a level it hasn’t reported since 2018. The first of two MAX crashes occurred late that year, leading to the biggest crisis in the company’s history.
Boeing said its losses deepened in the third quarter as fresh problems with its defense business added to supply-chain and regulatory woes in its commercial jet arm. The Arlington, Va., aerospace giant reported a loss of $3.3 billion, compared with a $132 million deficit in the third quarter last year. Its results were weighed by $2.8 billion in charges related to programs including its troubled military refueling tanker and Air Force One replacement jets. Revenue rose 4% from a year ago to $16 billion.
Boeing said its losses deepened in the third quarter as fresh problems with its defense business added to supply chain and regulatory woes in its commercial jet arm. The Arlington, Va., aerospace giant reported a loss of $3.3 billion, compared with a loss of $132 million in the third quarter last year. Its results were weighed by $2.8 billion in charges related to programs including its troubled military refueling tanker and Air Force One replacement jets. Revenue rose 4% from a year ago to $16 billion.
Families of people who died in two Boeing 737 MAX crashes have rights as crime victims under federal law and may continue to challenge last year’s settlement that spared the company from prosecution, a federal judge in Texas found. Ruling in a challenge brought by the families, U.S. District Court Judge Reed O’Connor in Fort Worth, Texas, said they have standing to question the January 2021 agreement with the Justice Department because Boeing Co.’s conduct before the crashes led to the tragedy. Boeing said in the settlement that two of its former employees misled federal air-safety regulators about how the MAX’s automated flight-control system worked.
Families of people who died in two Boeing 737 MAX crashes have rights as crime victims under federal law and may continue to challenge last year’s settlement that spared the company from prosecution, a federal judge in Texas found. Ruling in a challenge brought by the families, U.S. District Court Judge Reed O’Connor in Fort Worth, Texas, said they have standing to question the January 2021 agreement with the Justice Department because Boeing Co.’s conduct before the crashes led to the tragedy. Boeing said in the settlement that two of its former employees misled federal air-safety regulators about how the MAX’s automated flight-control system worked.
The fatal 737 MAX 8 accidents involved a flawed Boeing assumption about how pilots would respond to a flight-control system’s misfire. Federal air-safety regulators have asked Boeing to launch a review of its safety paperwork for the 737 MAX 7, another setback for the plane maker’s push to win approval for the jet before a year-end legal deadline. The Federal Aviation Administration is unable to review the company’s submissions “due to missing and incomplete information” related to cockpit crews’ potential reactions to catastrophic hazards, according to an Oct. 12 agency letter viewed by The Wall Street Journal. Plane makers must meet such hurdles before regulators clear jets to carry passengers.
Dennis Muilenburg, then CEO of Boeing, attended a Senate committee hearing in 2019 about the 737 MAX crashes as family members held up pictures of those killed in the crashes. Boeing is poised to settle a Securities and Exchange Commission investigation into allegedly misleading statements the company and then-Chief Executive Dennis Muilenburg made about the 737 MAX jets that crashed in Indonesia and Ethiopia, according to people familiar with the matter. The financial terms of the civil settlement couldn’t be learned. The deal could be announced as soon as this week, the people said.
Dennis Muilenburg, then CEO of Boeing, attended a Senate committee hearing in 2019 about the 737 MAX crashes as family members held up pictures of those killed in the crashes. Boeing agreed to pay $200 million to settle a Securities and Exchange Commission investigation into allegations that the plane maker and its former chief executive made misleading statements the 737 MAX’s safety risks after two of the jets crashed. Dennis Muilenburg, Boeing’s former CEO, agreed to pay $1 million to settle the SEC’s claims, the agency said on Thursday. Both the company and Mr. Muilenburg resolved the investigation without admitting or denying wrongdoing.
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