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Alaska received $162 million from Boeing for the Jan. 5 accident, which caused the Federal Aviation Administration to briefly ground the planes. The accident has added additional regulator scrutiny on Boeing and slowed its deliveries of new Max planes, of which Alaska is a major customer. "Alaska [Airlines] needs Boeing, our industry needs Boeing and our country needs Boeing to be a leader in airplane manufacturing," he said. Alaska forecast adjusted earnings per share of between $2.20 and $2.40, above the $2.12 analysts polled by LSEG expected. Adjusting for one-time items, Alaska posted a net loss of 62 cents a share in the second quarter, less than the $1.05 per-share loss analysts were expecting, according to LSEG.
Persons: Ben Minicucci, Minicucci, CNBC's, Dave Calhoun, LSEG Organizations: Alaska Airlines, Boeing, Federal Aviation Administration, Airlines, Airline Locations: Alaska, Seattle, Delta
“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. 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? The biggest danger of all may be understaffed air traffic controllers and overstuffed runways, which lead to far too many near misses.
Persons: , hasn’t Organizations: Boeing Max, Alaska Airlines, Federal Aviation Administration, Boeing, Senate, New York Times, Times, United Airlines
It makes him the second successive chief to go after a 737 Max crisis. AdvertisementOn Monday morning, Dave Calhoun became the second successive Boeing CEO to lose his job in the wake of a 737 Max crisis. Muilenburg was terminated as the planemaker fought for its reputation after 346 people died in two 737 Max 8 crashes in 2018 and 2019. After the longest-ever grounding for a US airliner, the 737 Max was ungrounded 10 months into Calhoun's reign. Win McNamee/Getty ImagesMost people's concerns about the 737 Max looked to have been assuaged, until the Alaska Airlines blowout on January 5.
Persons: Dave Calhoun, , Stan Deal, Calhoun, Boeing's, Dennis Muilenburg, Muilenburg, Max, Dennis, Win McNamee, Bob Clifford, Timothy Hubbard, Hubbard, Clifford, DAVID RYDER, Critics, Justin Green, Green Organizations: Boeing, Service, Airbus, Federal Aviation Administration, MCAS, Alaska Airlines, National Transportation Safety, Justice, FBI, Ethiopian, Alaska Air, United Airlines, Boeing's, Street Journal, The, Current, Business, University of Notre Dame, CNBC Locations: MCAS, Southwest , Alaska, Calhoun, Virginia, Seattle, Boeing's, Renton , Washington
A Timeline of Dave Calhoun’s Rocky Tenure at Boeing
  + stars: | 2024-03-25 | by ( Santul Nerkar | ) www.nytimes.com   time to read: +1 min
When Boeing named Dave Calhoun its chief executive in 2019, his mandate was clear: to navigate the company out of a reputational crisis after a pair of deadly crashes on its planes. But on Monday, Boeing announced that Mr. Calhoun would depart at the end of 2024 as the company tries to manage another safety crisis. Max planes were grounded after those crashes. A week before the company announces Mr. Calhoun’s new role, Boeing says that it is suspending global production of the Max. It had already cut production to 42 planes per month from 52.
Persons: Dave Calhoun, Calhoun, Calhoun’s, Dennis A, Max Organizations: Boeing, Boeing Max
Boeing announced Monday that its chief executive, David Calhoun, would step down at the end of 2024 as part of a broad management shake-up, as the aircraft maker grapples with its most significant safety crisis in years. Boeing also announced that its chairman, Larry Kellner, would not stand for re-election. The board elected Steve Mollenkopf, an electrical engineer by training and the former chief executive of Qualcomm, as its new chairman. In that role, he will lead the process of choosing Boeing’s next chief executive. The management overhaul comes less than three months after a panel, known as a door plug, blew off a Boeing Max 9 during an Alaska Airlines flight on Jan. 5.
Persons: David Calhoun, Stan Deal, Stephanie Pope, Larry Kellner, Steve Mollenkopf, Boeing’s Organizations: Boeing, Qualcomm, Boeing Max, Alaska Airlines
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
Boeing handed over 27 airplanes to its customers last month as it continues to struggle with quality-control problems and production delays that have frustrated the CEOs of some of its biggest airline customers. So far this year, Boeing has handed over 54 planes, while Airbus has widened its lead over its main rival, delivering 79 planes in the first two months of 2024. Delayed Boeing planes have been difficult for airline leaders. Southwest Airlines , which flies only Boeing 737s, on Tuesday said it would trim capacity plans this year because of fewer Boeing Max deliveries and that it will have to reevaluate its 2024 financial estimates. Last week American Airlines announced a 260-narrow-body-airplane order split between Boeing, Airbus and Embraer.
Persons: Boeing Max, Max jetliners Organizations: Boeing, Airbus, Southwest Airlines, United Airlines, American Airlines, Embraer
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBoeing stock has a 'built-in-risk premium' following string of issues: Stifel's Bert SubinBert Subin, Stifel Aerospace Analyst, joins 'Fast Money' to talk what is next for Boeing as the government opens a criminal investigation into January's mid-air door blowout on a Boeing Max 9.
Persons: Bert Subin Bert Subin, Boeing Max Organizations: Boeing, Stifel Aerospace
United Airlines will pause pilot hiring this spring because of Boeing delivery delays, the latest effect of the plane maker's problems on one of its biggest customers. New hire classes will be paused in May and June and will likely resume in July, Marc Champion, vice president of flight operations, and Kirk Limacher, vice president of flight ops planning and development, told staff Thursday in a memo, which was seen by CNBC. "We wanted to let you know that United will slow the pace of pilot hires this year due to continued new aircraft certification and manufacturing delays at Boeing," they wrote. Bolts appeared to be missing on the plane when it left Boeing's factory, a preliminary investigation found. United's CEO, Scott Kirby, in January said the carrier is making a fleet plan without the Max 10.
Persons: Marc Champion, Kirk Limacher, Boeing Max, Bolts, Max, Scott Kirby, Limacher Organizations: Boeing, CNBC, Alaska Airlines, Federal Aviation Administration
American Airlines flight 718, a Boeing 737 Max, takes of from Miami International Airport on its way to New York on December 29, 2020 in Miami, Florida. American Airlines said Monday that it is ordering 260 new narrow-body jets, including dozens of Boeing's long-delayed 737 Max 10. The order includes 85 of Boeing's 737 Max 10 planes and 85 of the Airbus A321neo, aircraft it says will help it upgauge on domestic and short-haul international routes. American said it would also convert orders for 30 Boeing 737 Max 8 planes, a model that is already a staple of its fleet, into the larger 737 Max 10s. American is planning to grow its first class on some of its narrow-body planes, the carrier also said Monday alongside its first investor day in more than six years.
Persons: Max, Scott Kirby Organizations: American Airlines, Boeing, Miami International Airport, Miami , Florida . American Airlines, Airbus, Embraer, United Airlines, Max Locations: New York, Miami , Florida, Fort Worth , Texas
Washington DC CNN —The Federal Aviation Administration has flagged more safety issues for two troubled families of Boeing planes, the latest in a series of issues at the embattled aircraft maker. The issues involve engine anti-ice systems on the 737 Max and larger 787 Dreamliner. But it’s not a solution.”The FAA said the newly disclosed Max issue could cause the jet’s engines to stop working. The 2021 discovery lines up with the company’s order that year to ground some Max planes because of a different electrical problem. A different issue with the DreamlinerLess than a week after publicly publishing the 737 Max notice, the FAA reported a separate anti-icing issue with the 787 Dreamliner.
Persons: Max, , Mother Nature’s, , Dennis Tajer, aren’t, it’s, Jessica Kowal, Boeing Max —, Jennifer Riordan, Kowal, Dave Calhoun Organizations: Washington DC CNN, Federal Aviation Administration, Boeing, FAA, Seattle Times, Alaska Air, American Airlines, Allied Pilots Association, Southwest Airlines, National Transportation Safety, Justice Department, NTSB
Read previewA Boeing whistleblower who quit over concerns about the company's 737 Max production told Politico that the FAA had "no presence" at the factory he worked in. Two months after Pierson's resignation, a Lion Air Boeing 737 Max crashed into the sea in October 2018, killing all 198 people on board. The company faced backlash again in January of this year after a door plug on an Alaska Airlines Boeing 737 Max 9 blew off mid-flight . Pierson told the publication. AdvertisementPierson told Politico that he still feels unsafe on Boeing Max planes — so much so that he refuses to fly on them.
Persons: , Max, Ed Pierson, Calhoun, Pierson, Dave Calhoun, JASON REDMOND, That's Organizations: Service, Boeing, Politico, FAA, Lion Air Boeing, Business, Ethiopian Airlines, New York Times, NBC News, Alaska Airlines Boeing, Max, CNBC, Alaska Airlines, Boeing Renton Factory, Getty, Foundation for Aviation Safety, Boeing Max, FFA Locations: Renton , Washington, AFP, Northwest, Seattle, New York, Alaska, Wichita , Kansas
Read previewThe Federal Aviation Administration spent nearly a year investigating Boeing's safety culture, uncovering a troubling workplace culture that made safety issues difficult to report. The FAA published the results of its investigation on Monday in a scathing 50-page report detailing 27 areas where Boeing's safety procedures and culture were insufficient. Staff also did not know their role in the safety management systems, and were skeptical of the systems' lasting power. The panel said it could not pinpoint a consistent and clear process for employees to report safety concerns. The experts found Boeing's documentation of its safety management systems overly complex and constantly changing, which created a culture of confusion among the employees.
Persons: , weren't Organizations: Service, Federal Aviation Administration, FAA, Business, Boeing Max, Boeing, Alaska Airlines, National Transportation Safety, Staff
Its price target of $4,380 suggests nearly 18% upside from Friday's close. "We expect numbers to reset lower (again) with the downward revision a negative catalyst for the multiple, and the margin story likely being pushed out to 2025," wrote analyst Christian Carlino. Analyst Anthony Powell accompanied the move by raising his price target to $204 from $194, implying a potential 15% rally for the stock. The investment firm upgraded the airline stock to market-perform from underperform, boosting its price target to $32 from $26. His price target of $338 per share implies upside of just 5% from Friday's close.
Persons: Bernstein, Evercore, Piper Sandler, Brian Mullan, Mullan, — Jesse Pound, Aaron Kessler, — Michelle Fox, JPMorgan downgrades Holley, Holley, Christian Carlino, Carlino, HLLY, hasn't, — Lisa Kailai Han, AvalonBay, Anthony Powell, Powell, AVB, Lisa Kailai Han, Joshua Shanker, Morgan Stanley, bullish Tesla, Tesla, Adam Jonas, Jonas, Russell Quelch, Quelch, MSCI, Arun Viswanathan, Viswanathan, Rosenblatt, Hans Mosesmann, Mosesmann, Michael Linenberg, Linenberg, David Vernon, David Raso, Raso, Assuredness, Fred Imbert, ~$ ~$ Organizations: CNBC, Airlines, Southwest Airlines, Deutsche Bank, JetBlue, Caterpillar, Foods, . Restaurant, Seaport Research, Booking Holdings Seaport Research Partners, Booking Holdings, JPMorgan, Barclays, Bank of America, AIG, of America, Tesla Network, RBC, Ball Corporation, Markets, Ball Corp, Aerospace, BAE Systems, Ball, Micro Computer, Super Micro Computer, Micro, ASM, Spirit Airlines, Bernstein, Spirit, Boeing Max, ISI, CAT Locations: Southwest, Friday's
PORTLAND, Ore. (AP) — A “whistling sound” was heard on a previous flight of the Boeing 737 Max 9 whose door plug blew out during an Alaska Airlines flight last month, an attorney representing passengers in a lawsuit said in new court documents. On Wednesday, he filed an amended complaint that adds 18 additional passenger plaintiffs and includes the new allegations concerning the previous flight. He did not specify who they were and declined to confirm whether they were passengers or crew members on the previous flight. He also declined to specify when the previous flight occurred. She cautioned, however, that the pressurization light might be unrelated to the door plug blowout.
Persons: Mark Lindquist, Lindquist, , , Max, Jennifer Homendy Organizations: Boeing, Max, Alaska Airlines, Court, Associated Press, AP, National Transportation Safety, NTSB, Alaska, Federal Aviation Administration Locations: PORTLAND, Portland , Oregon, Washington state's King County, Max, Alaska, United
Boeing reported another problem with fuselages on its 737 jets that might delay deliveries of about 50 aircraft in the latest quality gaff to plague the manufacturer. Boeing Commercial Airplanes CEO Stan Deal said in a letter to Boeing staff seen Monday that a worker at its supplier discovered misdrilled holes in fuselages. Spirit AeroSystems, based in Wichita, Kansas, makes a large part of the fuselages on Boeing Max jets. Alaska Airlines and United Airlines have begun returning some to service. Boeing, based in Renton, Washington, said last week it was withdrawing a request for a safety exemption needed to certify a new, smaller model of the 737 Max airliner.
Persons: Stan Deal, Deal, Max Organizations: Boeing, Boeing Commercial, Boeing Max, Alaska Airlines, Federal Aviation Administration, United Airlines, airline, FAA Locations: fuselages, Wichita , Kansas, Portland , Oregon, U.S, Renton , Washington
Wary passengers appear to be changing their bookings to avoid Boeing's 737 Max planes. Kayak said use of its 737 Max search filter increased threefold in the days after the incident. AdvertisementAnxious flyers appear to be actively avoiding boarding Boeing's 737 Max planes, even if that means paying extra for a different fight. It's not the first time Boeing's 737 Max fleet has had issues. In 2019, two Boeing 737 Max planes crashed , killing nearly 350 people.
Persons: , TikTok influencer @culturework, SFGate, Culturework, Jay Franzone, Boeing Max, Max, It's Organizations: Alaska, Service, Boeing, Alaska Airlines, Washington Post, Federal Aviation Administration, Max, Kayak, United Airlines
Read previewThe FAA is investigating after six people were hospitalized following an incident on an American Airlines flight to Hawaii on Saturday. The plane made a "hard landing" at Kahului Airport in Maui at 2 p.m. on Saturday after arriving from Los Angeles, the FAA told Business Insider in a statement. American Airlines meanwhile told BI the plane "experienced an issue" while landing but it taxied to the gate and everyone left the plane normally. The airline said one customer and five flight attendants were transported to the hospital following the flight. AdvertisementAccording to the Maui airport, the flight was scheduled to arrive at 12:47 p.m. but didn't arrive until 2 p.m.," NBC News reported.
Persons: , didn't, Mike Whitaker Organizations: Service, American Airlines, Kahului, FAA, Business, American, NBC, Los Angeles International Airport, Maui Police Department, Hawaii, Boeing Max, Alaska Airlines, Boeing Locations: Hawaii, Maui, Los Angeles
Alaska Airlines has begun flying Boeing 737 Max 9 jetliners again for the first time since they were grounded after a panel blew out of the side of one of the airline's planes. They said they resumed flying the Max 9 with a flight from Seattle to San Diego on Friday afternoon. Alaka Airlines and United are the only two U.S. airlines that operate this particular model of the Boeing 737. The Federal Aviation Administration has detailed the process that airlines must follow to inspect — and if necessary, repair — the panels called door plugs, one of which broke loose on Alaska Airlines flight 1282 on Jan. 5. The FAA grounded all Max 9s in the U.S. the day after the blowout.
Persons: jetliners, Max Organizations: Alaska Airlines, Boeing, Max, Federal Aviation Administration, Alaska, FAA, Alaka Airlines Locations: Seattle, San Diego, Oregon, U.S
approved inspection and maintenance procedures for the planes, clearing the way for the grounded Max 9 planes to fly again. Airlines said they planned to resume flying the Max 9s this week. Which airlines use the Max 9? Of the 215 Boeing Max 9 airplanes flown globally, United Airlines operates 79, the most of any airline, and Alaska has 65, according to Cirium, an aviation data provider. Their combined fleets represent about 70 percent of the Max 9 jets in service.
Persons: Max Organizations: Alaska Airlines Boeing, Max, Federal Aviation Administration, Airlines, Boeing Max, United Airlines Locations: Portland ,, Alaska
Alaska Airlines plans to resume flights with its Max 9s on Friday, and United aims to follow suit on Sunday. United Airlines made similar similar findings. Travelers returned to the Boeing 737 Max 8 after two of them crashed in 2018 and 2019, killing 346 people. In that case, Boeing had to redesign an automated flight-control system before the FAA would let Max 8s and Max 9s resume flying after a 20-month grounding. In addition, the FAA says it won't let Boeing expand production of Max jets until it's satisfied that quality-control concerns about the company have been resolved.
Persons: Max, Mike Whitaker, Ben Minicucci, , Scott Keyes, Scott Kirby Organizations: Boeing, Max, Alaska Airlines, Federal Aviation Administration, FAA, NBC, United Airlines, Travelers, U.S . Department of Transportation, Airline, BOEING, Alaska, Airbus, U.S ., United Locations: United States, United, Oregon, U.S, Portland , Oregon, Alaska
Southwest Airlines has taken the Boeing 737 Max 7 out of its fleet plans as regulators haven't yet certified the smallest model of the manufacturer's best-selling plane. Southwest became the latest of the major airlines this week to rethink its fleet plans because of certification delays at Boeing. Earlier this week, United Airlines said it was removing the the 737 Max 10, the largest model of the Max family, from its internal fleet plans after delays with certification. Scrutiny on Boeing has mounted in recent weeks after a door panel blew out midflight from a 737 Max 9 that was operated by Alaska Airlines on Jan. 5, prompting the FAA to ground that model. FAA Administrator Mike Whitaker told CNBC earlier this week that even before the Alaska Airlines incident, the agency had concluded it needed a more "hands-on approach" with the certification of the Max 7 and Max 10 aircraft.
Persons: Max, Mike Whitaker, Whitaker Organizations: Southwest Airlines, Boeing, Max, United Airlines, Alaska Airlines, FAA, CNBC Locations: Alaska
There’s plenty for investors to celebrate right now, but a look under the hood reveals quite a bit of decay. But it’s largely Big Tech that’s driving markets higher, and that concentration of gains in so few stocks carries inherent risk. But investors are adjusting expectations: Investors eventually get used to strong data, and come to expect it. “It’s hard for data to keep surprising in the same direction, since investors simply adjust their expectations,” said Allen. Just one month ago, more than 75% of investors thought the central bank would cut rates at their March meeting.
Persons: Bell, Debbie Downer, Wall, Dow, Germany’s DAX, Henry Allen, , Allen, Christopher Waller, That’s, Bill Gates, Larry Fink, Chris Isidore, “ I’m, Scott Kirby, they’ve, ” Kirby, Boeing Max, Max, Kirby, “ We’re, Samantha Delouya, Amy Reinhard, Netflix’s, , we’ve Organizations: CNN Business, Bell, New York CNN, Nvidia, Microsoft, Investment, Deutsche Bank, Big Tech, Federal Reserve, University of, National Association of Business Economics, University of Michigan, Fed, ” Financial, BlackRock, Boeing United Airlines, Boeing, United, CNBC, Alaska Airlines, Federal Aviation Administration, United Airlines, Refinitiv, Max, FAA, Netflix Locations: New York, Europe
Federal regulators on Wednesday cleared the way for Boeing 737 Max 9 jets to fly again — but also said they would put new limits on production of the troubled planes. The Federal Aviation Administration grounded about 170 Max 9 planes on Jan. 6 after a body panel detached from an Alaska Airlines Max 9 minutes after the flight took off from Portland, Ore., leaving a gaping hole in the side of the jet. On Wednesday, the agency approved a set of inspection and maintenance procedures and said airlines could resume flying the jets once the checks were complete. The process includes requiring airlines to inspect certain bolts and fasteners and to re-torque fasteners on the panel, known as a door plug, which is placed where an emergency exit door would be if a jet had more seats. United Airlines said that it would begin inspecting its 79 Max 9 planes under the new guidelines and that it expected to start using them again on flights on Sunday.
Organizations: Boeing, Max, Federal Aviation Administration, Alaska Airlines Max, United Airlines, Sunday . Alaska Airlines Locations: Portland ,, Sunday
United Airlines is weighing fleet plans without the Boeing 737 Max 10 after a series of delays and most recently, the grounding of a smaller variant of the plane, the carrier's CEO said Tuesday. The Max 10 is the largest model of the plane and hasn't yet been certified by the Federal Aviation Administration. United has 79 of the 737 Max 9 aircraft in its fleet, more than any other carrier. "We're going to at least build a plan that doesn't have the Max 10 in it." Last week, Delta Air Lines CEO Ed Bastian told CNBC last week that he is confident moving forward with his airline's order of Boeing Max 10s.
Persons: Scott Kirby, Kirby, CNBC's, Max, Ed Bastian, Boeing Max, Boeing didn't Organizations: Airlines, Boeing, Max, Federal Aviation Administration, United, Alaska Airlines, FAA, Delta Air, CNBC
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