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October 23, 2019 | First High-Level Ouster from Boeing Since the 2nd 737 MAX Crash

Mike 'Mish' Shedlock

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

Kevin McAllister, Boeing’s Chief of Commercial Airplanes is the first high-level casualty since the second crash.

Earlier today, Boeing announced Commercial Airplanes Chief Leaving Amid 737 MAX Crisis.

Boeing Co. shuffled the ranks of top management on Tuesday, replacing the head of its jetliner business as it struggles to shore up confidence among customers, investors and lawmakers in the company’s handling of the 737 MAX crisis.

The management change, with Boeing services chief Stan Deal succeeding Mr. McAllister, comes just days after the disclosure of internal messages by a former Boeing pilot that suggested he unknowingly misled regulators in his work on the MAX. The messages angered regulators and lawmakers, driving fresh calls for leadership changes.

Boeing’s board met on Sunday and Monday as the pressure intensified. The disclosure of the internal messages sent Boeing’s stock tumbling, spurred analyst downgrades and sparked a firestorm that threatened to further delay the grounded 737 MAX’s return to passenger service.

In an interview in June, Air Force procurement chief Will Roper called out a Boeing commercial facility in the Seattle area as particularly beset by problems.

“We’ve seen issues across Boeing but the Everett facility, I would say, is the most advanced of those,” Mr. Roper said. “But we’ve seen issues across Boeing and that just tells me that there’s a lapse of culture.”

Global Groundings

Planes and Lawsuits Piling Up

Boeing has continued producing the planes, albeit at a reduced pace. Those planes are stockpiling and will need modifications once the FAA reaches conclusion as to a proper fix.

But that won’t be the end of it. Europe and Asia delays are likely to be longer. Europe no longer trusts the FAA which clearly has been in bed with Boeing.

Recall that Boeing asked Trump to not suspend the flights. Trump got that one right.

Trust is gone. Meanwhile, lawsuits over deaths, damages, lost earnings, and cancelled flights continue to mount.

Mike “Mish” Shedlock

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October 23rd, 2019

Posted In: Mish Talk

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