This strike is an early test for CEO Kelly Ortberg, who came from outside the company to head it last August.
Ortberg has already announced a plan to lay off a large number of… WorkersAnd a plan to raise the necessary financing to avoid declaring bankruptcy. The new CEO needs to convince the US federal authorities that Boeing is reforming its culture of concern for safety factors and preparing to increase aircraft production. Boeing 737 Max which is a vital step to increase flows Cash liquidity Much needed.
However, Boeing will not be able to produce any new 737 aircraft until the end of the strike of 33,000 mechanics that has been ongoing for 5 weeks, which led to the cessation of work at assembly plants in the Seattle area.
For his part, Tony Bancroft, an investment portfolio manager at Gabelli Funds, an investor in Boeing, said that Ortberg “has a lot of tasks, but he may be very focused on completing these negotiations. This is the urgent and critical task that must be faced first.”
It is noteworthy that Boeing has not achieved profits since 2018, and the situation is heading towards further deterioration before it begins to improve.
Analysts expect Boeing to announce today a loss of $6 billion during the third quarter, including $3 billion related to the civil aircraft sector and $2 billion in losses in its defense and space programs.
