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Boeing's in BIG NEW TROUBLE and Its worse than you think! Here's Why

Boeing's in BIG NEW TROUBLE and Its worse than you think! Here's Why === #fligavia #boeing #airbus #aviation === 00:00 Intro 00:26 Supply Chain is Becoming Harder 03:31 Emergency Safety Recommendation for 737 Max 06:10 FAA Recommendations 06:50 How does it affect operation? 07:32 Boeing's plea agreement in 737 Max case === Boeing's in BIG NEW TROUBLE and Its worse than you think! Here's Why Flig Avia here, and we’re back with the latest news. This time, it’s about the Boeing 737 Max. And no, this isn’t a rehash of old stories! You’ve probably been overwhelmed by all the troubles surrounding this manufacturer and the 737 Max and might not be keeping up. We totally get it! So, what disaster has the Max caused this time? Can Boeing still save itself? Stay tuned until the end of today’s episode because we’ll have a lot of interesting questions to discuss! Boeing's in BIG NEW TROUBLE and Its worse than you think! Here's Why First, Boeing's efforts to stabilize its business operations continue to face obstacles, with production targets for the 737 Max once again delayed. It seems that this has become a recurring theme over the past few years. According to a note from a Bank of America analyst sent on Tuesday, Boeing's production of the 737 aircraft has been 'completely halted' due to the ongoing strike by the International Association of Machinists and Aerospace Workers (IAM). Two separate representatives from this manufacturer have confirmed the production halt to Fortune. 'Airplane production in Washington state is temporarily paused, including work on the 737 Max, 767, Triple 7, Triple 7X, P-8, and KC 46 A Tanker, as well as the E-7 Wedgetail,' a spokesperson wrote to Fortune in an email on Wednesday. ''Work at our Fabrication sites in Washington and Oregon will also temporarily pause. Employees not represented by this union will continue to report to work as normal.'' Boeing's in BIG NEW TROUBLE and Its worse than you think! Here's Why As a result, Boeing's stock has dropped more than 2% on Wednesday. Analysts from Bank of America indicated that the specific impact on aircraft deliveries is still unclear, but the delivery rate has ''declined significantly.'' In the past week, Boeing only delivered two 737's, a number they consider to be 'far below the average.' Airbus is also facing supply chain issues, but fortunately, the problems are less severe compared to Boeing, and they are addressing these issues gradually. Can Boeing manage to overcome its difficulties? With 787 - an aircraft series that is less affected - Boeing had no delivery last week and only 2 aircraft were delivered for the whole of September. However, Bank of America predicts that this company will maintain the production level the same as last month because the assembly line of Dreamliner ''almost not affected due to strikes''. Therefore, there is no hope that they will enhance the output level in time in the next month. That is the reason why they still keeps a neutral rating with Boeing stock. The employee strike started on September 13 with the participation of 33,000 workers and is still ongoing. If the situation continues for a long time, the US manufacturer may have to face serious consequences including the risk of losing customers. In any case, this company can't let it happen. Last week, the Financial Director Brian West sent an internal announcement to the employees and emphasized that the strike is ''seriously threatening our recovery processing''. To ensure cash flow and the future of the company, Boeing has to quickly implement methods to cut costs. These measures include implementing a company-wide hiring freeze, suspending salary increases and promotions, minimizing unnecessary business trips, and halting expenditures for charity, marketing, and advertising. Additionally, the company is considering a 'difficult measure' of temporarily laying off some employees. Regardless of the company's goals and intentions, the urgent issue remains to resolve the conflicts with their workers. Boeing has not faced any serious challenges like that. Hope that aviation still keeps the balance of competition. Meanwhile, another problem of 737 Max was found out the reason and the FAA gave an emergency recommendation after 8 months. In February, a Boeing 737 Dash 8 belonging to United Airlines faced an incident with a stuck rudder pedal upon landing at Newark Liberty International Airport. This incident led to an investigation by the National Transportation Safety Board (NTSB for short). Nearly 8 months later, the agency issued an emergency safety recommendation related to the aircraft model. Currently, the Federal Aviation Administration is reviewing the measures to address this.