It's Been a Very Bad Week for Boeing

Summary

The transcript discusses various challenges faced by Boeing, including a minor fire on a plane, manufacturing process issues, and the NTSB's claim of lack of cooperation. It also touches on Boeing's stock performance, upcoming order and delivery reports, and the potential acquisition of Spirit AeroSystems. The conversation highlights the complexities of the deal, Spirit's financial struggles, and the implications for Boeing's focus on its production line and quality control.

Takeaways

• 🛬 Tebowing incident occurred due to multiple issues, including a minor fire on a Boeing plane.
• 🚫 Boeing has faced criticism for potential manufacturing issues and lack of documentation.
• 🤝 The NTSB accused Boeing of not cooperating, but Boeing claims they are providing as much information as possible.
• 📉 Boeing's stock price is at 200, and they are expected to report low February orders and deliveries.
• ✈️ The FAA has instructed Boeing to halt production, impacting their delivery numbers.
• 📉 Spirit AeroSystems, a Boeing supplier, faced financial difficulties with a cash flow loss of about $350 million last year.
• 💼 Spirit AeroSystems has diversified 20% of their business to Airbus but still faces challenges with quality control and cash flow.
• 🤝 There is speculation about Boeing potentially acquiring Spirit AeroSystems, which could help with quality control issues.
• 🔄 The acquisition of Spirit AeroSystems by Boeing would be complex, especially considering their Airbus business and financial situation.
• 🏭 Boeing may not fully integrate Spirit AeroSystems into their operations, potentially keeping them under the Boeing umbrella in name only.

Q & A

What was the incident involving a Boeing plane mentioned in the transcript?

There was a minor fire on the engine of a Boeing plane.

How does the speaker view the minor fire incident on the Boeing plane?

The speaker acknowledges it as a normal issue that can happen with planes, but also emphasizes the importance of safety and the fact that no one was injured.

What has been a recent issue with Boeing's cooperation with the NTSB?

The NTSB has criticized Boeing for not cooperating, but Boeing has claimed they are providing as much detail as they can.

What is the significance of the upcoming February orders and deliveries report for Boeing?

The report is significant because it will show the number of deliveries on the Boeing Max, which is expected to be low, indicating potential problems in their production line.

Why is the FAA monitoring Boeing's production?

The FAA is monitoring Boeing's production and has told them to stop production due to issues with the Boeing Max deliveries.

What is the potential deal between Boeing and Spirit AeroSystems?

The potential deal involves Boeing taking Spirit AeroSystems in-house, which could help with quality control and other issues, but also adds complexity to Boeing's operations.

What has been Spirit AeroSystems' financial situation?

Spirit AeroSystems has faced financial difficulties, including a loss of about 350 million in cash flow last year and a need to refinance their debt.

How has Spirit AeroSystems diversified its business?

Spirit AeroSystems has diversified by doing 20% of their business with Airbus, in addition to their work with Boeing.

What are the challenges Spirit AeroSystems faces with its Airbus work?

Spirit AeroSystems is still losing 200 million in annual free cash flow from their Airbus work, which they need to address.

What is the complexity of the potential deal between Boeing and Spirit AeroSystems?

The deal is messy because Boeing would likely not buy the Airbus business from Spirit, and there are questions about the price at which they could sell it.