It Is Time for Muilenburg to Go at Boeing (excerpt)
(Source: Air Insight; posted October 03, 2019)

By Ernest Arvai
Dennis Muilenburg, Chairman, President and Chief Executive Officer of The Boeing company. (Boeing photo)
Boeing’s problems are getting worse. The MAX is grounded, the 787 is being investigated for quality issues and has major engine problems, the 777-X is even further delayed with engine problems, and the KC-46 is failing to meet needs and currently restricted from carrying passengers and cargo.

Now, the prior generation 737NG is developing serious premature failure of structural components that should last the lifetime of the aircraft, and could result in an additional financial drain. We’ve been looking for good news about Boeing, but simply can’t find any.

Compounding the problem, trade wars with China and potential WTO tariffs with Europe do not bode well economically and Boeing could end up the big loser in these geo-political disputes. While these are not entirely of Boeing’s making, the company’s efforts to stop the Bombardier C-Series through international trade mechanisms resulted in Airbus picking up a high quality all new aircraft for virtually nothing, forcing Boeing to acquire a majority of Embraer for billions of dollars to keep pace. Advantage Airbus.

Further compounding the problem, a whistleblower report that is quite credible claims that Boeing favored expediency and cost over safety for the 737 MAX.

All of this is coming under the leadership of Dennis Muilenburg, whose strategy appears to be to maximize the share price for stockholders, and the executive team that holds stock and options. Having returned nearly $50 billion to shareholders through dividends and stock buybacks over the last five years, rather than invest in new products to better compete with Airbus, Boeing’s market share is falling and, given the aforementioned failures, is losing its reputation for quality and safety. (end of excerpt)

Click here for the full story, on the AirInsight website.


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