Boeing chief executive Kelly Ortberg has unveiled a four-point strategy to turn around the troubled US plane maker's fortunes after its losses nearly quadrupled to more than $6 billion in the third quarter, and as it awaits the crucial vote of its disgruntled union workers.
Mr Ortberg, in a bid to “turn this big ship in the right direction”, said that the Virginia-based company would need to implement a “fundamental culture change”, stabilise its business, improve its execution discipline and “build a new future”.
In a statement on Wednesday, he also acknowledged that Boeing “was once a benchmark for what good culture looks like” and said he believed "we can return to that legacy”.
“I know culture change starts at the top. Our leaders, from me on down, need to be closely integrated with our business and the people who are doing the design and production of our products,” he said.
In the three months to the end of September, Boeing posted a net loss of more than $6.17 billion, a 277 per cent year-on-year spike compared to the $1.64 billion loss in the corresponding period last year. Revenue dropped about 1.5 per cent annually to $17.84 billion.
Through the first nine months of 2024, Boeing has lost nearly $8 billion, against $2.2 billion in the same period last year, while revenue has declined 8 per cent to $51.28 billion. The company has a total backlog of $511 billion, including more than 5,400 commercial aircraft, it said.
Boeing’s stock was trading 2.63 per cent down at $155.67 a share at 8.30pm UAE time (12.30pm New York time) giving the company a market capitalisation of $95.94 billion. The stock is down 38.17 per cent since the start of the year.
“Clearly, we are at a crossroads: the trust in our company has eroded, we’re saddled with too much debt and we’ve had serious lapses in our performance across the company which have disappointed many of our customers,” Mr Ortberg said. “So, my mission here is pretty straightforward … restore Boeing to the leadership position that we all know and want.”
Boeing has endured a turbulent year, embroiled in a safety and quality crisis after a door panel blew out mid-air on a 737 Max jet in January, which prompted the US Federal Aviation Administration to revamp its oversight process.
Earlier this month, Boeing said it will slash 17,000 jobs, or about 10 per cent of its global workforce, and delay the first delivery of its 777X jet by one year, pushing back its largest wide-body aircraft by about six years.
The delay prompted Tim Clark, president of Dubai's Emirates airline, to say last week that the airline will have a “serious conversation” with Boeing in the next two months.
The third-quarter results also came before a much-anticipated vote by Boeing's union workers, also on Wednesday, who will decide whether to accept a new contract offer or carry on with their strike that has hit the company's finances and operations. However, the strike, which has lasted for six weeks, has not affected the production of 787 aircraft.
Mr Ortberg was named chief executive of Boeing in early August, and said he had, in his first week at the helm, met leaders of the International Association of Machinists and Aerospace Workers to “let them know that I was committed to resetting the relationship”.
“We have been feverishly working to find a solution that works for the company and meets our employees' needs … and I remain committed to getting the team back and improving our relationship, so we don’t become so disconnected in the future,” he said.
Mr Ortberg was optimistic that Boeing's offer package will bring employees back to work, “so we can immediately focus on restoring the company” and restart its factories and supply chain.
Some of aviation's biggest players remain confident in Boeing. This week, Emirates ordered five 777F freighters that will boost capacity to meet “strong” demand.
Last month, a senior Riyadh Air executive said Boeing's continuing troubles were not affecting its chances in the race against its European rival Airbus for a narrow-body aircraft order from the Saudi Arabian start-up carrier.
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Killing of Qassem Suleimani
Strait of Hormuz
Fujairah is a crucial hub for fuel storage and is just outside the Strait of Hormuz, a vital shipping route linking Middle East oil producers to markets in Asia, Europe, North America and beyond.
The strait is 33 km wide at its narrowest point, but the shipping lane is just three km wide in either direction. Almost a fifth of oil consumed across the world passes through the strait.
Iran has repeatedly threatened to close the strait, a move that would risk inviting geopolitical and economic turmoil.
Last month, Iran issued a new warning that it would block the strait, if it was prevented from using the waterway following a US decision to end exemptions from sanctions for major Iranian oil importers.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
ENGLAND SQUAD
Goalkeepers Pickford (Everton), Pope (Burnley), Henderson (Manchester United)
Defenders Alexander-Arnold (Liverpool), Chilwell (Chelsea), Coady (Wolves), Dier (Tottenham), Gomez (Liverpool), James (Chelsea), Keane (Everton), Maguire (Manchester United), Maitland-Niles (Arsenal), Mings (Aston Villa), Saka (Arsenal), Trippier (Atletico Madrid), Walker (Manchester City)
Midfielders: Foden (Manchester City), Henderson (Liverpool), Grealish (Aston Villa), Mount (Chelsea), Rice (West Ham), Ward-Prowse (Southampton), Winks (Tottenham)
Forwards: Abraham (Chelsea), Calvert-Lewin (Everton), Kane (Tottenham), Rashford (Manchester United), Sancho (Borussia Dortmund), Sterling (Manchester City)
Dengue%20fever%20symptoms
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UAE currency: the story behind the money in your pockets
The five pillars of Islam
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich 1
Kimmich (27')
Real Madrid 2
Marcelo (43'), Asensio (56')
SPECS
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Indoor cricket in a nutshell
Indoor cricket in a nutshell
Indoor Cricket World Cup - Sept 16-20, Insportz, Dubai
16 Indoor cricket matches are 16 overs per side
8 There are eight players per team
9 There have been nine Indoor Cricket World Cups for men. Australia have won every one.
5 Five runs are deducted from the score when a wickets falls
4 Batsmen bat in pairs, facing four overs per partnership
Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.
Zones
A Front net, behind the striker and wicketkeeper: 0 runs
B Side nets, between the striker and halfway down the pitch: 1 run
C Side nets between halfway and the bowlers end: 2 runs
D Back net: 4 runs on the bounce, 6 runs on the full
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
KILLING OF QASSEM SULEIMANI
Killing of Qassem Suleimani
'Skin'
Dir: Guy Nattiv
Starring: Jamie Bell, Danielle McDonald, Bill Camp, Vera Farmiga
Rating: 3.5/5 stars
Killing of Qassem Suleimani
