Plenty of words have already been written comparing the ups and downs of Boeing to the rise and fall of American manufacturing and corporate power over the past quarter century.
The US aerospace company’s experience has also been contextualised by the peaks and troughs of globalisation. As the scale of supply chains has widened and prices have until recently been on a downward curve, the companies that started and dominated industries in the 20th century faced the tough choice between staying competitive and maintaining historic traditions and standards but risking the loss of market share.
It’s fair to say that Boeing has now become a business school case study of how not to navigate that challenge. There is a kind of management morality tale at work. There is also still hope that there is a redemption arc to come.
It will be a long road back for its reputation after the guilty plea to a criminal fraud conspiracy charge, settling the US government inquiry into the 737 Max crashes in Indonesia and Ethiopia in 2018 and 2019, which resulted in the deaths of 346 people.
A fine of $243.6 million has been levied to conclude the US Justice Department’s investigation and a further $455 million will need to be spent by Boeing over the next three years to strengthen its compliance and safety programmes.
Boeing is now set to become a convicted felon. Its every misstep will be highly scrutinised. It will need to be perfect in a business in which there is so much risk. Just this week, there was another incident when a wheel fell off one of its aircraft on take-off at Los Angeles International Airport.
Boeing's every misstep will be highly scrutinised. It will need to be perfect in a business in which there is so much risk
The heaviest irony of Boeing’s woes is that they have come despite an era in which people are flying more than they ever did and so planes and airlines – Boeing’s bread and butter – are as in demand as they have ever been.
What this experience has also made clear is that the ability to run a business in an ethically sustainable fashion isn’t always down to the health of a sector or the dynamics of supply and demand. By far the most important factor for long-term success is the state of a company’s internal culture. On this front, the most pertinent issue, it seems, has been what an expert panel reviewing Boeing’s safety management processes called a “disconnect” between senior management and its employees, Reuters reported in February.
There was “a lack of awareness of safety-related metrics at all levels of the organisation … [and] an inadequate and confusing implementation of the components of a positive safety culture”.
According to many analysts and observers, Boeing’s top management had since the 1990s prioritised so-called shareholder value, rewarding investors with buybacks built on cost-cutting, outsourcing and losing touch with the values of high-quality engineering prowess that the company was built on, going all the way back to its pre-First World War origins and through the jet age that Boeing heralded before its corporate compass lost sight of its North Star.
That’s literally a microcosm of what has happened to the broader manufacturing base in the US that led the world economy.
Meanwhile, there have been winners in other regions, especially in Asia and the Middle East. A prime example of a company that has capitalised on the boom in air travel – and a leading Boeing customer – is Emirates. The airline’s president, Tim Clark, told Bloomberg in June that he believed it would be “one step at a time” for Boeing to ultimately arrive at a point where it might see better days again.
“We have an existential problem at the moment … For me, this will be a five-year hiatus starting from now … can it be done? Of course it can be done. I mean they always did, didn’t they. Safety … or quality control wasn’t something you thought about … We know they can design great airplanes. Is it fixable? Of course it’s fixable. But don’t rush things.”
The answer to creating a better culture at Boeing is also straightforward, according to Mr Clark. Top management has “fingerprints on everything [at Emirates] … there is not a thing that goes on, on a day-to-day basis … without us knowing something about it”.
Mr Clark highlighted the strength of Boeing’s “dynastic” domestic workforce and urged the company to double down on this attribute rather than seeking cheaper options elsewhere in the world.
Ultimately, if Boeing was able to follow through on reinstating the prominence of its employees ahead of shareholders, it would represent a reversal of a trend that has influenced not just the US economy but also one that has had a seismic impact on the political landscape as jobs have shifted abroad.
In an election year, there is a huge opportunity for a former titan of the American Dream to begin to rebuild the faith in it.
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Celta Vigo 2
Castro (45'), Aspas (82')
Barcelona 2
Dembele (36'), Alcacer (64')
Red card: Sergi Roberto (Barcelona)
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
'Champions'
Director: Manuel Calvo
Stars: Yassir Al Saggaf and Fatima Al Banawi
Rating: 2/5
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
UK's plans to cut net migration
Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.
Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.
But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.
Language requirements will be increased for all immigration routes to ensure a higher level of English.
Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.
The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.
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
Company Profile
Name: JustClean
Based: Kuwait with offices in other GCC countries
Launch year: 2016
Number of employees: 130
Sector: online laundry service
Funding: $12.9m from Kuwait-based Faith Capital Holding
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
Available: Now
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
WISH
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The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
Global state-owned investor ranking by size
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China
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UAE
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Japan
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5
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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Killing of Qassem Suleimani
Killing of Qassem Suleimani
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
The specs: 2018 Audi Q5/SQ5
Price, base: Dh183,900 / Dh249,000
Engine: 2.0L, turbocharged in-line four-cylinder / 3.0L, turbocharged V6
Gearbox: Seven-speed automatic / Eight-speed automatic
Power: 252hp @ 5,000rpm / 354hp @ 5,400rpm
Torque: 370Nm @ 1,600rpm / 500Nm @ 1,370rpm
Fuel economy: combined 7.2L / 100km / 8.3L / 100km
Points tally
1. Australia 52; 2. New Zealand 44; 3. South Africa 36; 4. Sri Lanka 35; 5. UAE 27; 6. India 27; 7. England 26; 8. Singapore 8; 9. Malaysia 3
Jigra
Starring: Alia Bhatt, Vedang Raina, Manoj Pahwa, Harsh Singh
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
KILLING OF QASSEM SULEIMANI
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
Israel Palestine on Swedish TV 1958-1989
Director: Goran Hugo Olsson
Rating: 5/5
THE SIXTH SENSE
Starring: Bruce Willis, Toni Collette, Hayley Joel Osment
Director: M. Night Shyamalan
Rating: 5/5
TV: World Cup Qualifier 2018 matches will be aired on on OSN Sports HD Cricket channel
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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UAE currency: the story behind the money in your pockets
KILLING OF QASSEM SULEIMANI
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
Emergency
Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5
The specs
Engine: 2.0-litre four-cylinder turbo
Power: 268hp at 5,600rpm
Torque: 380Nm at 4,800rpm
Transmission: CVT auto
Fuel consumption: 9.5L/100km
On sale: now
Price: from Dh195,000
SERIES SCHEDULE
First Test, Galle International Stadium
July 26-30
Second Test, Sinhalese Sports Club Ground
August 3-7
Third Test, Pallekele International Stadium
August 12-16
First ODI, Rangiri Dambulla Stadium
August 20
Second ODI, Pallekele International Stadium
August 24
Third ODI, Pallekele International Stadium
August 27
Fourth ODI, R Premadasa Stadium
August 31
Fifth ODI, R Premadasa Stadium
September 3
T20, R Premadasa Stadium
September 6
