Boeing has fired CEO Dennis Muilenburg

[oz_mark]

Guess it was coming..

Boeing fires CEO Dennis Muilenburg, as the company struggles with 737 Max crisis

Muilenberg is out now, while Boeing Chairman David Calhoun will step in as CEO in January.

www.cnbc.com

 

[cove]

I looked and Boeing shares have jumped $9 on this news. If you had been shorting their shares you could be a bit worried.

 

[pauly7]

Months too late. Staggering really it’s taken this long.

 

[Hvr]

So I wonder if Boeing will look to Pepsi for a new CEO?

After all, their Pepsi-Max works as advertised. As do the different models (flavours).

 

[jb747]

And the nominated replacement is from private equity. I won’t believe they’re serious until they move management back to Seattle instead of intentionally keeping themselves ‘remote’ in Chicago.

 

[cambriamarsh]

And the nominated replacement is from private equity. I won’t believe they’re serious until they move management back to Seattle instead of intentionally keeping themselves ‘remote’ in Chicago.

HYPOTHESIS

PE is all about returns on investment and has a well deserved reputation for being very focussed on those returns. Not at all clear that having the senior management remote from those making the product makes sense under any sensible business model so not sure how they are going to generate those returns.

DISCUSS

 

[banana boy]

Boeing declined to comment on Muilenburg’s severance, but a filing earlier this year showed he could be eligible for around $39 million.

Damn wish they'd sack me.

 

[offshore171]

And the nominated replacement is from private equity. I won’t believe they’re serious until they move management back to Seattle instead of intentionally keeping themselves ‘remote’ in Chicago.

This made me look up the background to the move to Chicago. An interesting article came up:

The Long-Forgotten Flight That Sent Boeing Off Course

A company once driven by engineers became driven by finance.

www.theatlantic.com

 

[RooFlyer]

PE is all about returns on investment and has a well deserved reputation for being very focussed on those returns.

Yes, but mainly short term returns, say 5-7 years, then bail. Not a traditional airline manufacturer time frame, and that probably won’t be his focus.

A very difficult job to do - satisfying investors, customers, regulators even the flying public ( a bit). I hope he does well.

 

[V Singh]

This made me look up the background to the move to Chicago. An interesting article came up:

The Long-Forgotten Flight That Sent Boeing Off Course

A company once driven by engineers became driven by finance.

www.theatlantic.com

Interesting article..What could happen when strategic change in management brings about change in focus..when a successful engineering-driven company becomes a financially driven company..

 

[jb747]

Yes, but mainly short term returns, say 5-7 years, then bail. Not a traditional airline manufacturer time frame, and that probably won’t be his focus.

A very difficult job to do - satisfying investors, customers, regulators even the flying public ( a bit). I hope he does well.

Well, I expect the investors won’t be terribly happy if the single aisle business collapses. Classic silly business model. Forget about your core business for short term investor gain...and then the investors are wiped out when the business has no core to fall back on.

 

[Port Power]

Yesterday I was listening to Geoffrey Thomas, editor of airlineratings.com. He reminded us that the original crashes were due to poor pilot training. Remember that first pilot had failed in the simulator three times but still got his ticket? The wheel that spins forward or backwards just had to be switched off. So now systems have to be adjusted so that poorly trained pilots won’t have a problem. All those competent pilots were fine. Training standards of those two airlines were at fault rather than a Boeing. Evidently media and public outrage against Boeing in the USA has brought about this resignation.

 

[jb747]

Yesterday I was listening to Geoffrey Thomas, editor of airlineratings.com.

Remind me again of how much flying time Geoffrey Thomas has.

Utter. Complete. Total rubbish.

 

[flyer89]

Remind me again of how much flying time Geoffrey Thomas has.

Utter. Complete. Total rubbish.

Does time spent in business and the chairman’s lounge count?

 

[p--and--t]

Damn wish they'd sack me.

An all to familiar story on big corporate's (including AU). Bankrupt or nearly bankrupt a company through incompetence, sloth or corruption and get a huge payout to remove you.

 

[jenib]

Here is an interesting article about how Boeing intends to help airlines convince passengers to fly on the max. Doesn’t convince me

Redirect Notice

 

[jb747]

Paywalled.

 

[jenib]

Paywalled.

Try opening it in incognito mode or I got access by googling.

 

[jb747]

Ok, found a site that wasn't...

Love this

For instance, if a traveler doesn’t want to fly after buying a ticket, getting to the airport gate or even after boarding the plane, Boeing says the airline could offer to rebook a flight, have flight attendants or pilots talk to the concerned passenger or hand out 3-by-5-inch information cards detailing why the Max is safe.

Have flight attendants talk to a passenger... I immediately have to question what a flight attendant would know about flight controls.

Have the pilots talk. Well, firstly they're captive to the job, so they may not like the aircraft either. So, 40% of the passengers. That should take a while.

An information card. Oh...cardboard spam. That will work.

Refund. Yes...this will be the only viable answer. Immediate and without question. Can't see too many airlines going with this.

 

[Mr Pumblechook]

What a sad decline Boeing used to convince people that its aircraft were reliable by building reliable aircraft. Now it builds shoddy cough and hands out little cards to the passengers to try and convince them to step on board.