Boeing's cash burn, CEO plane perks, and more airlines news
Boeing is raising billions of dollars to make up for all the cash it’s been having to spend dealing with the fallout from its 737 Max problems. Outgoing CEO Dave Calhoun’s stewardship of the company in the run-up to that plane’s latest issue, a January door plug blowout on an Alaska Airlines-operated 737 Max 9, is the reason that proxy advisor Glass Lewis is suggesting shareholders remove him from the company’s board. Plus, corporate America’s c-suite titans are allegedly saving millions of dollars using corporate jets for personal travel.
Take a moment to catch up on what’s been happening in the world of airlines.
Big CEOs save big bucks on their private plane perks
It’s hardly a secret that many executives in corporate America make personal use of corporate jets. But a Wall Street Journal analysis shows that they’re doing it way more than they used to.
Boeing is borrowing $10 billion as it burns cash fixing its issues
Boeing successfully raised $10 billion from public credit markets Monday, Bloomberg reports. The cash comes at a critical time when the company is still struggling to clean up the mess from its 737 Max 9 door plug blowout in January and get its production numbers back up to speed.
Boeing’s outgoing CEO has no place on the company’s board, a major proxy advisor says
Boeing CEO Dave Calhoun has already announced plans to step down at the end of the year. As a part of that plan, he had intended to stick around for a little bit after his tenure as a member of the company’s board of directors. But proxy advisor Glass Lewis doesn’t think he should stick around at all.
Boeing’s next threat could come from Brazilian plane maker Embraer
If Boeing doesn’t get its act together in the next decade or so, Airbus won’t be the only plane-making competitor it will have to worry about. The Wall Street Journal reports that Brazilian manufacturer Embraer is mulling the development of a plane that could compete with Boeing’s 737 Max models.
A key Boeing supplier might have a solution to its production woes
One of Boeing’s big problems at the moment is that it can’t build planes as quickly as it and its customers would like. But a key supplier is teasing that it has figured out a way to help Boeing become more productive.
Boeing tells suppliers to ‘keep your foot on the gas’ as it falls behind on deliveries
Beleaguered manufacturer Boeing needs to put together airplanes and send them to airlines. But ever since one of those planes lost a piece of its fuselage mid-flight in January, it hasn’t been able to put together planes as quickly as it or those airlines would like. But it’s still telling suppliers to keep the parts for those planes coming as fast as possible.