Boeing faces further turbulence
Boeing’s shares saw their best one-day performance in over five months early this week. But the plane-makers' troubles aren't over yet.
Boeing's shares jumped by 5%, their best one-day performance in over five months, early this week after the company announced that it expects the "troubled" 737 Max jet to return to service as early as January, says Peter Wells in the Financial Times. They could even resume deliveries of the jet to customers in December. The jet has been grounded since March owing to its role in two fatal air crashes, one in October 2018 and another in March 2019, with a combined number of 346 fatalities. Even after the latest news, Boeing shares are still down 16% from their pre-crash peak.
Merely getting the planes back into service may not be enough to save the job of Boeing's CEO Dennis Muilenburg, says Martin Rivers in The Guardian. His "apparent ignorance" of the 737 Max's design flaws, has been undermined by a "steady trickle" of leaked documents and the testimony of whistleblowers, and suggests that he was "blinded by a desire to stay competitive with Airbus, Boeing's European rival". He insists he won't resign, but Boeing's shareholders know that the company's future depends on the public's confidence in "reliable, airworthy" planes.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
‘Sandwich generation’ carers losing £6,000 a year to support elderly relativesMiddle-aged adults are often caught between caring for children or grandchildren and their elderly parents, leaving them taking time out of the workforce and facing a huge hit to wages while they are still trying to save for retirement. We look at the true cost of caring.
-
Ground rents to be capped at £250 a year – what does it mean for you?The government has published draft legislation which would see ground rents capped at £250 per year for leaseholders. We examine what it means for homeowners and the housing market.
