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 737MAX

Copyright(2018)The Boeing Company

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.

Not so fast, says Bloomberg's Brooke Sutherland. Boeing "feels confident" there won't be "further snags" in the quest for regulatory approval. However, getting the plane back in the sky "certainly isn't the end of this story". One problem is that airlines are signalling that they "aren't happy" with the $5.6bn in compensation that Boeing has offered so far.

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.

Recommended

The debt ceiling illustrates America’s empire of debt
US Economy

The debt ceiling illustrates America’s empire of debt

The US has never quite got the hang of the conquering business as the debt ceiling debate shows.
15 May 2023
US inflation falls to the lowest level in two years
US Economy

US inflation falls to the lowest level in two years

The rate of CPI inflation in the US slowed to its lowest rate since April 2021, suggesting the Federal Reserve’s rate hikes may be coming to an end.
11 May 2023
The top funds to invest in
Funds

The top funds to invest in

Investors continue to favour passive funds in April though figures reveal an actively managed money market fund also caught their eye. We look at wher…
3 May 2023
Is US inflation accelerating again? Figures suggest the Fed has further to go
US Economy

Is US inflation accelerating again? Figures suggest the Fed has further to go

The latest US inflation figures suggest inflation is not falling as fast as analysts had predicted. It could even be speeding up again.
14 Feb 2023

Most Popular

June’s NS&I Premium Bond prize draw - are you this month’s millionaire?
Savings

June’s NS&I Premium Bond prize draw - are you this month’s millionaire?

Two fortunate NS&I Premium Bond winners are now millionaires. Find out here if you’re one of them.
1 Jun 2023
The best one-year fixed savings accounts - June 2023
Savings

The best one-year fixed savings accounts - June 2023

You can now earn 5% on 1 year fixed savings accounts - the best rate seen in 14 years. We have all the latest rates available now.
2 Jun 2023
The top healthcare funds to buy
Investments

The top healthcare funds to buy

Increasingly rapid progress in drugs and healthcare technology makes these trusts top tips, says Max King.
1 Jun 2023