Only a few weeks after the 737 MAX jet was finally cleared to resume flying after an hiatus of almost two years, prompted by safety concerns, Boeing is facing another “public-relations nightmare”, says Alan Tovey in The Daily Telegraph. The latest incident comes after one of its Boeing 777 jets was forced to make an emergency landing when an engine burst into flames, leading to “debris being scattered far and wide on the ground”. Regulators have insisted that all 128 of the 777s with the type of engine that failed be temporarily grounded and inspected.
Don’t panic, says Jon Sindreu in The Wall Street Journal. While this is “more unwelcome publicity” for an “already battered US aerospace industry”, it isn’t “another 737 MAX debacle”. The problem is likely to affect “only a small subset of the global fleet”. Only 8.3% of Boeing 777s use the engine in question, which is made by Pratt & Whitney (part of Raytheon). And the affected 777s are the kind of “big, old jets” that airlines have kept in storage in the pandemic, with less than half of them in use.
While the latest problems are unlikely to prove a threat to Boeing’s survival, they are still a “distraction” at a time when the sector is being “crushed” by Covid-19, says Lauren Silva Laughlin on Breakingviews.
Subscribe to 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
The problems underline how the attempt to copy General Electric’s focus on short-term financial performance has hampered its long-term prospects. The strategy drove its stock price to new highs under previous CEO Dennis Muilenburg, but these gains have since been wiped out.
-
Pfizer shares rise as US investor takes $1 billion stakePfizer shares are on the up since US activist investor Starboard Value built up a stake in the drug maker. But strategic options appear limited
-
Qualcomm could acquire rival Intel – but securing the deal won't be easyA tie-up between Qualcomm and its semiconductor rival Intel would be a coup. But multiple regulatory and commercial hurdles lie ahead.
-
Modi’s reforms set Indian stocks on fireIndian stocks pass a new milestone, but global fund managers are holding back. Are there signs of overheating?
-
Who is John Donahoe, the man who made Nike uncool?Nike’s 48-year success story has been put into question by John Donahoe, its outgoing CEO who knew nothing about Nike or its culture. What mistakes did he make?
-
How to invest in the quiet market monthsHere's how to invest in the quiet market months, since “sell in May” hasn’t paid off this year.
-
Spire Healthcare: invest in the booming demand for private healthcareSpire Healthcare is one of the few listed companies benefiting from the growing trend in private healthcare. Should you invest?
-
Are insurance companies a good investment?Costs may be soaring but the insurance sector is currently going through one of its most profitable periods. The market has been slow to realise the opportunity here
-
Google's legal challenges – could it be broken up?Google is fending off legal challenges from both the EU and the US. But would breaking it up actually work?
