Odd Lots Lots More on the Ongoing Mess That Is Boeing
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Oct 25, 2024 Richard Aboulafia, managing director at AeroDynamic Advisory, shares his expertise on Boeing's turbulent times. He discusses the alarming 40% drop in Boeing's stock amid numerous crises, from fatal crashes to production woes. The conversation highlights Boeing's struggle to innovate while managing workforce challenges and ongoing labor negotiations. Aboulafia also underscores the company's leadership turmoil and its implications for future competitiveness in the aerospace industry, making for a deep dive into the serious crossroads facing this aerospace giant.
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Boeing's Path to Profitability
- Boeing's main profitability driver is the 737.
- Ramping up 737 production to 50+ per month is key to solving their financial issues.
Boeing's Supplier Relationships
- Boeing treated its supply base like an ATM, squeezing margins and imposing harsh terms.
- This damaged the supply chain, with suppliers viewing Boeing contracts as unprofitable.
Scrap Metal Anecdote
- Boeing claimed ownership of even scrap metal falling on the supplier's factory floor.
- This exemplifies their extreme cost-cutting measures.