20 Mar

Boeing Changes Its Engineering Leadership

WRITTEN BY Anirudha Bhagat

Boeing’s top engineers

Boeing (BA) announced management changes in its commercial airplane unit. The company is facing its biggest crisis in years following two deadly crashes that involved its fast-selling 737 MAX jet. On March 19, the company named Lynne Hopper as the new vice president of engineering, according to a Reuters report that cited an email sent to employees by Kevin McAllister—the commercial airplane division’s CEO.

Boeing Changes Its Engineering Leadership

Hopper replaced John Hamilton who held two key positions in the division—vice president and chief engineer. Previously, Hopper led the Test & Evaluation team in Boeing’s Engineering, Test & Technology group.

The reshuffling is believed to be Boeing’s strategy for tackling ongoing investigations. The company doesn’t want the investigations to impact the production of its money-making 737 series planes. Hamilton will focus on the chief engineer role and the ongoing 737 MAX investigations.

In McAllister’s email, he wrote that the management changes will allow Hamilton to “fully dedicate his attention to the ongoing accident investigations.” He added that “we prioritize and bring on additional resources for the ongoing accident investigations.”

More scrutiny

Boeing’s troubles could get worse due to escalating scrutiny. Investigators’ inspection is mainly focused on the anti-stalling system, which is also known as the “MCAS” (Maneuvering Characteristics Augmentation System). Boeing uses the system in its 737 MAX series planes. The system prevents planes from entering into a stall and automatically guides the aircraft nose lower.

The initial investigation points to a fault in the MCAS system. Investigators suspect that the system might have automatically taken control during the Ethiopia and Indonesia plane crashes. Regulators and safety experts are inspecting whether the Federal Aviation Administration thoroughly checked the automated system during the approval process. They’re also checking if the pilots were trained about the system.

Following the Ethiopia air crash, Boeing is facing worldwide grounding of its 737 MAX series aircraft. The two deadly crashes in less than five months and the ongoing investigation have put Boeing’s reputation at risk, which might cause it to lose existing customers and future orders.

Currently, Boeing had ~5,000 backlog orders for its 737 MAX series planes worth over $550 billion. Among major US air carriers (IYT), Boeing has received orders for 280 jets from Southwest Airlines (LUV) and 100 plane orders each from United Airlines (UAL) and American Airlines (AAL).

Latest articles

Today, Canopy Growth announced that it acquired the Saskatchewan-based KeyLeaf Life Sciences along with entities relating to the company and its intellectual property. Here's what you need to know about the completed deal.

Yesterday, Tyson Foods (TSN) and fellow meat producers Pilgrim’s Pride (PPC) and Sanderson Farms (SAFM) took a hit to their stocks after news came out about an investigation over price-fixing allegations.

On June 24, RH (RH) was trading at $115.01, implying a rise of 21.2% since its announcement of its first-quarter earnings results on June 12. Despite the surge in its stock price, the company is still trading at a discount of 29.1% to its 52-week high.

26 Jun

Roku Stock Fell Close to 7.0% Yesterday

WRITTEN BY Aditya Raghunath

Roku stock fell 6.8% yesterday to close trading at $93.25 per share. Roku stock has lost over 9.0% in market value in the last two trading days. Prior to this pullback, Roku stock was up a whopping 235.0% year-to-date.

26 Jun

Beyond Meat Stock Up Today on New Product Launch

WRITTEN BY Rajiv Nanjapla

Today, Beyond Meat (BYND) announced that its new product, Beyond Beef, will hit markets across the US later this week.

FedEx (FDX) ended fiscal 2019 on a dismal note and reported a significant YoY decline in fourth-quarter earnings. The delivery giant posted adjusted EPS of $5.01, which was 15.2% lower than the year-ago quarter’s earnings of $5.91. The company cited sluggish revenue growth and increased expenses as the main reason behind the dismal bottom-line performance.