Welcome to Extreme Investor Network where we bring you the latest updates and insights in the world of business news. Today, we dive into the recent developments at Boeing as CEO Dave Calhoun and other top company leaders met with the Federal Aviation Administration to present a quality improvement plan.
The FAA ordered the report following a near-catastrophic blowout of an airplane door panel on a new 737 Max 9 earlier this year. This incident led to the agency giving Boeing 90 days to come up with a plan for better staff training and production practices.
Boeing’s reputation has taken a hit as the crisis forced the company to slow down 737 Max production, affecting airline customers like United and Southwest. Boeing Chief Financial Officer Brian West mentioned that the company expects to burn cash this year instead of generating it, with a projected cash usage of $4 billion for the current quarter alone.
The 90-day plan laid out by Boeing won’t bring immediate change, but the company is determined to improve its staff training, simplify instructions for mechanics, reduce traveled work, and implement factory “stand-downs” to enhance production line efficiency.
We at Extreme Investor Network will continue to follow Boeing’s journey as they strive to overcome these challenges and regain their standing in the aviation industry. Stay tuned for more exclusive updates and insights on CNBC PRO.