17 November 2008

OK So no SPEEA but Boeing is not in good shape

A nice piece in the local Seattle PI Newspaper.
http://seattletimes.nwsource.com/html/boeingaerospace/2008393300_boedelays15.html

Boeing is going to be in a world of hurt with its customers. The noises about the use of contractors that has dogged the 787 program doesn't take into consideration that Boeing supply chain has been suffering of late. The impact of the strike by the Machinists is going to be felt more than the 57 days of actual work stoppage.

So despite the SPEEA agreeing to a new contract Boeing has some significant issues to deal with.

1. A supply chain in tatters.
2. Travel (Remedial) work on upward of 110 737 shipsets (the corrosive fasteners problem) many of which have already been delivered and which now have to be taken out of service and reworked to replace a significant number of fasteners per aircraft.
3. Delays on several major projects:
747-8 (Freighter and Passenger up to a year each)
777 Freighter Delay 3 months
787 some people are saying it will eventually by a 3 year delay before the production schedule meets the expected run rates.
737 delays due to the travel work
4. Lack of engineering resources
5. Issues related to the availability of design resources before Boeing can hope to tackle the 737 replacement
6. Significant reductions in orders and cancellations that are being brought about by airline failures and financial cut backs.
7. A need to ramp up production of the 767 to make up for the delays in 787 program
8. A stronger Airbus who seems to be ahead of their rival in getting their house in order.

Ugh...

So Scott Carson and Co need to roll up their sleeves and get its major programs back under control.

Cheers

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