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Boeing CEO to step down as 737 Max crisis worsens

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Boeing CEO Dave Calhoun will step down at the end of 2024 as part of a broad management shake-up for the embattled aerospace giant.

  • CEO Resignation: Boeing’s CEO, Dave Calhoun, is stepping down at the end of 2024 amidst ongoing challenges, including the 737 Max crisis.

  • Management Changes: Larry Kellner, the chairman, won’t seek reelection. Steve Mollenkopf will take over as chair, while Stan Deal, head of commercial airplanes, is leaving immediately. Stephanie Pope will replace Deal.

  • Industry Pressure: Airlines and regulators are demanding significant changes at Boeing due to quality and safety concerns. These issues have led to production delays, strained relationships with customers, and a decline in Boeing’s stock value.

Larry Kellner, chairman of the board, will not stand for reelection at Boeing’s annual meeting in May, Boeing said Monday.

He will be succeeded as chair by Steve Mollenkopf, who has been a Boeing director since 2020 and is a former CEO of Qualcomm. Mollenkopf will lead the board in picking a new CEO, Boeing said.

And Stan Deal, president and chief executive of Boeing’s commercial airplanes unit, is leaving the company effective immediately. Moving into his job is Stephanie Pope, who recently became Boeing’s chief operating officer after previously running Boeing Global Services.

Quality flaws

The departures come as airlines and regulators have been increasing calls for major changes at the company after a host of quality and manufacturing flaws on Boeing planes.

Scrutiny intensified after a Jan. 5 accident, when a door plug blew out of a nearly new Boeing 737 Max 9 minutes into an Alaska Airlines flight.

“As you all know, the Alaska Airlines Flight 1282 accident was a watershed moment for Boeing,” Calhoun wrote to employees on Monday.

“We must continue to respond to this accident with humility and complete transparency. We also must inculcate a total commitment to safety and quality at every level of our company.

It’s been a bad start to 2024 for Boeing.

“The eyes of the world are on us, and I know we will come through this moment a better company, building on all the learnings we accumulated as we worked together to rebuild Boeing over the last number of years,” he wrote.

“We have another mountain to climb,” Calhoun said.

“Let’s not avoid the call for action. Let’s not avoid the changes that we have to make in our factory. Let’s not avoid the need to slow down a bit and let the supply chain catch up.”

Calhoun, a more than decade-long board member at Boeing, took the top job there in January 2020 after the company ousted its previous chief executive, Dennis Muilenburg, for his handling of the aftermath of two deadly 737 Max crashes.

 

Production issues

Boeing’s production problems have delayed deliveries of new planes to customers and hampered growth plans.

CEOs of some of the company’s largest customers, including United Airlines, Southwest Airlines, and American Airlines have publicly complained about the delays.

Ryanair, Boeing’s largest airline customer in Europe, said in a statement Monday it welcomes the management changes.

“Stan Deal has done a great sales job for Boeing for many years, but he’s not the person to turn around the operation in Seattle, and that’s where most of the problems have been in recent years,” Ryanair CEO Michael O’Leary said in a video posted to social media platform X.

United’s CEO, Scott Kirby, earlier this month said he urged Boeing to stop making yet-to-be-certified Max 10 planes for the company because it wasn’t clear when the FAA would clear those aircraft to fly.

Ahron Young is an award winning journalist who has covered major news events around the world. Ahron is the Managing Editor and Founder of TICKER NEWS.

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White House blames Democrats for thousands of layoffs

Trump blames Democrats as White House layoffs thousands of federal workers amid ongoing government shutdown

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Trump blames Democrats as White House layoffs thousands of federal workers amid ongoing government shutdown

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In Short:
– Trump announced layoffs for thousands of government workers, blaming Democrats during the government shutdown.
– Job cuts affect multiple agencies, with unions filing lawsuits against the layoffs’ legality.
President Donald Trump announced layoffs affecting thousands of U.S. government workers, attributing the decision to Democrats during the ongoing government shutdown.Job cuts began at several federal agencies, including the Treasury Department, the Internal Revenue Service, and the Department of Health and Human Services, although the overall number of layoffs remains uncertain.

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Roughly 300,000 federal workers were already anticipated to leave jobs this year due to a downsizing initiative by Trump.

The layoffs come as Trump continues to pressure Democrats for government funding. Republicans, holding majorities in Congress, require Democratic support in the Senate for funding measures.

Democrats insist they will not compromise under pressure, holding Republicans accountable for job losses. Labor unions have filed lawsuits against the layoffs, arguing their legality during the shutdown.

Job Cuts

A federal court will hear the case soon. Despite legal requirements for notification before layoffs, some officials have raised concerns over the impact on federal services.

Top Republican Senator Susan Collins expressed her objection to the layoffs, emphasising the importance of federal employees.

A White House budget director confirmed the initiation of layoffs, while many federal workers are either on furlough or working without pay. The Department of Health and Human Services is particularly affected, with a substantial number of staff receiving layoff notices.

Job reductions are also reported at the Education and Commerce Departments, among others. The Department of Homeland Security has made cuts in its cybersecurity division. However, the Department of Transportation and the Federal Aviation Administration remain unaffected.


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Hamas trusts Trump, risks hostages for peace deal

Hamas trusts Trump to broker hostage deal as gamble for peace despite past concerns over Israeli actions

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Hamas trusts Trump to broker hostage deal as gamble for peace despite past concerns over Israeli actions

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In Short:
– Hamas called Trump a racist but believes he may help facilitate peace with Israel.
– Ongoing negotiations are uncertain, with Hamas optimistic despite lacking formal guarantees.
Hamas has called Donald Trump a racist and a “recipe for chaos.” However, a phone call from Trump convinced Hamas that he might facilitate a peace deal with Israel, even if they surrender their hostages.
Under the agreement, which began on Friday, Hamas will release hostages without a commitment from Israel to withdraw. This decision is seen as precarious, with fears that hostilities may resume post-release, similar to events following a previous ceasefire.Banner

During indirect negotiations, Trump’s involvement reportedly reassured Hamas leaders, bolstering their confidence in a lasting ceasefire.

Future Uncertain

Negotiations continue over details such as the timetable for Israeli troop withdrawal.

The mediating role of Qatar and Turkey has been pivotal, alongside U.S. participation, in moving discussions forward.

Hamas has shifted its stance on hostage retention, viewing it as detrimental to global support for their cause. Nonetheless, they received no formal guarantees regarding the progression towards a more comprehensive agreement to end the conflict.

Despite awareness of the risks involved in their gamble, Hamas leaders seem optimistic about ongoing talks, with pressures from mediators fostering a sense of seriousness in negotiations from both sides.

Trump’s anticipated visit to the region is expected to reinforce these developments, even as complexities remain in finalising the terms of the deal.


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Trump announces 100% tariff on China amid tensions

Trump announces 100% tariffs on China, imposing export controls after Beijing’s restrictions on rare-earth minerals escalate trade tensions

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Trump announces 100% tariffs on China, imposing export controls after Beijing’s restrictions on rare-earth minerals escalate trade tensions

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In Short:
– Trump plans a 100% tariff on China from November 1, sparking stock declines and heightening tensions.
– U.S.-China relations are strained, with potential severe impacts on U.S. industries due to export restrictions.
President Trump announced plans to impose a 100% additional tariff on China effective November 1, along with new export controls on crucial software products.
The decision follows China’s recent restrictions on rare-earth minerals, essential for industries like semiconductors and electric vehicles. Trump expressed disbelief over China’s actions, which have escalated tensions that had ostensibly improved after months of trade negotiations.Banner

The tariff announcement sparked a significant drop in U.S. stocks, marking the worst day for the S&P 500 since April.

While some administration officials advocate restarting trade talks from scratch, there is a looming opportunity for both countries to negotiate before the tariffs take effect. Trump left room for negotiations, suggesting the timeline could allow for de-escalation.

Export Controls

The conflict between the U.S. and China underscores the volatile relationship between the two major economies. Beijing’s decision to tighten export controls aims to leverage its position and weaken Trump’s negotiating stance.

The U.S. government is evaluating additional countermeasures and sanctions in response. Observers note that while both countries have expressed a desire for dialogue, securing an enduring agreement has proven challenging, with past resolutions quickly unraveling.

The potential implications of these export restrictions could be severe for various U.S. industries. Firms have warned about significant production halts if they cannot access critical rare-earth elements from China. Analysts suggest that the situation could compel both sides to reconsider their positions to prevent further economic fallout.


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