New Boeing boss prepares to unveil €5.4bn cost over 737 Max crisis

New Boeing boss prepares to unveil €5.4bn cost over 737 Max crisis

The opening gambits by Boeing’s new boss show the risks Dave Calhoun is willing to take to reset the deeply troubled planemaker.

Mr Calhoun, who officially took charge this week, pushed to release humiliating internal messages last week even though they may darken public perception for years to come — with Boeing’s own employees suggesting rot in a once-vaunted safety culture, and mocking designers and regulators on the ill-fated 737 Max.

He also was heavily involved in the decision to drop Boeing’s long-held opposition to simulator training for Max pilots, sources said.

Those steps are just the start as Mr Calhoun settles into a 36th-floor suite at Boeing’s Chicago headquarters, entrusted with turning around a company that has been widely censured for its arrogance, failure to take responsibility after two crashes killed 346 people, and unrealistic estimates of when the Max would be cleared to fly again.

The bungling cost former CEO Dennis Muilenburg his job, and the bad news is far from over: Boeing is expected to reveal one of the largest writedowns in its history this month along with fourth-quarter results.

“The company has a unique opportunity to get all the bad news on the table now,” said Jim Schrager, professor of entrepreneurship and strategy at the University of Chicago’s Booth School of Business.

It’s time to get this right and make the turnaround.

The accounting charge is likely to be in the $6bn (€5.4bn) range, said Cowen & Co. analyst Cai von Rumohr, as Boeing’s reserve to compensate airlines balloons to $12bn.

That’s another risk for investors, who have taken a hit from the crisis while dodging a full-fledged meltdown.

- Bloomberg

More on this topic

Financier’s fresh investment doubts add to Boeing’s 737-Max headachesFinancier’s fresh investment doubts add to Boeing’s 737-Max headaches

Airlines scramble to secure simulators for when 737 Max finally returnsAirlines scramble to secure simulators for when 737 Max finally returns

Boeing urged to drop ''Max'' brand name from grounded 737Boeing urged to drop ''Max'' brand name from grounded 737

Aviation industry’s very long bull runAviation industry’s very long bull run

More in this Section

Devolved nations will have say in Brexit trade talks, says GoveDevolved nations will have say in Brexit trade talks, says Gove

Expert calls for public register of mortgages sold to vulturesExpert calls for public register of mortgages sold to vultures

Huawei bosses react to 5G network decision on ‘high-risk vendors’Huawei bosses react to 5G network decision on ‘high-risk vendors’

Ryanair warns of more job losses over 737-Max groundingRyanair warns of more job losses over 737-Max grounding


Lifestyle

Fresh water no filter: #instagood.The 10 most Instagrammed lakes in the world

A stay at tranquil hideaway The Residence is an indulgent way to unwind, rest and recuperate, says Sophie Goodall.Why this luxurious Turkish resort is the ultimate sanctuary for wellness and relaxation

The benefits of cutting down on booze can last way beyond the new year. Lauren Taylor finds out more about strategies to help make the change stick.Beyond Dry January: Is it time to reassess our relationship with alcohol in the longer term?

More From The Irish Examiner