Now ‘is not the time’ to share financial updates – Boeing CEO
Dave Calhoun, Boeing’s CEO has shared an all-staff update as the company reported year-end results.
Unusually, Calhoun appeared reluctant to focus on fiscal and operational updates, as the embattled company deals with production delays, ‘disappointed’ stakeholders and serious quality control issues.
“While we often use this time of year to share or update our financial and operational objectives, now is not the time for that,” he wrote. “We will simply focus on every next airplane while doing everything possible to support our customers, follow the lead of our regulator and ensure the highest standard of safety and quality in all that we do. Ultimately – that is what will drive our performance”.
Stating that his focus is on Alaska Airlines Flight 1282 accident and the actions the company is taking to improve quality, Calhoun refers to ‘tough and direct’ conversations he has held with customers, regulators and lawmakers.
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“They are disappointed and we have much to prove to earn our stakeholders’ confidence,” he said. “There is no message or slogan to do that. It will take transparency and demonstrated action – that starts with each of us along with a commitment to listening to each other and speaking up”.
Despite the gravity of Calhoun’s speech, Boeing’s Q4 results were better than had been expected. A loss of $30m was less than the $140m expected and far below the $663m of a year earlier.
However, the airframe maker’s competition can taste blood. Bloomberg has reported that rival Airbus has offered some of its existing customers a chance to sell back delivery slots for aircraft, which it will then offer to United Airlines in an attempt to persuade the large U.S carrier to switch from Boeing to Airbus for it’s narrow body orders.
According to the report, United is exploring how it could potentially get out of its agreement with Boeing for hundreds of the long-delayed 737 Max 10 aircraft. However, no source is cited for Bloomberg’s claims.