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미국이 수요일 오전 B-1B 폭격기를 한반도 상공으로 비행했다. 남북한 지역의 긴장이 더욱 고조되는 가운데 방산업체와 상장지수펀드(ETF)에 어떤 영향을 미칠까요? 사건의 전말 (What Happened): AP통신에 따르면 한국군이 이번 폭격 훈련을 발표했다.

미국, 한반도 상공에서 B-1B 폭격기 비행: 방산업체와 관련 ETF에 미치는 영향은?

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보잉(NYSE:BA)은 737 맥스(MAX)의 생산을 늘리기 위한 지속적인 노력으로 인해 4월 상업용 항공기 배송이 감소했다고 보고했다. 4월에 이 회사는 24대의 상업용 비행기를 인도했는데, 이는 작년 26대에서 줄어든 것이다.

보잉의 상업용 비행기 납품은 제조 조정으로 인해 4월에 감소

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스티펠(Stifel)의 애널리스트 버트 W. 수빈(Bert W. Subin)은 보잉(NYSE:BA) 주식의 목표 주가를 270달러에서 260달러로 낮추었으며 매수 등급을 유지했다. 이 목표 주가의 하향 조정은 이 회사가 인도 물량이 감소를 발표한 후에 나타났다. 어제, 보잉은 이번 분기에 상업용 항공기 83대를 인도했다고 발표했는데, 이는 작년 같은 기간의 130편 대비 크게 감소한 수치이다.

보잉, 배송 침체에 직면했지만 분석가는 주문에서 밝은 점을 확인

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Goldman Sachs analyst Noah Poponak stated that their analysis suggests that The Boeing Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) (<a target="_blank" href="https://www.benzinga.com/quote/BA/analyst-ratings" rel="noreferrer noopener">Buy rating, $243 price target</a>) is expected to achieve 43 deliveries in June, comprising 34 737 MAX, three 787s, and six other aircraft.
Of these, around 26 of the 737 MAX deliveries are newly produced, with the remainder sourced from inventory. The numbers show an improvement in both total deliveries and production rates compared to earlier in the year, writes the analyst.
Boeing&#8217;s 2024 strategy starts with prioritizing product quality over immediate production ramp-up, intending to gradually boost output later in the year to meet demand, says the analyst.
Poponak says that June&#8217;s numbers mark a preliminary indicator that could support Boeing&#8217;s approach. Feedback from suppliers suggests that the company maintains monthly MAX deliveries in the 30s and mid-single digits for the 787, aligning with its strategic goals.
The analyst&#8217;s target price of $243 is based on achieving a 5.0% FCF yield on the projected 2025 free cash flow per share.
Poponak estimates EPS of $1.76 in FY24, $8.29 in FY25 and $13.52 in FY26.
However, the analyst cites risks related to air traffic growth pace, production ramp-up challenges in the supply chain, and operational performance in defense contracts.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/07/39602971/boeing-receives-order-for-four-777-freighters-from-turkish-airlines" rel="noreferrer noopener">Boeing Receives Order For Four 777 Freighters From Turkish Airlines</a>
This week, Boeing entered into a definitive agreement to purchase Spirit AeroSystems Holdings, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPR#NYSE">SPR</a>) at $37.25 a share, a 30% premium to Spirit&#8217;s<a target="_blank" href="https://www.benzinga.com/news/24/07/39578138/why-boeing-shares-are-moving-higher-monday" rel="noreferrer noopener"> closing stock price on February 29</a>.
Boeing stock has lost around 12% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;IShares U.S.&nbsp;Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>)&nbsp;and&nbsp;Invesco Aerospace&nbsp;&amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: BA shares closed down 0.60% at $184.31 on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/24/07/39597632/spirit-aerosystems-ceo-a-candidate-to-lead-boeing-investors-focus-on-top-post" target="_blank" rel="noreferrer noopener">Spirit AeroSystems CEO A Candidate To Lead Boeing? Investors Focus On Top Post</a></li>
</ul>

Boeing Set For Improved Deliveries And Production Rates, Goldman Sachs Analyst Says

Investors are zeroing in on Boeing Co&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) <a href="https://www.benzinga.com/24/07/39567358/boeing-to-acquire-spirit-aerosystems-for-4-7b-after-months-of-negotiations">acquisition of its supplier</a>, Spirit AeroSystems Holdings Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPR#NYSE">SPR</a>), and whether it will affect the airplane manufacturer&#8217;s ongoing search for a new CEO.
What Happened: The search follows CEO Dave Calhoun&#8216;s announcement in March that he <a href="https://www.benzinga.com/news/large-cap/24/03/37911999/boeing-ceo-dave-calhoun-to-resign-in-2024-as-part-of-major-leadership-overhaul-eyes-of-the-world-a">would step down by the end of the year</a>. Potential candidates include Patrick Shanahan, Spirit AeroSystems&#8217; current CEO, Boeing COO Stephanie Pope, and board chair Steve Mollenkopf.
Patrick Shanahan, known for his previous tenure at Boeing where he earned the nickname &#8220;Mr. Fix-It,&#8221; is considered a significant contender for the CEO position, reported Reuters.
Shanahan took over as Spirit&#8217;s CEO last October, aiming to stabilize operations and improve cash flow. However, a January incident involving a<a href="https://www.benzinga.com/24/01/36750759/i-am-angry-says-alaska-airlines-ceo-on-boeing-737-max-9-mid-air-blowout-reveals-many-loose-bolts-fou"> mid-air panel blowout on a 737 MAX</a> has posed challenges to his turnaround plans.
Following the incident, Spirit committed to investing in autonomous technology, increasing mechanic training, and enhancing inspection processes. 
Also Read:<a href="https://www.benzinga.com/markets/equities/24/07/39570406/justice-department-moves-to-charge-boeing-over-fatal-crashes-report"> Justice Department Moves To Charge Boeing Over Fatal Crashes: Report</a>
Why It Matters: In May, Spirit announced <a href="https://www.benzinga.com/m-a/24/05/38894593/spirit-aerosystems-to-lay-off-hundreds-as-boeing-struggles-with-production">plans to lay off several hundred workers</a> in Wichita, Kansas, as part of efforts to shore up liquidity.
Despite these challenges, some industry insiders believe Shanahan&#8217;s long association with Boeing may affect his chances of securing the top job.
Boeing&#8217;s acquisition of Spirit AeroSystems, set to close by mid-2025, reflects broader changes within the company. Ernest Arvai, president of AirInsight Group, noted that while Shanahan&#8217;s deep ties to Boeing&#8217;s culture are evident, the company may need fresh leadership to drive cultural change. 
Price Action: Boeing stock has lost more than 11% in the last 12 months. Investors can gain exposure to the stock via IShares U.S. Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Invesco Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
BA shares are trading lower by 0.43% at $185.90 in premarket at last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/24/06/39503499/faa-issues-new-safety-directive-for-boeing-757-200-over-cracking-concerns">FAA Issues New Safety Directive For Boeing 757-200 Over Cracking Concerns</a></li>
</ul>

Spirit AeroSystems CEO A Candidate To Lead Boeing? Investors Focus On Top Post

Boeing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) reportedly faces serious criminal charges from the U.S. Justice Department related to two <a target="_blank" href="https://www.benzinga.com/government/20/09/17529184/boeing-and-faa-share-blame-for-deadly-737-max-crashes-congressional-report" rel="noreferrer noopener">fatal 737 MAX crashes</a>, with the department expected to offer Boeing a plea agreement, which includes a substantial financial penalty and the imposition of an independent monitor to oversee the company&#8217;s safety and compliance practices for three years.
The Justice Department&#8217;s offer is non-negotiable, giving Boeing until the end of the week to respond. Should Boeing decline the plea deal, prosecutors plan to bring the company to trial, reported Reuters.
The decision to charge Boeing comes after the company <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39307378/boeing-insists-on-adherence-to-legal-agreement-post-737-max-crashes-report" rel="noreferrer noopener">allegedly violated a 2021 agreement </a>that shielded it from prosecution over the 2018 and 2019 crashes, which resulted in 346 deaths.
The plea agreement would compel Boeing to admit to conspiring to defraud the U.S. Federal Aviation Administration (FAA) regarding these incidents.
If Boeing agrees to the plea, it would face financial loss, including a $487.2 million penalty, only half of which is new since previous payments are credited.
Also Read: <a target="_blank" href="https://www.benzinga.com/24/07/39567358/boeing-to-acquire-spirit-aerosystems-for-4-7b-after-months-of-negotiations" rel="noreferrer noopener">Boeing To Acquire Spirit Aerosystems For $4.7B After Months Of Negotiations</a>
The proposed agreement also includes potential restitution and a three-year probation period. Moreover, Boeing&#8217;s ability to secure government contracts, including those with the U.S. military, could be jeopardized, although companies with felony convictions can apply for waivers.
Victims&#8217; families were informed of the Justice Department&#8217;s decision during a call and expressed anger at the proposed plea deal, considering it <a target="_blank" href="https://www.benzinga.com/news/24/06/39408346/boeing-737-max-crash-victim-families-call-for-25b-fine-as-ceo-dave-calhoun-gets-grilled-by-senators" rel="noreferrer noopener">insufficient to hold Boeing accountable</a>.
The Justice Department&#8217;s push for a guilty plea follows recent safety concerns, including a <a target="_blank" href="https://www.benzinga.com/markets/equities/24/01/36526743/over-170-boeing-737-max-9s-grounded-as-alaska-air-passengers-recall-terrifying-incident" rel="noreferrer noopener">January incident where a panel blew off </a>a 737 MAX 9 jet during an Alaska Air Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALK#NYSE">ALK</a>) flight.
This incident occurred just days before Boeing&#8217;s deferred prosecution agreement from 2021 expired.
In June, U.S. lawmakers questioned Boeing&#8217;s CEO Dave Calhoun about the company&#8217;s safety record. Family members&#8217; lawyers referenced these criticisms in their <a target="_blank" href="https://www.benzinga.com/government/24/06/39387675/boeing-stock-grounded-after-ceo-testimony-to-congress-issues-before-us-today-have-real-human-consequ" rel="noreferrer noopener">push for tougher penalties and prosecution</a>.
Boeing stock has lost more than 13% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;IShares U.S.&nbsp;Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Invesco Aerospace&nbsp;&amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: BA shares closed lower by 0.27% at $182.01 on Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Related Read: <a href="https://www.benzinga.com/markets/equities/24/06/39553077/southwest-airlines-faces-scrutiny-over-recent-closed-runway-takeoff-report" target="_blank" rel="noreferrer noopener">Southwest Airlines Faces Scrutiny Over Recent Closed Runway Takeoff: Report</a>
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Justice Department Moves To Charge Boeing Over Fatal Crashes: Report

Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) is facing significant financial and production challenges following a January incident where a panel <a target="_blank" href="https://www.benzinga.com/24/01/36750759/i-am-angry-says-alaska-airlines-ceo-on-boeing-737-max-9-mid-air-blowout-reveals-many-loose-bolts-fou" rel="noreferrer noopener">blew out mid-air on a 737 MAX jet</a>.
Despite these issues, the International Association of Machinists and Aerospace Workers (IAM) reportedly remains resolute in their readiness to strike if necessary to secure better retirement benefits and wage increases for over 30,000 workers in Washington state.
The IAM is pushing for wage hikes exceeding 40% over the next three to four years and enhanced retirement benefits, reported Reuters.
Union president Jon Holden of IAM District 751 emphasized that workers are committed to achieving a favorable agreement, even if it means striking.
The strike authorization vote is set for July 17, but any strike action would not occur until after the current contract expires on September 12.
During ongoing negotiations, Boeing has resisted union demands for higher wages and a seat on the company&#8217;s board of directors.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/06/39503499/faa-issues-new-safety-directive-for-boeing-757-200-over-cracking-concerns" rel="noreferrer noopener">FAA Issues New Safety Directive For Boeing 757-200 Over Cracking Concerns</a>
Holden stated, &#8220;They&#8217;re not open to it at this point. But it&#8217;s important for us to continue to push because it is about ensuring that those at the highest level of this company understand that they are missing the voice of workers.&#8221;
The crisis deepened for Boeing after the January incident <a target="_blank" href="https://www.benzinga.com/government/24/02/36965801/boeing-737-max-door-plug-that-flew-off-alaska-air-flight-missing-4-key-bolts-preliminary-ntsb-report" rel="noreferrer noopener">involving an Alaska Airlines 737 MAX</a>.
The company&#8217;s CFO indicated that <a target="_blank" href="https://www.benzinga.com/news/24/05/38992323/boeing-stock-falls-as-cfo-forecasts-negative-cash-flow-delivery-delays-amid-regulatory-scrutiny" rel="noreferrer noopener">Boeing expects to burn cash in 2024</a> and does not foresee an increase in deliveries for the second quarter.
Additionally, the U.S. government sanctioned Boeing for disclosing details of the <a target="_blank" href="http://Boeing Faces Sanctions From NTSB Over Unauthorized Release Of 737 MAX Investigation Details" rel="noreferrer noopener">panel blowout investigation during a media event.</a>
Workers demonstrated at Boeing&#8217;s Renton plant to coincide with a media tour showcasing quality improvements. Holden mentioned that the union has yet to see Boeing&#8217;s 90-day quality improvement plan, although Boeing claims to have discussed it with him.
Boeing stock has lost more than 13% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;IShares U.S.&nbsp;Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Invesco Aerospace&nbsp;&amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: BA closed higher by 2.25% at $182.51 on Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/06/39452259/boeing-risks-criminal-charges-as-us-prosecutors-reportedly-target-compliance-failures-post-737-m" target="_blank" rel="noreferrer noopener">Boeing Risks Criminal Charges As US Prosecutors Reportedly Target Compliance Failures Post-737 MAX Crashes</a>
Photo via Shutterstock

Boeing's Labor Countdown: Union Stands Firm As Strike Vote Looms

The Federal Aviation Administration (FAA) has issued a new airworthiness directive targeting specific structural issues in 13 Boeing Co&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) 757-200 airplanes registered in the U.S., aiming to mitigate the risk of in-flight problems due to identified fatigue cracking.
The directive follows reports of potential cracking around the lavatory service panels on these aircraft, according to a Reuters report.
The FAA has pinpointed excessive stress concentrations at the lavatory service panel access pan, the fuselage skin, and the stringer 22 attachment point as the primary concern.
If unaddressed, these issues could lead to significant in-flight depressurization and compromise the aircraft&#8217;s structural integrity, emphasizing the critical nature of these repairs.
Airworthiness directives like this one are legally binding rules issued by the FAA to rectify unsafe conditions discovered in aircraft.
Also Read:&nbsp;&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/06/39496118/elon-musk-takes-a-dig-at-dave-calhoun-amid-boeings-starliner-crisis-ceo-of-an-aircraft-company-shoul" rel="noreferrer noopener">Elon Musk Takes A Dig At Dave Calhoun Amid Boeing&#8217;s Starliner Crisis: &#8216;CEO Of An Aircraft Company Should Know How To Design Aircraft, Not Spreadsheets&#8217;</a>
They require aircraft operators to perform specified inspections or repairs to ensure continued safety and compliance.
This particular directive affects Boeing 757-200 planes that have undergone modifications under specific supplemental-type certificates. These modifications have been identified as contributing factors to the stress that leads to cracking.
Boeing, under scrutiny after multiple flight incidents, including the Alaska Air Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALK#NYSE">ALK</a>) blowout, faces a <a target="_blank" href="https://www.benzinga.com/news/24/03/37580235/boeing-faces-enormous-scrutiny-after-recent-mishaps-report" rel="noreferrer noopener">criminal investigation by the Justice Department.</a>
Also, Boeing may face potential criminal charges as U.S. prosecutors reportedly recommend legal action against the aerospace giant after the company allegedly breached a 2021 deferred prosecution agreement <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39452259/boeing-risks-criminal-charges-as-us-prosecutors-reportedly-target-compliance-failures-post-737-m" rel="noreferrer noopener">following two fatal 737 MAX crashes.</a>
Boeing stock has lost more than 14% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;IShares U.S.&nbsp;Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Invesco Aerospace&nbsp;&amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: BA shares are trading lower by 0.08% at $174.97 at the last check on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/06/39470596/boeing-offers-to-acquire-spirit-aerosystems-in-35-per-share-deal-funded-mostly-by-stock-report" target="_blank" rel="noreferrer noopener">Boeing Offers To Acquire Spirit Aerosystems In $35 Per Share Deal Funded Mostly By Stock: Report</a>
Photo via Shutterstock.

Regulations

FAA Issues New Safety Directive For Boeing 757-200 Over Cracking Concerns

Stifel analyst Bert W. Subin expressed his view on The Boeing Company&#8217;s&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) reported proposition to acquire Spirit Aerosystems Holdings, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPR#NYSE">SPR</a>) in a deal valuing the <a target="_blank" href="https://www.benzinga.com//node/39470596" rel="noreferrer noopener">company at&nbsp;approximately $35 per share</a>.
Subin says that if confirmed, the buyout aligns with their expectation that Boeing would aim to offer a price reflecting a reasonable premium compared to Spirit&#8217;s pre-announcement trading level (estimated around 20%, which would represent approximately 22%).
The analyst adds that they view the $35 per share offer as reasonable for both Boeing and Spirit AeroSystems and would value Spirit AeroSystems at around $4.1 billion.
Based on Boeing&#8217;s closing price of $179.10 on Monday, acquiring Spirit AeroSystems at this price would require approximately 22.7 million shares of Boeing (~4% dilution), assuming an all-equity transaction, with potential refinancing or repayment of debt afterward, writes the analyst.
Related: <a target="_blank" href="https://www.benzinga.com//node/39430634" rel="noreferrer noopener">Boeing Nears Deal To Reacquire Spirit AeroSystems In Wake Of Airbus Negotiations: Report</a>
Apart from this, Airbus SE (OTC:<a class="ticker" href="https://www.benzinga.com/stock/EADSY#OTC">EADSY</a>), Boeing&#8217;s European competitor,&nbsp;revised&nbsp;its 2024 adjusted earnings lower by roughly EUR5.5 billion (approximately $5.9 billion), which <a target="_blank" href="https://www.benzinga.com/news/24/06/39484621/whats-going-on-with-boeing-and-spirit-aerosystems-stocks" rel="noreferrer noopener">weighs down on Boeing shares today</a>.
Truist analyst Michael Ciarmoli writes that they anticipated ongoing challenges for commercial aerospace OEMs this quarter.
However, with this downward revision and recent production delays at Boeing, the analyst anticipates these factors to further amplify downward revisions throughout the supply chain.
Ciarmoli reaffirmed confidence in the long-term recovery of commercial aerospace OEMs, having thoroughly evaluated exposure across platforms and identified potential upside within the coverage universe.
Boeing stock has lost around&nbsp;15%&nbsp;in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;IShares U.S.&nbsp;Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and&nbsp;Invesco Aerospace&nbsp;&amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: BA shares are down&nbsp;2.8%&nbsp;at&nbsp;$174.08&nbsp;at the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Aerospace Industry Faces More Downgrades, But Recovery Expected, Says Analyst

Boeing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) risks potential criminal charges as U.S. prosecutors reportedly recommend legal action against the aerospace giant, after the company allegedly breached a 2021 deferred prosecution agreement following two fatal 737 MAX crashes.
The Justice Department has until July 7 to decide on prosecuting Boeing, which could result in huge penalties. The charges stem from accusations that Boeing violated its agreement by failing to adhere to compliance measures set out in 2021, and the recommendation of prosecutors handling the case has not been previously disclosed, reported Reuters.
The original deal was intended to shield Boeing from a conspiracy to commit fraud charge if it met specific terms, including compliance reforms and regular updates.
In 2021, Boeing avoided prosecution by agreeing to a $2.5 billion settlement over allegations it deceived the Federal Aviation Administration (FAA) about the 737 MAX jets.
The settlement required Boeing to implement rigorous compliance protocols and to provide ongoing reports on its practices. However, in May, officials concluded that <a target="_blank" href="https://www.benzinga.com/news/24/05/38845748/justice-department-accuses-boeing-of-2021-settlement-breach" rel="noreferrer noopener">Boeing had failed to meet these obligations</a>.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39430634/boeing-nears-deal-to-reacquire-spirit-aerosystems-in-wake-of-airbus-negotiations-report" rel="noreferrer noopener">Boeing Nears Deal To Reacquire Spirit AeroSystems In Wake Of Airbus Negotiations: Report</a>
Boeing has denied any wrongdoing, asserting that it has <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39307378/boeing-insists-on-adherence-to-legal-agreement-post-737-max-crashes-report" rel="noreferrer noopener">adhered to the agreement&#8217;s terms</a>. Despite this, discussions between Boeing and the Justice Department continue, with no final decision reached on whether to file charges.
Potential outcomes could include extending the original agreement by another year or introducing stricter compliance measures.
Should the Justice Department pursue criminal charges, Boeing could face severe repercussions, including financial penalties and possible restrictions on its business operations.
Families of the 737 MAX crash victims have long criticized the 2021 settlement, urging prosecutors to impose a fine of $25 billion and to<a target="_blank" href="https://www.benzinga.com/news/24/06/39408346/boeing-737-max-crash-victim-families-call-for-25b-fine-as-ceo-dave-calhoun-gets-grilled-by-senators" rel="noreferrer noopener"> hold Boeing accountable through criminal prosecution</a>.
At a recent Senate hearing, Boeing CEO Dave Calhoun acknowledged the company&#8217;s safety failings and <a target="_blank" href="https://www.benzinga.com/government/24/06/39387675/boeing-stock-grounded-after-ceo-testimony-to-congress-issues-before-us-today-have-real-human-consequ" rel="noreferrer noopener">expressed apologies to the victims&#8217; families.</a>
Boeing stock has lost more than 14% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;IShares U.S.&nbsp;Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Invesco Aerospace&nbsp;&amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: BA shares closed higher by 0.15% at $176.56 on Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/news/24/06/39335955/boeing-and-airbus-under-faa-investigation-for-authenticity-of-titanium-parts-in-some-jets-report" target="_blank" rel="noreferrer noopener">Boeing And Airbus Under FAA Investigation For Authenticity Of Titanium Parts In Some Jets: Report</a>
Photo Courtesy: Tada Images On Shutterstock.com

Boeing Risks Criminal Charges As US Prosecutors Reportedly Target Compliance Failures Post-737 MAX Crashes

President Joe Biden has let up on restrictions that disallowed Ukraine&#8217;s military from sending U.S.-provided munitions into Russia in an effort to prevent <a href="https://www.benzinga.com/topic/russia-ukraine-war">further escalation of the war</a>.
According <a href="https://apnews.com/article/russia-ukraine-war-us-missiles-de0597baa92a722779769efdff580732">to</a> the Associated Press, Russia has been firing on Ukrainian targets from inside its border, treating its area as a "safe zone," said Maj. Gen. Pat Ryder, Pentagon press secretary.
"As we see those forces conducting those types of operations from across the border, we've explained Ukraine can and does have the right to fire back to defend themselves," Ryder told reporters Thursday.
This includes firing longer-range missiles beyond Kharkiv, Ukraine&#8217;s largest city, into Russia in an act of self-defense.
See Also: <a href="https://www.benzinga.com/markets/asia/24/06/39401882/putin-forges-defense-pact-with-kim-jong-un-elevating-russia-north-korea-alliance-what-it-means-for-u">Putin Forges Defense Pact With Kim Jong Un, Elevating Russia-North Korea Alliance &#8211; What It Means For US, Regional Allies</a>
Meanwhile, the Kremlin is <a href="https://www.reuters.com/world/russia-tells-us-we-need-talk-ukraine-must-be-agenda-2024-06-21/">reportedly</a> eager to hold &#8220;comprehensive&#8221; security talks with the White House as long as they include the subject of Ukraine.
&#8220;It is impossible to rip out any individual segments from the general complex of accumulated problems, and we will not do this,&#8221; Kremlin spokesman&nbsp;Dmitry Peskov said when asked if Moscow was ready to talk to Washington about nuclear risks.
Peskov told reporters that the list of topics that Russia and the U.S. needed to discuss was growing, according to Reuters.
&#8220;Overall, this dialogue is very much required,&#8221; Peskov said. &#8220;It is needed because problems are piling up, and there are a lot of problems associated with the global security architecture.&#8221;
Washington contends that Russian President Vladimir Putin is fueling security concerns by visiting nuclear-armed <a href="https://www.benzinga.com/news/24/06/39358342/amid-russian-presidents-visit-to-kim-jong-uns-north-korea-china-resumes-high-level-security-talks-wi">North Korea this week</a>. Kim Jong Un signed a mutual defense accord with Putin who indicated he might give Russian weapons to North Korea due to the Western arming of Ukraine.
<h3 class="wp-block-heading">White House Rushes Air Defense Interceptor Missiles To Ukraine</h3>
The White House is also redirecting shipments planned for other allied nations to Ukraine to counter Russia&#8217;s increased onslaught.
<a href="https://apnews.com/article/ukraine-air-defense-interceptor-missile-shipments-biden-ecd0b8fc6ab8a416a792dc90d36d11bf"></a>National security spokesman John Kirby <a href="https://apnews.com/article/ukraine-air-defense-interceptor-missile-shipments-biden-ecd0b8fc6ab8a416a792dc90d36d11bf">told</a> the Associated Press that the U.S. had taken the "difficult but necessary decision to reprioritize near-term planned deliveries of foreign military sales to other countries. 
It is not clear which nations would be affected or how many.
"Right now, we know that Ukraine urgently needs these additional capabilities," Kirby told reporters. "Obviously more is needed, and it's needed now."
The U.S. has sent Ukraine interceptor missiles for its air defense systems as Russia intensified missile and drone attacks on cities and infrastructure centers in an effort to destroy Ukraine's energy system before winter.
The number of interceptors to be sent is not yet known. Kirby said it could involve "hundreds" of Patriot interceptor missiles.
Price Action: iShares U.S. Aerospace &amp; Defense ETF (CBOE:ITA) remained flat into Friday&#8217;s mid-day trading by sliding 0.05%, while Invesco Aersospce &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>) slipped 0.27%. SPDR S&amp;P Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XAR#NYSE">XAR</a>) picked up 0.72% in mid-day trading.
Now Read: <a href="https://www.benzinga.com/news/24/06/39433371/amid-north-korea-russia-defence-pact-seoul-to-reconsider-arms-supply-to-ukraine">Amid North Korea-Russia Defence Pact, Seoul To &#8216;Reconsider&#8217; Arms Supply To Ukraine</a>
Image: Shutterstock

Government

Politics

Markets

ETFs

Ukraine Has Right To 'Fire Back' At Russia With US-Provided Munitions As Kremlin Seeks Talks With White House

Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) is reportedly close to finalizing a deal to reacquire Spirit AeroSystems Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPR#NYSE">SPR</a>), its former subsidiary, following significant progress in separate negotiations between Spirit and Airbus SE (OTC:<a class="ticker" href="https://www.benzinga.com/stock/EADSY#OTC">EADSY</a>) to divide Spirit&#8217;s projects between the <a target="_blank" href="https://www.benzinga.com/quote/BA" rel="noreferrer noopener">two aerospace giants</a>.
Boeing initiated talks earlier this year to buy back Spirit AeroSystems, aiming to stabilize its supply chain after a mid-air blowout on a 737 MAX in January.
While the exact timing remains uncertain, a deal could be reached within days or weeks, reported Reuters.
The negotiations faced challenges due to Spirit&#8217;s <a target="_blank" href="https://www.benzinga.com/markets/equities/24/05/38610474/airbus-demands-compensation-to-acquire-spirit-operations-report" rel="noreferrer noopener">ongoing work with Airbus</a>. However, Boeing and Airbus have managed to partition Spirit&#8217;s programs, ensuring both companies&#8217; needs are met, per the report.
Airbus, previously seen as a major obstacle, is reportedly making &#8220;good progress&#8221; in its discussions with Spirit.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/06/39335955/boeing-and-airbus-under-faa-investigation-for-authenticity-of-titanium-parts-in-some-jets-report" rel="noreferrer noopener">Boeing And Airbus Under FAA Investigation For Authenticity Of Titanium Parts In Some Jets: Report</a>
Spirit AeroSystems, under financial strain, reported cash used in operations of $416 million vs. $46 million a year ago and the free cash outflow of $444 million, which was impacted by <a target="_blank" href="https://www.benzinga.com/news/earnings/24/05/38672413/spirit-aerosystems-encounters-headwinds-in-q1-as-boeing-737-issues-take-toll" rel="noreferrer noopener">Boeing 737 production disruptions and delivery delays.&nbsp;</a>
Boeing&#8217;s interest in reacquiring Spirit is partly driven by concerns over the supplier&#8217;s financial stability and the need for <a target="_blank" href="https://www.benzinga.com/news/24/04/38105865/boeing-airbus-near-deal-to-divide-operations-of-key-supplier-spirit-aerosystems-report" rel="noreferrer noopener">investment in digital production systems</a>.
Airbus CEO Guillaume Faury indicated that it is &#8220;not unlikely&#8221; that Airbus might take over Spirit&#8217;s operations for key projects like the A350 and A220. The report mentioned that Airbus and Boeing have been addressing issues related to inventory costs and contract valuations.
Boeing stock has lost more than 16% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;IShares U.S.&nbsp;Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Invesco Aerospace&nbsp;&amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: BA shares are trading lower by 0.31% at $175.75, while SPR is up 4.23% at $33.00 in premarket at last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/06/39307378/boeing-insists-on-adherence-to-legal-agreement-post-737-max-crashes-report" target="_blank" rel="noreferrer noopener">Boeing Insists On Adherence To Legal Agreement Post-737 MAX Crashes: Report</a>
Photo via Wikimedia Commons

Movers

Boeing Nears Deal To Reacquire Spirit AeroSystems In Wake Of Airbus Negotiations: Report

Honeywell International Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HON#NASDAQ">HON</a>) disclosed an agreement to acquire CAES Systems Holdings LLC (CAES) from Advent International for about <a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/n39407619/honeywell-to-acquire-caes-to-enhance-defense-technologies-across-land-sea-air-and-space" rel="noreferrer noopener">$1.9 billion in an all-cash transaction</a>.
This acquisition represents about 14 times the estimated 2024 EBITDA on a tax-adjusted basis.
The buyout is expected to boost adjusted earnings per share in the first full year of ownership and is not subject to financing conditions.
The deal is anticipated to close in the second half of 2024, pending customary closing conditions and regulatory approvals.
Vimal Kapur, chairman and CEO of Honeywell said, &#8220;This acquisition further positions Honeywell at the forefront of the defense industry&#8217;s most dynamic sectors and sets the tempo for continued growth across our aerospace business,&#8221;
&#8220;With the integration of CAES&#8217; solutions and capabilities, we will fortify our existing defense offerings, while also expanding our capabilities in pivotal areas like RF, radar and sensing technologies, to ensure a market-leading position in areas that are critical for global security,&#8221; Kapur added. 
Honeywell Aerospace Technologies president and CEO Jim Currier said, &#8220;CAES&#8217; trusted position with top U.S. defense customers strengthens our existing relationships as we shape the future of the defense industry together.&#8221;
This is Honeywell&#8217;s third acquisition this year. Honeywell held cash and equivalents of <a href="https://www.benzinga.com/pressreleases/24/04/n38424276/honeywell-delivers-strong-first-quarter-results-and-beats-earnings-guidance" target="_blank" rel="noreferrer noopener">about $12 billion as of the end of March</a>.
Earlier this month, Honeywell raised its second-quarter and FY24 guidance following the completion of the acquisition of&nbsp;Carrier Global Corporation‘s&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CARR#NYSE">CARR</a>)&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39135922/honeywell-takes-flight-boosts-guidance-closes-carrier-global-transaction" rel="noreferrer noopener">Global Access Solutions business</a>.
Investors can gain exposure to the stock via&nbsp;Gabelli Commercial Aerospace And Defense ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GCAD#NYSE">GCAD</a>)&nbsp;and&nbsp;Invesco Aerospace &amp; Defense ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: HON shares are down 0.23% at $212.39 premarket at last check Thursday.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/06/39406855/whats-going-on-with-nvidia-stock-thursday">What&#8217;s Going On With Nvidia Stock Thursday?</a>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock

CARR

GCAD

Honeywell Swoops In To Acquire CAES For $1.9B, Boosts Defense Business

Shares of aircraft giant Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) are <a href="https://www.benzinga.com/quote/BA">trading lower on Tuesday</a>.
Boeing is facing fresh allegations from a quality inspector, over the alleged mishandling of hundreds of defective parts potentially installed on new 737 Max aircraft, even as the aircraft maker continues to face <a href="https://www.benzinga.com/markets/equities/24/05/39115731/boeings-737-max-production-freeze-remains-as-faa-demands-safety-overhaul">scrutiny over its manufacturing processes</a>.
Sam Mohawk, a Boeing inspector, lodged a complaint with the Occupational Safety and Health Administration on June 11, detailing the loss and mishandling of up to 400 faulty aircraft parts.
The allegations were brought to light by a U.S. Senate subcommittee, which released the details to members, <a href="https://www.bloomberg.com/news/articles/2024-06-18/boeing-may-have-installed-bad-737-parts-whistleblower-alleges?sref=TBDibEcD">Bloomberg</a> reports.
Boeing has acknowledged the receipt of the complaint and is currently reviewing the claims. The allegations have prompted intensified scrutiny from various federal agencies, including the Justice Department, which is considering charges against Boeing for past safety lapses. 
Also Read: <a href="https://www.benzinga.com/news/24/06/39335955/boeing-and-airbus-under-faa-investigation-for-authenticity-of-titanium-parts-in-some-jets-report">Boeing And Airbus Under FAA Investigation For Authenticity Of Titanium Parts In Some Jets: Report</a>
These new allegations add another layer of complexity as Boeing works to restore trust in its 737 Max series, previously <a href="https://www.benzinga.com/markets/equities/24/06/39307378/boeing-insists-on-adherence-to-legal-agreement-post-737-max-crashes-report">grounded after two fatal crashes</a>.
The Senate&#8217;s Permanent Subcommittee on Investigations, which released Mohawk&#8217;s complaint, is actively probing Boeing&#8217;s practices. 
This inquiry is part of broader efforts to ensure that manufacturing speeds and cost-cutting measures do not compromise aircraft safety.
The Federal Aviation Administration (FAA) has reported a <a href="https://www.benzinga.com/markets/equities/24/05/39009464/boeings-employee-speak-up-on-safety-quality-soar-500-after-737-max-incident-whats-the-benefit">significant increase in whistleblower activitie</a>s since early this year, underscoring a growing culture of safety awareness among Boeing employees. 
The CEO, David Calhoun, is set to appear before senators on Tuesday, where he will be questioned about the company's safety <a href="https://www.benzinga.com/markets/equities/24/06/39371119/boeings-ceo-david-calhoun-to-face-us-senators-questions-on-plane-safety-amid-ongoing-investigati">measures amid ongoing investigations</a>.
Boeing stock has lost 16% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;IShares U.S.&nbsp;Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Invesco Aerospace&nbsp;&amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: BA shares are trading lower by 2.25% at $174.45 at last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock

Travel

What's Going On With Boeing's Shares On Tuesday

Boeing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) and Airbus SE (OTC:<a class="ticker" href="https://www.benzinga.com/stock/EADSY#OTC">EADSY</a>) shares are <a target="_blank" href="https://www.benzinga.com/quote/BA" rel="noreferrer noopener">trading lower on Friday</a>.
The U.S. Federal Aviation Administration (FAA) is currently investigating the possible use of false documentation to verify titanium components in some of Boeing&#8217;s and Airbus&#8217;s aircraft, discoveries that could affect the integrity of critical aerospace materials.
The inquiry extends to both major aircraft manufacturers and focuses on the authenticity of titanium, a vital metal used throughout the aerospace industry, <a target="_blank" href="https://www.reuters.com/business/aerospace-defense/faa-investigating-counterfeit-titanium-used-some-boeing-airbus-jets-nyt-reports-2024-06-14/" rel="noreferrer noopener">Reuters</a> reports.
The issue was discovered by a vendor, who discovered corrosion holes in titanium parts, prompting the FAA to investigate immediately.
Boeing has voluntarily disclosed the procurement of potentially compromised material sourced from a distributor suspected of falsifying or providing incorrect records.
In response to these findings, Boeing has issued a bulletin to its suppliers advising them to remain vigilant against falsified records.
Spirit AeroSystems Holdings Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPR#NYSE">SPR</a>), a key supplier for both Boeing and Airbus, acknowledged that the problematic titanium had been introduced into the supply chain through counterfeit documentation, leading to the quarantine and removal of all suspect parts from production lines.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/05/39115731/boeings-737-max-production-freeze-remains-as-faa-demands-safety-overhaul" rel="noreferrer noopener">Boeing&#8217;s 737 MAX Production Freeze Remains As FAA Demands Safety Overhaul</a>
Spirit AeroSystems has conducted over 1,000 tests to verify the mechanical and metallurgical properties of the affected materials, ensuring they meet safety standards for continued airworthiness.
The investigation is set against the backdrop of an increasing demand for new aircraft driven by a resurgence in post-pandemic travel.
However, ongoing <a target="_blank" href="https://www.benzinga.com/markets/equities/24/05/39058924/boeings-production-slowdown-sends-shockwaves-through-aerospace-supply-chain" rel="noreferrer noopener">supply chain challenges</a> and component shortages are complicating efforts by manufacturers to ramp up production.
Airbus is struggling with parts and labor shortages, which are impacting its jet production timeline and could affect its goal of increasing output to <a target="_blank" href="https://www.benzinga.com/news/24/05/39112770/airbus-battles-supply-chain-headwinds-threatening-future-jet-deliveries-report" rel="noreferrer noopener">75 planes monthly by 2026</a>.
The investigation comes even as the head of the Federal Aviation Administration admitted on Thursday to insufficient oversight of Boeing following a <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39317727/whats-going-on-with-boeing-shares-today" rel="noreferrer noopener">mid-air emergency</a> involving&nbsp;Alaska Air Group, Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALK#NYSE">ALK</a>).
Boeing stock has lost 16% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;IShares U.S.&nbsp;Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Invesco Aerospace&nbsp;&amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: BA shares are trading lower by 1.66% at $177.66 at the last check on Friday. EADSY shares are trading lower by 2.32% at $39.24 at last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/06/39307378/boeing-insists-on-adherence-to-legal-agreement-post-737-max-crashes-report" target="_blank" rel="noreferrer noopener">Boeing Insists On Adherence To Legal Agreement Post-737 MAX Crashes: Report</a>
Photo Courtesy: Robin Guess Via Shutterstock

Boeing And Airbus Under FAA Investigation For Authenticity Of Titanium Parts In Some Jets: Report

Boeing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>), amid scrutiny, reportedly stated to the U.S. Justice Department that it complied with a 2021 agreement designed to avoid criminal prosecution after the 737 MAX tragedies that resulted in 346 deaths.
This assertion counters a recent governmental finding that accused the aerospace giant of failing to adhere to the terms.
According to the latest evaluations by the U.S. Justice Department in May, Boeing did not meet the criteria of designing and <a target="_blank" href="https://www.benzinga.com/news/24/05/38845748/justice-department-accuses-boeing-of-2021-settlement-breach" rel="noreferrer noopener">implementing a sufficient compliance and ethics program.</a>
The program was crucial to detecting and preventing violations of U.S. fraud laws within its operations, according to a report from Reuters.
A spokesperson from Boeing emphasized the company&#8217;s commitment to transparent engagement throughout the agreement&#8217;s duration, per the report.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/05/39115731/boeings-737-max-production-freeze-remains-as-faa-demands-safety-overhaul" rel="noreferrer noopener">Boeing&#8217;s 737 MAX Production Freeze Remains As FAA Demands Safety Overhaul</a>
Recent developments have indicated that while Boeing executives might avoid criminal charges due to statute limitations, the Justice Department maintains<a target="_blank" href="https://www.benzinga.com/news/24/06/39142764/why-is-boeing-stock-soaring-on-monday" rel="noreferrer noopener"> until July 7 to outline their prosecutorial plans.</a>
These could range from launching a criminal case to extending the deferred prosecution agreement, which would delay any immediate legal action against the company.
Earlier statements from Boeing have expressed confidence in their fulfillment of the deferred prosecution agreement&#8217;s terms and anticipate a constructive response to the Justice Department&#8217;s inquiries.
In January, <a target="_blank" href="https://www.benzinga.com/markets/equities/24/01/36526743/over-170-boeing-737-max-9s-grounded-as-alaska-air-passengers-recall-terrifying-incident" rel="noreferrer noopener">an incident involving Alaska Airlines 737 MAX</a> prompted a new investigation, raising&nbsp;fresh&nbsp;concerns about Boeing&#8217;s safety culture.
Boeing stock has lost more than 17% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;IShares U.S.&nbsp;Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Invesco Aerospace&nbsp;&amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: BA shares closed lower by 1.53% at $182.67 on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/06/39266384/boeing-close-to-securing-major-737-max-order-from-israels-el-al-report" target="_blank" rel="noreferrer noopener">Boeing Close To Securing Major 737 Max Order From Israel&#8217;s El Al: Report</a>
Photo via Shutterstock

Boeing Insists On Adherence To Legal Agreement Post-737 MAX Crashes: Report

Boeing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) is set to inaugurate a new engineering <a target="_blank" href="https://boeing.mediaroom.com/news-releases-statements?item=131436" rel="noreferrer noopener">hub </a>at the Cici &amp; Hyatt Brown Center for Aerospace Technology located at Embry-Riddle Aeronautical University in Daytona Beach, Florida.
The establishment aims to enhance engineering efforts primarily focused on military aviation programs and technology initiatives.
Steve Nordlund, Vice President and General Manager at Boeing Air Dominance, said, &#8220;Expanding both our footprint in Florida and partnership with Embry-Riddle will accelerate innovation across our combat aircraft programs.&#8221;
&#8220;We expect this location to be attractive to not only Embry-Riddle graduates, but also to established aerospace engineers from across Florida and around the nation.&#8221;&nbsp;
Boeing&#8217;s ambitious agenda includes the creation of around 200 engineering positions in 2024, with plans to potentially double this number in the forthcoming years.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39266384/boeing-close-to-securing-major-737-max-order-from-israels-el-al-report" rel="noreferrer noopener">Boeing Close To Securing Major 737 Max Order From Israel&#8217;s El Al: Report</a>
The roles will predominantly support the company&#8217;s defense and government services sectors, focusing on design, research, and prototype development.
The upcoming facility spans 65,000 square feet, including a large 40,000-square-foot hangar.
Initiated in 2022, the construction is on track for completion this fall, with the site expected to be fully operational shortly thereafter.
In May, Boeing delivered 24 commercial aircraft, approximately half of the 50 jets supplied to customers in the same month last year, <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39277102/why-boeing-company-shares-are-falling-today" rel="noreferrer noopener">maintaining a slower assembly line pace</a>.
The plane maker delivered 19 MAX jets in May, up from April but down 45% compared to May 2023 when it handed over 35 jets.
Boeing stock has lost more than 16% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;IShares U.S.&nbsp;Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Invesco Aerospace&nbsp;&amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: BA shares closed lower by 2.43% at $185.50 on Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/05/39115731/boeings-737-max-production-freeze-remains-as-faa-demands-safety-overhaul" target="_blank" rel="noreferrer noopener">Boeing&#8217;s 737 MAX Production Freeze Remains As FAA Demands Safety Overhaul</a>
Photo via Shutterstock

Boeing Sets Up New Aerospace Tech Hub At Florida

Boeing Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) is reportedly nearing what could be its second largest sale of the year for the 737 Max jets, engaging in exclusive talks with El Al Israel Airlines following a turbulent start to the year due to a significant mishap involving the aircraft model.
The deal, estimated to be worth between $2 billion and $2.5 billion, involves around 30 of Boeing&#8217;s 737 Max aircraft, including additional engines and spare parts, according to a report from <a href="https://www.bloomberg.com/news/articles/2024-06-10/boeing-set-to-land-2-billion-737-max-order-from-israel-s-el-al?srnd=industries-v2&amp;sref=TBDibEcD" target="_blank" rel="noreferrer noopener">Bloomberg</a>.
Related: <a href="https://www.benzinga.com//node/39009464" target="_blank" rel="noreferrer noopener">Boeing&#8217;s Employee Speak Up On Safety, Quality Soar 500% After 737 MAX Incident &#8211; What&#8217;s The Benefit?</a>
The new aircraft will phase out older models, specifically the 737-800 and 737-900 jets that currently make up part of El Al&#8217;s fleet.
The transition is part of the carrier&#8217;s ongoing efforts to modernize its fleet, which exclusively comprises Boeing aircraft, both narrow-body and wide-body.
El Al had previously considered a competitive bid from Airbus SE (OTC:<a class="ticker" href="https://www.benzinga.com/stock/EADSY#OTC">EADSY</a>) for the fleet upgrade, highlighting the competitive dynamics in the aircraft manufacturing industry.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/05/39115731/boeings-737-max-production-freeze-remains-as-faa-demands-safety-overhaul" rel="noreferrer noopener">Boeing&#8217;s 737 MAX Production Freeze Remains As FAA Demands Safety Overhaul</a>
This potential agreement marks a significant rebound for Boeing, which faced intense scrutiny and criticism from regulators, legislators, and the <a target="_blank" href="https://www.benzinga.com/government/24/02/36965801/boeing-737-max-door-plug-that-flew-off-alaska-air-flight-missing-4-key-bolts-preliminary-ntsb-report" rel="noreferrer noopener">airline industry following a January incident</a>.
During that event, a fuselage panel detached from a 737 Max during flight, sparking safety concerns and investigations.
The deal with El AI is <a target="_blank" href="https://www.benzinga.com/markets/equities/24/03/37463518/american-airlines-shares-are-declining-today-whats-going-on" rel="noreferrer noopener">second only to an earlier order in March</a> by American Airlines Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAL#NASDAQ">AAL</a>), which included 85 of the same model, showcasing a recovering trust in the 737 Max&#8217;s safety enhancements.
Boeing stock has lost more than 14% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;IShares U.S.&nbsp;Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Invesco Aerospace&nbsp;&amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: BA shares are trading lower by 0.44% at $189.28 in premarket at the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next:<a href="https://www.benzinga.com/news/24/06/39137671/new-boeing-ceo-must-learn-from-crisis-iata-head" target="_blank" rel="noreferrer noopener"> New Boeing CEO Must Learn From Crisis: IATA Head</a>
Photo Courtesy: Tada Images On Shutterstock.com

Boeing Close To Securing Major 737 Max Order From Israel's El Al: Report

The U.S. flew a B-1B bomber over the Korean Peninsula Wednesday morning. Amid greater <a href="https://www.benzinga.com/news/24/05/39107666/after-sending-balloons-filled-with-manure-kim-jong-uns-north-korea-fires-18-missiles-in-warning-to-s">escalation of tension </a>in the region between North Korea and South Korea, how does it affect defense companies and <a href="https://www.benzinga.com/etfs">exchange-traded funds (ETFs)</a>?
What Happened: The South Korean military announced the bombing drill, <a href="https://apnews.com/article/north-korea-us-bomber-jdam-aa288f398e1387abe3d7eea82e2b2c2d">according</a> to the Associated Press. 
During the training drill, the B-1B bomber dropped Joint Direct Attack Munitions (JDAMs) while being escorted by South Korean jets. 
Why it Matters: Both the B-1B bomber and JDAMs are <a href="https://www.boeing.com/defense/b-1b-lancer">manufactured</a> by Boeing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>). 
Other U.S. weapons manufacturers actively supply the South Korean military. Rtx Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>), formerly Raytheon, supplies aerospace <a href="https://raytheon.mediaroom.com/2024-02-13-RTXs-Pratt-Whitney-receives-a-355-million-F100-engine-sustainment-contract-for-South-Koreas-F-15s,-F-16s">engines</a> and <a href="https://www.rtx.com/news/news-center/2023/05/15/raytheon-technologies-upgrading-korea-aerospace-industries-fa-50-aircraft-with-p">radar</a> technology to South Korea. Northrop Grumman Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOC#NYSE">NOC</a>) supplies South Korea with mine detection radar <a href="https://news.northropgrumman.com/news/releases/northrop-grumman-awarded-mine-detection-contract-for-the-republic-of-korea">technology</a>.
The U.S. has <a href="https://www.benzinga.com/markets/equities/24/02/37111669/95b-ukraine-aid-bill-republicans-challenge-historical-views-on-foreign-policy-us-role-as-worlds-">recently spent billions</a> on military operations in Ukraine, Israel and Taiwan. Escalation in the Korean Peninsula could also draw the attention of U.S. legislators.
There are many defense-themed ETFs that are heavily weighted towards the defense contractors mentioned above, including the iShares US Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>), the iShares U.S. Aerospace &amp; Defense Index ETF (TSE: XAD) and the Invesco Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action:
<ul>
<li>Boeing traded at $189.65, up 0.55%.</li>
<li>RTX traded at $108.42, up 0.48%.</li>
<li>Northrop Grumman traded at $442.74, down 1.26%.</li>
</ul>
Also Read: <a href="https://www.benzinga.com/news/24/06/39138174/kim-jong-uns-minister-says-north-korea-wont-be-sending-manure-filled-balloons-anymore-but-warns-resu">Kim Jong Un&#8217;s Minister Says North Korea Won&#8217;t Be Sending Manure-Filled Balloons Anymore But Warns Resumption If South Korea Allows Anti-Pyongyang Leaflets</a>
Image: B-1B Lancers from Military_Material (Pixabay)

US Flies B-1B Bomber Over Korean Peninsula: What It Means For Defense Companies, ETFs

On Monday, Airplane maker Boeing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) shares are trading higher after a Reuters report that said its executives are unlikely to face criminal charges over the fatal crashes in 2018 and 2019 that resulted in the deaths of 346 individuals.
The conclusion comes as the five-year statute of limitations for prosecuting most federal crimes has likely expired, according to the U.S. Justice Department officials who briefed victims&#8217; family members.
In mid-May, The Justice Department determined that Boeing <a target="_blank" href="https://www.benzinga.com/news/24/05/38845748/justice-department-accuses-boeing-of-2021-settlement-breach" rel="noreferrer noopener">violated a 2021 deferred prosecution</a> agreement (DPA) that previously protected the company from criminal charges related to the crashes.
The agreement required Boeing to avoid any further violations over a three-year period ending on January 7, 2024.
However, a significant incident two days before the agreement&#8217;s expiration raised concerns. A <a target="_blank" href="https://www.benzinga.com/markets/equities/24/01/36523143/im-going-to-die-passengers-experience-15-minute-nightmare-during-alaska-airs-harrowing-emergency" rel="noreferrer noopener">panel blew off</a> a new Boeing 737 MAX 9 jet during a January 5 Alaska Air Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALK#NYSE">ALK</a>) flight, highlighting ongoing safety and quality issues.
According to Reuters, Boeing has until June 13 to present any disagreements with the department&#8217;s findings. The Justice Department will decide by July 7 whether to prosecute, extend the DPA, or pursue other options, such as a non-prosecution agreement.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/06/39137671/new-boeing-ceo-must-learn-from-crisis-iata-head" rel="noreferrer noopener">New Boeing CEO Must Learn From Crisis: IATA Head</a>
Boeing has maintained that it has honored the terms of the agreement and looks forward to responding to the department&#8217;s findings.
Several outcomes are possible, including a new DPA, a non-prosecution agreement, or even a trial over the fraud charge.
Additionally, officials have not found evidence of felonies during the DPA term, though victims&#8217; families are urging for an enhanced sentence if Boeing is prosecuted and convicted, Reuters writes.
The Justice Department officials mentioned that proving cases of federal manslaughter or fraud involving <a target="_blank" href="https://www.benzinga.com/news/24/04/38402133/boeing-faces-potential-criminal-prosecution-as-crash-victims-families-demand-justice-throw-out-the-d" rel="noreferrer noopener">aircraft parts beyond a reasonable doubt is unlikely.</a>
Boeing stock has lost more than 14% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;IShares U.S.&nbsp;Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Invesco Aerospace&nbsp;&amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: BA shares are trading higher by 2.27% at $181.64 at the last check on Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/05/39115731/boeings-737-max-production-freeze-remains-as-faa-demands-safety-overhaul" target="_blank" rel="noreferrer noopener">Boeing&#8217;s 737 MAX Production Freeze Remains As FAA Demands Safety Overhaul</a>
Photo Courtesy: Robin Guess On Shutterstock.com

Why Is Boeing Stock Soaring On Monday?

Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) continues to <a href="https://www.benzinga.com/markets/equities/24/05/39009464/boeings-employee-speak-up-on-safety-quality-soar-500-after-737-max-incident-whats-the-benefit">grapple with safety issues</a>. 
The situation was worsened by a recent incident involving a midair panel <a href="https://www.benzinga.com/24/01/36750759/i-am-angry-says-alaska-airlines-ceo-on-boeing-737-max-9-mid-air-blowout-reveals-many-loose-bolts-fou">blowout on a nearly new 737 MAX plane. </a>
Now, the head of the International Air Transport Association (IATA) is <a href="https://www.reuters.com/business/aerospace-defense/next-boeing-ceo-should-understand-past-mistakes-airlines-boss-says-2024-06-02/">warning</a> the company to learn from past mistakes and adopting best practices. 
Willie Walsh, IATA&#8217;s Director General, spoke to Reuters at an airline conference in Dubai. He expressed approval of the steps being taken to address Boeing&#8217;s issues.
CEO Dave Calhoun, for example, will depart the company by the end of the year. Calhoun has served on Boeing&#8217;s board since 2009.
Boeing appointed Calhoun, a former exec at General Electric Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GE#NYSE">GE</a>), to be CEO in 2020. Calhoun attempted to steer the company back on track after two fatal 737 MAX crashes.
Arlington County, Virginia-based Boeing currently <a href="https://www.benzinga.com/markets/equities/24/01/36617145/passengers-hit-boeing-with-lawsuit-ill-fated-alaska-airlines-flight-was-waking-nightmare">faces legal action</a>. The company&#8217;s best-selling jet, the 737 MAX, has seen a sharp <a href="https://www.benzinga.com/markets/equities/24/05/39058924/boeings-production-slowdown-sends-shockwaves-through-aerospace-supply-chain">decline in production, further impacting its market position</a>.
Also Read: <a href="https://www.benzinga.com/markets/equities/24/05/39107502/alaska-airlines-acquires-training-facility-once-owned-by-boeing-details">Alaska Airlines Acquires Training Facility Once Owned By Boeing &#8211; Details</a>
Boeing has lost market share to competitor Airbus SE (OTC:<a class="ticker" href="https://www.benzinga.com/stock/EADSY#OTC">EADSY</a>), with its stock price dropping nearly 32% this year.
Delays in the delivery of new jets from both Boeing and <a href="https://www.benzinga.com/news/24/05/39112770/airbus-battles-supply-chain-headwinds-threatening-future-jet-deliveries-report">Airbus are contributing to broader challenges</a> within the aerospace supply chain, affecting airline growth plans. 
Walsh indicated that supply chain disruptions could persist until 2025 or 2026. Earlier this year, IATA facilitated discussions among airlines and manufacturers to find solutions to these supply chain problems. 
Boeing stock has lost more than 14% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;IShares U.S.&nbsp;Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Invesco Aerospace&nbsp;&amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: BA shares closed higher by 2.81% at $177.61 on Friday.
Disclaimer: Benzinga editors reviewed and published this content with the help of AI tools.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/05/39009464/boeings-employee-speak-up-on-safety-quality-soar-500-after-737-max-incident-whats-the-benefit">Boeing&#8217;s Employee Speak Up On Safety, Quality Soar 500% After 737 MAX Incident &#8211; What&#8217;s The Benefit?</a>
Shutterstock

Management

New Boeing CEO Must Learn From Crisis: IATA Head

The Federal Aviation Administration (FAA) will persist in holding Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) accountable after evaluating the company&#8217;s roadmap to rectify its systemic safety and quality-control issues, Administrator Mike Whitaker <a target="_blank" href="https://www.faa.gov/newsroom/faa-continues-hold-boeing-accountable-implementing-safety-and-production-quality-fixes" rel="noreferrer noopener">said </a>Thursday, after a three-hour meeting with senior Boeing leaders at FAA headquarters.
Mike Whitaker tasked Boeing in February with creating a comprehensive action plan to enhance safety standards following a <a target="_blank" href="https://www.benzinga.com/government/24/02/36965801/boeing-737-max-door-plug-that-flew-off-alaska-air-flight-missing-4-key-bolts-preliminary-ntsb-report" rel="noreferrer noopener">door plug incident</a> on a Boeing 737 MAX operated by Alaska Air Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALK#NYSE">ALK</a>).
The roadmap aims to reset Boeing&#8217;s safety culture and address findings from the FAA&#8217;s special audit and an expert review panel report.
The company developed the proposal over the past 90 days with detailed input from the FAA throughout the process.
Senior Boeing leadership <a target="_blank" href="https://www.benzinga.com/government/24/05/39087051/boeing-to-present-quality-control-plan-to-faa-in-wake-of-737-max-crisis" rel="noreferrer noopener">presented the roadmap to the FAA</a>, discussing future implementation. Boeing is now required to have a mandatory Safety Management System (SMS), ensuring a structured approach to hazard identification and risk management.
Following the January 5 incident, the FAA intensified oversight on Boeing, including increasing safety inspectors in <a target="_blank" href="https://www.benzinga.com/news/24/01/36711456/us-aviation-watchdog-recommends-expanded-checks-on-boeing-737-fleet-after-max-9-door-plug-incident" rel="noreferrer noopener">facilities and halting production expansion.</a>
Whitaker said, &#8220;On the FAA&#8217;s part, we will make sure they do and that their fixes are effective. This does not mark the end of our increased oversight of Boeing and its suppliers, but it sets a new standard of how Boeing does business.&#8221;
On Thursday morning, Whitaker met with Boeing President and CEO David Calhoun and other senior leaders to discuss the next steps.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/05/39009464/boeings-employee-speak-up-on-safety-quality-soar-500-after-737-max-incident-whats-the-benefit" rel="noreferrer noopener">Boeing&#8217;s Employee Speak Up On Safety, Quality Soar 500% After 737 MAX Incident &#8211; What&#8217;s The Benefit?</a>
Boeing must provide detailed updates on completed actions and future plans. Actions include strengthening its SMS, simplifying processes, enhancing supplier oversight, improving employee training and communication, and increasing internal audits.
The FAA will monitor Boeing&#8217;s progress through a team of subject matter experts, weekly performance reviews, and monthly progress assessments.
Enhanced oversight includes more safety inspectors at Boeing and Spirit AeroSystems Holdings Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPR#NYSE">SPR</a>) facilities, increased employee engagement, and additional inspections and audits during critical production points.
The FAA has also taken further actions as part of its aggressive oversight, including<a target="_blank" href="https://www.benzinga.com/markets/equities/24/04/38093903/boeing-faces-production-slowdown-amid-regulatory-scrutiny-prompts-industry-ripples-and-investor-" rel="noreferrer noopener"> grounding 171 Boeing 737-9 MAX aircraft</a>, increasing safety inspector presence, halting production expansion, and conducting thorough audits of Boeing&#8217;s production line.
The FAA continues to issue airworthiness certificates for newly produced Boeing 737 MAX aircraft.
The production of the 737 MAX is crucial to Boeing&#8217;s financial stability. The company&#8217;s top finance executive recently projected a <a target="_blank" href="https://www.benzinga.com/news/24/05/38992323/boeing-stock-falls-as-cfo-forecasts-negative-cash-flow-delivery-delays-amid-regulatory-scrutiny" rel="noreferrer noopener">cash burn in 2024 due to delayed deliveries</a>.
The FAA announced earlier that it would not approve any requests from Boeing for an expansion in production or additional production lines for <a target="_blank" href="https://www.benzinga.com/news/24/01/36771495/faa-halts-boeings-737-max-production-expansion-amid-quality-control-issues-wont-be-back-to-business" rel="noreferrer noopener">the 737 MAX until the quality control issues are resolved</a>.
Boeing stock has lost 16% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;IShares U.S.&nbsp;Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Invesco Aerospace&nbsp;&amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: BA shares are trading higher by 0.34% at $173.34 at the last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Boeing's 737 MAX Production Freeze Remains As FAA Demands Safety Overhaul

Boeing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) is set to present a corrective action plan to U.S. regulators to address significant quality issues within its factories. 
This move is part of the aerospace giant&#8217;s efforts to recover from a crisis that began with a <a href="https://www.benzinga.com/24/01/36750759/i-am-angry-says-alaska-airlines-ceo-on-boeing-737-max-9-mid-air-blowout-reveals-many-loose-bolts-fou">near-disaster involving a 737 Max aircraft earlier this year.</a>
CEO Dave Calhoun and Stephanie Pope, the head of Boeing&#8217;s commercial airplane division, will meet with Federal Aviation Administration Chief Michael Whitaker on Thursday in Washington to discuss the plan, <a href="https://www.bloomberg.com/news/articles/2024-05-30/boeing-set-to-provide-action-plan-to-address-faa-safety-concerns?srnd=homepage-americas&amp;sref=TBDibEcD">Bloomberg</a> reports.
Boeing aims to regain trust from customers, regulators, and legislators following months of damaging publicity related to its 737 Max planes and other quality control issues, including concerns over the inspection processes for its 787 Dreamliners.
Boeing's top executives are expected to detail their approach to improving factory conditions and ensuring stringent quality checks. 
This follows a series of incidents that have put the company under intense scrutiny. Calhoun emphasized the importance of the FAA&#8217;s thorough review of Boeing&#8217;s plan during the company's annual general meeting earlier this month.
Also Read: <a href="https://www.benzinga.com/markets/equities/24/05/39009464/boeings-employee-speak-up-on-safety-quality-soar-500-after-737-max-incident-whats-the-benefit">Boeing&#8217;s Employee Speak Up On Safety, Quality Soar 500% After 737 MAX Incident &#8211; What&#8217;s The Benefit?</a>
The ongoing challenges have severely impacted Boeing&#8217;s finances, with the company projected to burn through <a href="https://www.benzinga.com/news/24/05/38992323/boeing-stock-falls-as-cfo-forecasts-negative-cash-flow-delivery-delays-amid-regulatory-scrutiny">approximately $8 billion in cash in the first half of 2024.</a> 
Amid these financial strains, the board is also in the process of identifying a successor for Calhoun, <a href="https://www.benzinga.com/news/24/05/38906756/boeings-outgoing-ceo-dave-calhoun-reelected-to-board-despite-safety-concerns-at-company">who will step down as CEO later this year.</a>
Boeing has significantly <a href="https://www.benzinga.com/markets/equities/24/05/39058924/boeings-production-slowdown-sends-shockwaves-through-aerospace-supply-chain">slowed the production of its 737 aircraft</a> and increased inspections at Spirit AeroSystems Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPR#NYSE">SPR</a>), the primary supplier of the jet's body. 
The planemaker has implemented extensive employee training and simplified work instructions to address these issues, particularly for new hires.
The FAA has mandated that Boeing cannot increase its 737 production rates until it is confident in the manufacturer&#8217;s quality controls. This directive came after an incident in January where a door plug blew out of a nearly-new 737 Max due to poor workmanship.
Whitaker is scheduled to brief the House Transportation and Infrastructure Committee on June 4 regarding Boeing&#8217;s plans. 
Boeing stock has lost more than 16% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;IShares U.S.&nbsp;Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>) and Invesco Aerospace&nbsp;&amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PPA#NYSE">PPA</a>).
Price Action: BA shares are trading higher by 0.50% at $172.50 in premarket at the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/05/38982028/boeings-china-deliveries-hit-by-regulatory-battery-review-report">Boeing&#8217;s China Deliveries Hit By Regulatory Battery Review: Report</a>
Photo: Shutterstock

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