Boeing is slowly climbing its hill towards recovery. The last few years saw the firm tumble on the back of a host of crises of its own making. It’s coming back together, but the question remains: can it remain relevant without a big capital pool to spend on developing the next generation of aircraft, in the face of new competition?

Boeing has just raised $21 bln of new capital – to keep the doors open. That is not a great look. It’s a saga of management and corporate failure unmatched in recent history. The consequences for global aviation are immense. I’m waiting to pick over the bones…

Blain’s Morning Porridge 16th October, 2024: Boeing, throwing the dice [...]

This is shaping up as another tense week on the ongoing uncertainty of the US Election. Harris or Trump? Equally important - will either win the whole suite of White House, Senate and Congress, avoiding political gridlock, but potentially unleashing a deluge of uncertainty on the US Bond market?

30,000 Boeing Workers are on strike, further slowing airline deliveries, backing up supply chains and creating higher costs for passengers. With a potential downgrade to junk, and an emergency capital raise in view – is the Boeing End Game approaching?

Every corporate has its own distinct life-cycle. The Concept and Foundation are stage one. Firms evolve. Bad Management lies at the core of bad companies. Some firms become defined by it. Some firms survive and thrive. Many don’t. Few get second chances.

Discuss in terms of Tesla and Boeing.

Compare and contrast Boeing and Aramco. Boeing – an extraordinary example of corporate failure. In the Middle East, soon to be King, Crown Prince Mohammed Bin Salman of Saudi Arabia is using Aramco’s wealth to shake the current regional order.

Boeing desperately needs to get it right. Over the next 20 years, global demand will be around 35,000 new aircraft. Supply is currently a duopoly of Boeing and Airbus. To avoid it becoming an Airbus monopoly (bad for everyone), Boeing’s new management need to completely reset the firm and focus back on fundamentals – which are people rather than numbers driven.

Boeing is my pick as the worst company on the planet. Its’ stock is down 30% this year. It has failed multiple corporate governance challenges, but is also a victim of QE over-easy monetary policy: ultra-low interest rates enabled its cost-accountant management to wreck the company. Can it recover?

Boeing is a lesson in broken capitalism. It’s latest safety catastrophe highlights multiple management failures. Things are set to get worse as the Global Economy realigns and the US turns isolationist. Who will eventually dominate air travel?