Just as stock market issuance started to slow down ahead of the US Election, Boeing's capital issue of more than 20 billion dollars gave four banks a sizable payout.

Boeing's Share Sale Gives Banks Hefty Fees

Boeing announced on October 28 its plan to launch a stock offering aimed at raising up to $22 billion, a move designed to bolster its financial position during a prolonged strike by workers and to maintain its investment-grade credit rating, as detailed in a report by Reuters.

The strike, involving approximately 33,000 workers from the machinists union, began in September and has halted production of key aircraft, including the profitable 737 MAX. The company's financial health has significantly deteriorated as a result. Boeing is planning to offer 90 million shares of common stock along with $5 billion in mandatory convertible securities.

Ben Tsocanos, aerospace director at S&amp;P Global Ratings, commented on the implications of the offering, stating, "The offering is certainly favourable for credit quality. We'll factor it into our assessment of the rating in the context of continued negative free cash flow." Notably, Boeing has maintained its investment-grade rating throughout its history.

Investor interest appears robust, with reports indicating that the offerings are heavily oversubscribed, likely pricing close to the last closing price of $155 per share. In afternoon trading, shares dipped by 0.6 per cent. If demand remains high, Boeing has the option to issue an additional 13.5 million shares and increase the mandatory convertible offering by another $750 million.

Further, from Friday's closing price, Boeing could potentially raise approximately $13.95 billion from the common stock offering, with an additional $2.1 billion if the offering is oversubscribed. The mandatory convertible offering could generate up to $5.75 billion, according to a term sheet, the Reuters report detailed further.

Pricing for the offerings is anticipated to occur after market hours on Monday. The mandatory convertible securities will be marketed to investors with a dividend range of 6.0 per cent to 6.5 per cent, along with a premium of 17.5 per cent to 22.5 per cent based on the last closing price for conversion at or before the maturity date of October 15, 2027.

Maintaining its investment-grade credit rating is crucial for Boeing, especially in light of warnings from rating agencies regarding potential downgrades due to the ongoing strike. Such downgrades could increase the cost of capital for the company.

Boeing has already faced challenges due to a regulator-imposed production cap on its MAX jets following a mid-air incident earlier this year. Coupled with labour disputes, the company has reported a substantial cash burn, including a $6 billion loss in the third quarter alone. Striking workers recently rejected an improved contract offer, with their demands including a 40 per cent wage increase and a return to a defined-benefit pension plan, requests Boeing is unlikely to fulfil.

Earlier this month, Boeing secured a $10 billion credit agreement and announced plans to raise up to $25 billion through various offerings. S&amp;P has cautioned that a rating downgrade may follow if Boeing's cash balance drops below $10 billion or if it increases leverage to meet debt obligations.

As of September 30, Boeing had cash and marketable securities totalling $10.50 billion and faces $11.5 billion in debt maturities by February 2026, alongside commitments related to acquiring Spirit AeroSystems. 

The proceeds from the latest offerings are intended for general corporate purposes, which may include debt repayment.

Boeing announced on October 28 its plan to launch a stock offering aimed at raising up to $22 billion, a move designed to bolster its financial position during a prolonged strike by workers and to maintain its investment-grade credit rating, as detailed in a report by Reuters.

Boeing announced on October 28 its plan to launch a stock offering aimed at raising up to $22 billion, a move designed to bolster its financial position during a prolonged strike by workers and to maintain its investment-grade credit rating, as detailed in a report by Reuters. The strike, involving approximately 33,000 workers from the machinists union, began in September and has halted production of key aircraft, including the profitable 737 MAX. The company's financial health has significantly deteriorated as a result. Boeing is planning to offer 90 million shares of common stock along with $5 billion in mandatory convertible securities. Ben Tsocanos, aerospace director at S&P Global Ratings, commented on the implications of the offering, stating, "The offering is certainly favourable for credit quality. We'll factor it into our assessment of the rating in the context of continued negative free cash flow." Notably, Boeing has maintained its investment-grade rating throughout its history. Investor interest appears robust, with reports indicating that the offerings are heavily oversubscribed, likely pricing close to the last closing price of $155 per share. In afternoon trading, shares dipped by 0.6 per cent. If demand remains high, Boeing has the option to issue an additional 13.5 million shares and increase the mandatory convertible offering by another $750 million. Further, from Friday's closing price, Boeing could potentially raise approximately $13.95 billion from the common stock offering, with an additional $2.1 billion if the offering is oversubscribed. The mandatory convertible offering could generate up to $5.75 billion, according to a term sheet, the Reuters report detailed further. Pricing for the offerings is anticipated to occur after market hours on Monday. The mandatory convertible securities will be marketed to investors with a dividend range of 6.0 per cent to 6.5 per cent, along with a premium of 17.5 per cent to 22.5 per cent based on the last closing price for conversion at or before the maturity date of October 15, 2027. Maintaining its investment-grade credit rating is crucial for Boeing, especially in light of warnings from rating agencies regarding potential downgrades due to the ongoing strike. Such downgrades could increase the cost of capital for the company. Boeing has already faced challenges due to a regulator-imposed production cap on its MAX jets following a mid-air incident earlier this year. Coupled with labour disputes, the company has reported a substantial cash burn, including a $6 billion loss in the third quarter alone. Striking workers recently rejected an improved contract offer, with their demands including a 40 per cent wage increase and a return to a defined-benefit pension plan, requests Boeing is unlikely to fulfil. Earlier this month, Boeing secured a $10 billion credit agreement and announced plans to raise up to $25 billion through various offerings. S&P has cautioned that a rating downgrade may follow if Boeing's cash balance drops below $10 billion or if it increases leverage to meet debt obligations. As of September 30, Boeing had cash and marketable securities totalling $10.50 billion and faces $11.5 billion in debt maturities by February 2026, alongside commitments related to acquiring Spirit AeroSystems. The proceeds from the latest offerings are intended for general corporate purposes, which may include debt repayment.

Boeing eyes $22 billion stock offering to strengthen finances amid ongoing strike

Boeing Co. is planning to launch a capital raise as early as Monday, according to people familiar with the matter, in an offering that would help the troubled aeroplane maker boost its liquidity, according to a detailed report by Bloomberg.

The Bloomberg report further stated that the air-line major is set to raise more than $15 billion from the fundraising, one of the people said, adding that the amount could still rise depending on demand and need. Boeing’s advisers have been lining up potential investors for the offering, according to people familiar with the matter, who asked not to be identified as the information isn’t public as of yet.

Transaction to include shares and debt<o:p></o:p>

The transaction is likely to include shares as well as debt that can be converted into equity, the people said. The company on October 23 received clearance from the US Securities and Exchange Commission to sell as much as $25 billion of equity and debt, a move that could help Boeing avoid having its credit rating downgraded to junk.

Deliberations are ongoing and details of the offering, such as timing, could still change, the people said. A Boeing representative declined to comment on the issue. A $15 billion share sale would be the largest equity offering since SoftBank Group Corporation sold part of its stake in T-Mobile US Inc. in 2020, data compiled by Bloomberg show.

Boeing needs capital infusion to maintain an investment-grade rating<o:p></o:p>

Boeing needs the capital infusion to maintain its investment-grade rating and fund its eventual recovery from a crippling strike, now in its seventh week. The company is on pace to use around $4 billion in cash during the fourth quarter, which would bring its free cash outflow to around $14 billion for the year.

Further, the Bloomberg report explained that the plane-maker expects to continue burning cash through the first half of next year as it restarts its aeroplane factories, including the assembly lines for its cash-cow 737 Max jetliner.

Boeing factory workers voted last week to reject the company’s latest contract offer, which included a wage increase of 35 per cent spread over four years. The company plans to cut its workforce by about 10 per cent, with reductions potentially including executives, managers and employees, Chief Executive Officer Kelly Ortberg said in a memo to employees on October 11.

Boeing was weighing raising at least $10 billion by selling new stock and was working with advisers to explore its options, Bloomberg News reported earlier this month. Bank of America Corp. analyst Ronald Epstein on October 23 estimated the company would look to raise between $18 billion and $20 billion.<o:p></o:p>

The company said on October 15 that it has a separate new credit agreement in place for $10 billion, giving it “additional short-term access to liquidity as we navigate through a challenging environment.”<o:p></o:p>

The Arlington, Virginia-based company reported third-quarter results on October 23, with revenue of $17.8 billion missing expectations and its two largest businesses both reporting widening losses. Boeing shares have slumped more than 40 per cent this year.

Boeing is considering options to streamline its broad portfolio, with Ortberg having begun a review of its businesses that he expects to conclude by the end of the year. The company is weighing options for the future of its troubled Starliner space capsule program as part of the review, Bloomberg News has reported. Whereas, Reuters reported earlier this month that Boeing planned to raise around $15 billion through stock and convertible bonds.

Market participants and global investors will closely follow these developments and make informed investment decisions on the actions Boeing takes to combat the current challenging economic environment for the company.<o:p></o:p>

<o:p>&nbsp;</o:p>

Boeing Co. is planning to launch a capital raise as early as Monday, according to people familiar with the matter, in an offering that would help the troubled aeroplane maker boost its liquidity, according to a detailed report by Bloomberg.

Boeing Co. is planning to launch a capital raise as early as Monday, according to people familiar with the matter, in an offering that would help the troubled aeroplane maker boost its liquidity, according to a detailed report by Bloomberg. The Bloomberg report further stated that the air-line major is set to raise more than $15 billion from the fundraising, one of the people said, adding that the amount could still rise depending on demand and need. Boeing’s advisers have been lining up potential investors for the offering, according to people familiar with the matter, who asked not to be identified as the information isn’t public as of yet. Transaction to include shares and debt The transaction is likely to include shares as well as debt that can be converted into equity, the people said. The company on October 23 received clearance from the US Securities and Exchange Commission to sell as much as $25 billion of equity and debt, a move that could help Boeing avoid having its credit rating downgraded to junk. Deliberations are ongoing and details of the offering, such as timing, could still change, the people said. A Boeing representative declined to comment on the issue. A $15 billion share sale would be the largest equity offering since SoftBank Group Corporation sold part of its stake in T-Mobile US Inc. in 2020, data compiled by Bloomberg show. Boeing needs capital infusion to maintain an investment-grade rating Boeing needs the capital infusion to maintain its investment-grade rating and fund its eventual recovery from a crippling strike, now in its seventh week. The company is on pace to use around $4 billion in cash during the fourth quarter, which would bring its free cash outflow to around $14 billion for the year. Further, the Bloomberg report explained that the plane-maker expects to continue burning cash through the first half of next year as it restarts its aeroplane factories, including the assembly lines for its cash-cow 737 Max jetliner. Boeing factory workers voted last week to reject the company’s latest contract offer, which included a wage increase of 35 per cent spread over four years. The company plans to cut its workforce by about 10 per cent, with reductions potentially including executives, managers and employees, Chief Executive Officer Kelly Ortberg said in a memo to employees on October 11. Boeing was weighing raising at least $10 billion by selling new stock and was working with advisers to explore its options, Bloomberg News reported earlier this month. Bank of America Corp. analyst Ronald Epstein on October 23 estimated the company would look to raise between $18 billion and $20 billion. The company said on October 15 that it has a separate new credit agreement in place for $10 billion, giving it “additional short-term access to liquidity as we navigate through a challenging environment.” The Arlington, Virginia-based company reported third-quarter results on October 23, with revenue of $17.8 billion missing expectations and its two largest businesses both reporting widening losses. Boeing shares have slumped more than 40 per cent this year. Boeing is considering options to streamline its broad portfolio, with Ortberg having begun a review of its businesses that he expects to conclude by the end of the year. The company is weighing options for the future of its troubled Starliner space capsule program as part of the review, Bloomberg News has reported. Whereas, Reuters reported earlier this month that Boeing planned to raise around $15 billion through stock and convertible bonds. Market participants and global investors will closely follow these developments and make informed investment decisions on the actions Boeing takes to combat the current challenging economic environment for the company.

Boeing aims for capital boost exceeding $15 billion beginning Monday

Things aren't going well for the American aerospace giant Boeing. There's been serious quality issues with a whole host of Boeing's flying machines. From planes to spacecraft to satellites, there's trouble mounting all around for Boeing. Watch this report to know more.

Boeing Faces Crises Across Multiple Sectors

Boeing shares closed about 1.5 per cent lower in market trading on October 24 after workers voted to extend a nearly six-week-old strike, throwing fresh uncertainty over the company's efforts to stabilize finances and restore its battered image according to a detailed report by Reuters.

The Reuters report further stated that some 64 per cent of West Coast factory workers on Wednesday rejected the company's latest contract offer, leaving assembly lines idle for nearly all the planemaker's commercial jets including the 737 MAX, the backbone of its balance sheet.

Basic details about the offer<o:p></o:p>

The offer included a 35 per cent general wage increase over four years but no defined benefit pension plan, which was one of the striking machinists' main demands. The rejection is a blow for new CEO Kelly Ortberg, who took the top job in August on a pledge to work more closely with factory workers than his predecessors.

Deadlock over the pension plan, which was withdrawn following a deal to keep jobs in Washington state a decade ago, raised immediate concerns over a longer strike as rating agencies monitor Boeing for a possible downgrade to junk status.

"A longer strike delays Boeing's recovery and increases financial pressure on the company and its (credit) rating," said Ben Tsocanos, aerospace director at S&amp;P Global Ratings. "The rejection raises the risk of a protracted strike if the obstacle is reinstatement of a pension. We believe the company is not likely to agree to a pension because of the cost."

Challenges for the company mount<o:p></o:p>

While others said the continued stoppage leaves the plane-maker with dwindling options as it continues to bleed cash. "Boeing is going to have to settle it and just make a higher offer, because they are just not in a position to duke it out," said Agency Partners analyst Nick Cunningham. 

Wells Fargo analyst Matthew Akers said raising the wage offer to meet the union's demand of 40 per cent could end the dispute, noting that online comments suggested members were divided on the pension issue. Some machinists vowed to fight on after the vote, with many still angry about the last pension deal signed a decade ago.

Cash burn continues for Boeing<o:p></o:p>

Analysts said the vote could complicate efforts to carry out a refinancing needed to stabilize Boeing's operations after the strike hampered its recovery from a string of previous crises. Many suppliers are also facing financial difficulties.

Boeing last week filed papers giving itself a window to raise as much as $25 billion to avoid losing its investment grade rating and separately secured a $10 billion credit line. Still, although many analysts say it would prefer to wait for the end of the strike and start generating more cash through deliveries before going to the markets, the labor power struggle has placed it under mounting pressure to clear the air.

"We wouldn't rule out a capital raise before the strike ends ... depending on market conditions," JP Morgan analyst Seth Seifman said in a note after the vote.

Coming on top of back-to-back crises over safety, quality, and an industry-wide shortage of parts and labor, the vote on Boeing's first major strike in 16 years overshadowed a $6 billion loss for the third quarter also announced on October 24.

Ortberg laid out plans to restore Boeing's fortunes after it lost significant share to European rival Airbus but told staff and investors the turnaround would take some time. Market participants and investors will closely follow these developments and take informed investment calls on the airline major.

Boeing shares closed about 1.5 per cent lower in market trading on October 24 after workers voted to extend a nearly six-week-old strike, throwing fresh uncertainty over the company's efforts to stabilize finances and restore its battered image according to a detailed report by Reuters.

Boeing shares closed about 1.5 per cent lower in market trading on October 24 after workers voted to extend a nearly six-week-old strike, throwing fresh uncertainty over the company's efforts to stabilize finances and restore its battered image according to a detailed report by Reuters. The Reuters report further stated that some 64 per cent of West Coast factory workers on Wednesday rejected the company's latest contract offer, leaving assembly lines idle for nearly all the planemaker's commercial jets including the 737 MAX, the backbone of its balance sheet. Basic details about the offer The offer included a 35 per cent general wage increase over four years but no defined benefit pension plan, which was one of the striking machinists' main demands. The rejection is a blow for new CEO Kelly Ortberg, who took the top job in August on a pledge to work more closely with factory workers than his predecessors. Deadlock over the pension plan, which was withdrawn following a deal to keep jobs in Washington state a decade ago, raised immediate concerns over a longer strike as rating agencies monitor Boeing for a possible downgrade to junk status. "A longer strike delays Boeing's recovery and increases financial pressure on the company and its (credit) rating," said Ben Tsocanos, aerospace director at S&P Global Ratings. "The rejection raises the risk of a protracted strike if the obstacle is reinstatement of a pension. We believe the company is not likely to agree to a pension because of the cost." Challenges for the company mount While others said the continued stoppage leaves the plane-maker with dwindling options as it continues to bleed cash. "Boeing is going to have to settle it and just make a higher offer, because they are just not in a position to duke it out," said Agency Partners analyst Nick Cunningham. Wells Fargo analyst Matthew Akers said raising the wage offer to meet the union's demand of 40 per cent could end the dispute, noting that online comments suggested members were divided on the pension issue. Some machinists vowed to fight on after the vote, with many still angry about the last pension deal signed a decade ago. Cash burn continues for Boeing Analysts said the vote could complicate efforts to carry out a refinancing needed to stabilize Boeing's operations after the strike hampered its recovery from a string of previous crises. Many suppliers are also facing financial difficulties. Boeing last week filed papers giving itself a window to raise as much as $25 billion to avoid losing its investment grade rating and separately secured a $10 billion credit line. Still, although many analysts say it would prefer to wait for the end of the strike and start generating more cash through deliveries before going to the markets, the labor power struggle has placed it under mounting pressure to clear the air. "We wouldn't rule out a capital raise before the strike ends ... depending on market conditions," JP Morgan analyst Seth Seifman said in a note after the vote. Coming on top of back-to-back crises over safety, quality, and an industry-wide shortage of parts and labor, the vote on Boeing's first major strike in 16 years overshadowed a $6 billion loss for the third quarter also announced on October 24. Ortberg laid out plans to restore Boeing's fortunes after it lost significant share to European rival Airbus but told staff and investors the turnaround would take some time. Market participants and investors will closely follow these developments and take informed investment calls on the airline major.

Boeing stock drops as workers turn down latest proposal

Boeing machinists have overwhelmingly rejected a proposed labour contract, prolonging a strike that has already lasted more than five weeks and brought most of the company's aircraft production to a standstill in the Seattle area. The contract, which promised a 35 per cent wage increase over four years, was voted down by 64 per cent of union members, according to the International Association of Machinists and Aerospace Workers (IAM) as detailed in a report by CNBC.

This rejection represents a significant setback for Boeing, which recently reported its largest quarterly loss since 2020, totalling $6 billion, and warned that it will continue to experience cash flow issues through 2025, the CNBC report mentioned further. The ongoing strike is estimated to cost the company around $1 billion each month, highlighting the financial strain caused by the labour dispute.

Boeing’s new CEO, Kelly Ortberg, has emphasised the importance of resolving the strike as a priority for the company’s recovery, particularly in light of its recent safety and quality challenges. "My focus is getting everybody looking forward, getting them back to work, and improving that relationship," Ortberg stated during an interview on CNBC, expressing a desire to return to normal operations.

The machinists, numbering over 32,000 in the Puget Sound region, Oregon, and beyond, initially walked off the job on September 13 after rejecting a prior agreement that proposed a 25 per cent raise. Their union had initially sought a 40 per cent wage increase, reflecting the rising cost of living in the region.

The latest contract proposal included not only a 35 per cent wage increase but also enhanced 401(k) contributions, a $7,000 bonus, and other benefits. However, the absence of a pension plan, a point of contention following the loss of their previous plan in 2014, remained a sticking point.

In a bid to appease union members, Boeing committed to producing its next aircraft in the Pacific Northwest, reversing a previous decision to move 787 Dreamliner production to a non-union facility in South Carolina. Despite these concessions, Jon Holden, president of IAM District 751, noted at a press conference that the union felt the latest offer did not adequately meet their members' demands. He indicated a willingness to return to negotiations.

The strike's ramifications extend beyond Boeing, affecting its extensive supply chain, which remains vulnerable in the post-pandemic landscape. Spirit AeroSystems, a key supplier, recently announced plans to furlough approximately 700 workers, warning of potential layoffs if the strike continues.

This labor unrest adds to Boeing's series of challenges, which include increased regulatory scrutiny following a midair incident involving the 737 Max 9. As Boeing works to ramp up production amidst these difficulties, the outcome of this labor dispute remains critical to its future stability and growth.

Boeing machinists have overwhelmingly rejected a proposed labour contract, prolonging a strike that has already lasted more than five weeks and brought most of the company's aircraft production to a standstill in the Seattle area.

Boeing machinists have overwhelmingly rejected a proposed labour contract, prolonging a strike that has already lasted more than five weeks and brought most of the company's aircraft production to a standstill in the Seattle area. The contract, which promised a 35 per cent wage increase over four years, was voted down by 64 per cent of union members, according to the International Association of Machinists and Aerospace Workers (IAM) as detailed in a report by CNBC. This rejection represents a significant setback for Boeing, which recently reported its largest quarterly loss since 2020, totalling $6 billion, and warned that it will continue to experience cash flow issues through 2025, the CNBC report mentioned further. The ongoing strike is estimated to cost the company around $1 billion each month, highlighting the financial strain caused by the labour dispute. Boeing’s new CEO, Kelly Ortberg, has emphasised the importance of resolving the strike as a priority for the company’s recovery, particularly in light of its recent safety and quality challenges. "My focus is getting everybody looking forward, getting them back to work, and improving that relationship," Ortberg stated during an interview on CNBC, expressing a desire to return to normal operations. The machinists, numbering over 32,000 in the Puget Sound region, Oregon, and beyond, initially walked off the job on September 13 after rejecting a prior agreement that proposed a 25 per cent raise. Their union had initially sought a 40 per cent wage increase, reflecting the rising cost of living in the region. The latest contract proposal included not only a 35 per cent wage increase but also enhanced 401(k) contributions, a $7,000 bonus, and other benefits. However, the absence of a pension plan, a point of contention following the loss of their previous plan in 2014, remained a sticking point. In a bid to appease union members, Boeing committed to producing its next aircraft in the Pacific Northwest, reversing a previous decision to move 787 Dreamliner production to a non-union facility in South Carolina. Despite these concessions, Jon Holden, president of IAM District 751, noted at a press conference that the union felt the latest offer did not adequately meet their members' demands. He indicated a willingness to return to negotiations. The strike's ramifications extend beyond Boeing, affecting its extensive supply chain, which remains vulnerable in the post-pandemic landscape. Spirit AeroSystems, a key supplier, recently announced plans to furlough approximately 700 workers, warning of potential layoffs if the strike continues. This labor unrest adds to Boeing's series of challenges, which include increased regulatory scrutiny following a midair incident involving the 737 Max 9. As Boeing works to ramp up production amidst these difficulties, the outcome of this labor dispute remains critical to its future stability and growth.

Boeing machinists vote down contract, extending strike and production halt

After the blowout of the aeroplane plug, Boeing's communications satellite exploded into pieces as it was orbiting in space resulting in a "total loss" of the device which was used for serving customers across Africa, Europe and parts of the Asia-Pacific region.

The company, which had bought the satellite from Boeing, stated that its IS-33e satellite went entirely out of commission on Monday (Oct 21) after it first experienced an “anomaly” on Saturday (Oct 19).&nbsp;

“The anomaly previously disclosed on October 19 has resulted in the total loss of the Intelsat 33e satellite,” said the satellite-powered communications company Intelsat, in a statement.&nbsp;

Also Read:&nbsp;<a href="https://www.wionews.com/science/longest-ever-cosmic-radio-signal-lasting-nearly-an-hour-likely-coming-from-769900">Longest-ever cosmic radio signal lasting nearly an hour likely coming from...</a>

“We are coordinating with the satellite manufacturer, Boeing, and government agencies to analyse data and observations," it added.&nbsp;

<h2>Satellite breaks into 20 pieces of space junk</h2>

According to an alert, the satellite has broken into at least 20 pieces of space junk which are being tracked by the US Space Forces. The federal agency said that there are no immediate threats.&nbsp;

The company said that the satellite, which was expected to have a lifespan of 15 years was launched in August 2016 and was brought into service in January 2017, according to Space News.&nbsp;

The Boeing-built IS-33e had issues from the beginning.&nbsp;

The satellite had gone into service three months after facing an issue with its primary thruster. An issue in its second propulsion during testing had reduced 3.5 years from its initial lifespan, stated the industry publication.

Watch:&nbsp;Explained: Indian Space Agency's Spadex Mission

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/explained-indian-space-agencys-spadex-mission-768894/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

According to Space News, Intelsat lost another Boeing satellite known as IS-29e in 2019.

Experts were not able to determine the cause of its destruction nearly three years after its launch, but it was said to have occurred most likely because of either a wiring issue or a collision with a meteorite.

In the last year, Boeing has come under intense scrutiny because of countless issues with its 737 MAX jets, its failed Starliner mission and the door-plug blowout case.

(With inputs from agencies)

After the blowout of the aeroplane plug, Boeing's communications satellite exploded into pieces as it was orbiting in space resulting in a "total loss" of the device which was used for serving customers across Africa, Europe and parts of the Asia-Pacific region.

After the blowout of the aeroplane plug, Boeing's communications satellite exploded into pieces as it was orbiting in space resulting in a "total loss" of the device which was used for serving customers across Africa, Europe and parts of the Asia-Pacific region. The company, which had bought the satellite from Boeing, stated that its IS-33e satellite went entirely out of commission on Monday (Oct 21) after it first experienced an “anomaly” on Saturday (Oct 19). “The anomaly previously disclosed on October 19 has resulted in the total loss of the Intelsat 33e satellite,” said the satellite-powered communications company Intelsat, in a statement. Also Read: Longest-ever cosmic radio signal lasting nearly an hour likely coming from... “We are coordinating with the satellite manufacturer, Boeing, and government agencies to analyse data and observations," it added. Satellite breaks into 20 pieces of space junk According to an alert, the satellite has broken into at least 20 pieces of space junk which are being tracked by the US Space Forces. The federal agency said that there are no immediate threats. The company said that the satellite, which was expected to have a lifespan of 15 years was launched in August 2016 and was brought into service in January 2017, according to Space News. The Boeing-built IS-33e had issues from the beginning. The satellite had gone into service three months after facing an issue with its primary thruster. An issue in its second propulsion during testing had reduced 3.5 years from its initial lifespan, stated the industry publication. Watch: Explained: Indian Space Agency's Spadex Mission According to Space News, Intelsat lost another Boeing satellite known as IS-29e in 2019. Experts were not able to determine the cause of its destruction nearly three years after its launch, but it was said to have occurred most likely because of either a wiring issue or a collision with a meteorite. In the last year, Boeing has come under intense scrutiny because of countless issues with its 737 MAX jets, its failed Starliner mission and the door-plug blowout case. (With inputs from agencies)

Boeing creates trouble in space, as its satellite explodes into pieces. Will it be a threat?

Boeing's recent proposal to its workers has sparked a notable increase in the company's stock prices, reflecting investor optimism. However, analysts are cautioning that the move may not be as straightforward as it appears, with concerns about potential pushback from employees according to a detailed report by Reuters.

About 33,000 workers will vote on the offer on Wednesday after a more than month-long work stoppage that has halted production of models including Boeing's best-selling 737 MAX narrowbody jets.

The contract proposal announced on Saturday includes a 35 per cent pay hike over four years, a $7,000 ratification bonus, a reinstated incentive plan and enhanced contributions to workers' 401(k) retirement plans, including a one-time $5,000 contribution plus up to 12 per cent in employer contributions.

The wage increase and ratification bonus are higher than in the previous offer, which was rebuffed by workers. But the salary hikes fall short of a 40 per cent pay rise over four years and the restoration of the traditional pension lost in 2014 demanded by the International Association of Machinists and Aerospace Workers union.

JPMorgan analyst Seth Seifman estimated the wage hikes might increase Boeing's costs by more than $1 billion, while Jefferies analyst Sheila Kahyaoglu expects wage-related expenses at about $1.3 billion the Reuters report detailed further. 

Positive reaction by the stock market

The stock market reacted positively to the news, with Boeing shares rising by approximately 5 per cent following the announcement. Investors are hopeful that this new proposal could lead to improved relations between the company and its workforce, ultimately benefiting Boeing's operational efficiency and financial performance.

Despite the initial surge in share prices, analysts are expressing caution regarding the long-term implications of the proposal. Many believe that while the offer may appease some workers, it could also lead to dissatisfaction among others who feel their needs are not being adequately addressed.

The potential for unrest among employees is a significant concern, especially given the current climate of heightened expectations for fair compensation and working conditions across various industries. Still, the current offer is seen as a better offer in comparison with the last one.

Prominent ratings agencies have warned of a downgrade if the strike drags on. Still, the current offer is seen as a step in the right direction by several market participants.&nbsp;"We view the proposal as a positive step," Ben Tsocanos, aerospace director at ratings agency S&amp;P Global, told Reuters. 

The work stoppage has halted production of Boeing's cash-cow 737 MAX, and 767 and 777 widebodies. Shares of supplier Spirit AeroSystems, which said last week it was furloughing 700 workers due to the strike, rose 4.3 per cent.

In a separate labor action, 5,000 workers were set to return to work at business jet maker Textron's facilities in Wichita, Kansas, after voting to accept a five-year contract providing wage increases of 31 per cent. In a boost to Boeing, Dubai's Emirates Airlines ordered five Boeing 777F freighters on Monday and will make a decision this year on a purchase of further Boeing or Airbus models. How things evolve for Boeing and its employees is now to be seen. Market watchers will keenly follow the developments for more insights.&nbsp;

Boeing's recent proposal to its workers has sparked a notable increase in the company's stock prices, reflecting investor optimism. However, analysts are cautioning that the move may not be as straightforward as it appears, with concerns about potential pushback from employees according to a detailed report by Reuters.

Boeing's recent proposal to its workers has sparked a notable increase in the company's stock prices, reflecting investor optimism. However, analysts are cautioning that the move may not be as straightforward as it appears, with concerns about potential pushback from employees according to a detailed report by Reuters. About 33,000 workers will vote on the offer on Wednesday after a more than month-long work stoppage that has halted production of models including Boeing's best-selling 737 MAX narrowbody jets. The contract proposal announced on Saturday includes a 35 per cent pay hike over four years, a $7,000 ratification bonus, a reinstated incentive plan and enhanced contributions to workers' 401(k) retirement plans, including a one-time $5,000 contribution plus up to 12 per cent in employer contributions. The wage increase and ratification bonus are higher than in the previous offer, which was rebuffed by workers. But the salary hikes fall short of a 40 per cent pay rise over four years and the restoration of the traditional pension lost in 2014 demanded by the International Association of Machinists and Aerospace Workers union. JPMorgan analyst Seth Seifman estimated the wage hikes might increase Boeing's costs by more than $1 billion, while Jefferies analyst Sheila Kahyaoglu expects wage-related expenses at about $1.3 billion the Reuters report detailed further. Positive reaction by the stock market The stock market reacted positively to the news, with Boeing shares rising by approximately 5 per cent following the announcement. Investors are hopeful that this new proposal could lead to improved relations between the company and its workforce, ultimately benefiting Boeing's operational efficiency and financial performance. Despite the initial surge in share prices, analysts are expressing caution regarding the long-term implications of the proposal. Many believe that while the offer may appease some workers, it could also lead to dissatisfaction among others who feel their needs are not being adequately addressed. The potential for unrest among employees is a significant concern, especially given the current climate of heightened expectations for fair compensation and working conditions across various industries. Still, the current offer is seen as a better offer in comparison with the last one. Prominent ratings agencies have warned of a downgrade if the strike drags on. Still, the current offer is seen as a step in the right direction by several market participants. "We view the proposal as a positive step," Ben Tsocanos, aerospace director at ratings agency S&P Global, told Reuters. The work stoppage has halted production of Boeing's cash-cow 737 MAX, and 767 and 777 widebodies. Shares of supplier Spirit AeroSystems, which said last week it was furloughing 700 workers due to the strike, rose 4.3 per cent. In a separate labor action, 5,000 workers were set to return to work at business jet maker Textron's facilities in Wichita, Kansas, after voting to accept a five-year contract providing wage increases of 31 per cent. In a boost to Boeing, Dubai's Emirates Airlines ordered five Boeing 777F freighters on Monday and will make a decision this year on a purchase of further Boeing or Airbus models. How things evolve for Boeing and its employees is now to be seen. Market watchers will keenly follow the developments for more insights.

Boeing shares rise after labour offer but analysts wary of worker pushback

Boeing and its machinists’ union have reached a new contract proposal, the union said Saturday, outlining&nbsp; a deal that could end a more than month-long strike that has hobbled the manufacturers’ aircraft&nbsp; production as detailed in a report by CNBC.

The CNBC report further stated that the new proposal includes 35 per cent wage increases over four years, a higher signing bonus of $7,000, guaranteed minimum payouts in an annual bonus program and higher 401(k) contributions among other changes. Whereas, the ratification vote is set for Wednesday i.e., on October 23. 

The acting US Secretary of Labor Julie Su met with both parties earlier this week. “With the help of acting US &nbsp;Secretary of Labor Julie Su, we have received a negotiated proposal and resolution to end the strike, and it warrants presenting to the members and is worthy of your consideration,” the International Association of Machinists and Aerospace Workers District 751 said in a statement Saturday.

Brief history of Boeing

The Boeing Company is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, and missiles worldwide. The company also provides leasing and product support services. Boeing is among the largest global aerospace manufacturers. It is also one of the largest defense contractor in the world based on revenue. The company has been consistently ranked as one of the largest exporters in the United States by dollar value. Boeing was founded by William E. Boeing in Seattle, Washington, on July 15, 1916. The present corporation is the result of the merger of Boeing with McDonnell Douglas on August 1, 1997.

Role of the US Government in resolving the dispute<o:p></o:p>

“President Biden believes the collective bargaining process is the best way to achieve good outcomes for workers, and the ultimate decision on a contract will be for the union workers to decide,” a White House spokesperson said in a statement.

The strike began on September 13 after more than 30,000 machinists overwhelmingly rejected a tentative agreement that included 25 per cent wage increases over four years. Boeing later made improved offer but the union blasted it saying it was not negotiated.

“We look forward to our employees voting on the negotiated proposal,” Boeing said in a statement. Boeing is working to stop bleeding cash as it grapples with a safety crisis stemming from a near-catastrophic door plug blowout on one of its 737 Maxes at start the year and challenges in its other programs.

The company earlier this month stated that it will report a deep loss and take charges of about $5 billion in its commercial and defense units. A ratified contract on Wednesday, when Boeing also reports full results, would be a victory for new CEO Kelly Ortberg, who took the company’s top job in August, tasked with reshaping the company.<o:p></o:p>

Further on October 11, he announced job cuts of 10 per cent of Boeing’s workforce and that the company will stop making 767s when orders are fulfilled in 2027. It is now to be seen how things evolve going forward, with market participants and investors looking forward to a final resolution to the dispute.

<o:p>&nbsp;</o:p>

Boeing and its machinists’ union have reached a new contract proposal, the union said Saturday, outlining a deal that could end a more than month-long strike that has hobbled the manufacturers’ aircraft production as detailed in a report by CNBC.

Boeing and its machinists’ union have reached a new contract proposal, the union said Saturday, outlining a deal that could end a more than month-long strike that has hobbled the manufacturers’ aircraft production as detailed in a report by CNBC. The CNBC report further stated that the new proposal includes 35 per cent wage increases over four years, a higher signing bonus of $7,000, guaranteed minimum payouts in an annual bonus program and higher 401(k) contributions among other changes. Whereas, the ratification vote is set for Wednesday i.e., on October 23. The acting US Secretary of Labor Julie Su met with both parties earlier this week. “With the help of acting US Secretary of Labor Julie Su, we have received a negotiated proposal and resolution to end the strike, and it warrants presenting to the members and is worthy of your consideration,” the International Association of Machinists and Aerospace Workers District 751 said in a statement Saturday. Brief history of Boeing The Boeing Company is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, and missiles worldwide. The company also provides leasing and product support services. Boeing is among the largest global aerospace manufacturers. It is also one of the largest defense contractor in the world based on revenue. The company has been consistently ranked as one of the largest exporters in the United States by dollar value. Boeing was founded by William E. Boeing in Seattle, Washington, on July 15, 1916. The present corporation is the result of the merger of Boeing with McDonnell Douglas on August 1, 1997. Role of the US Government in resolving the dispute “President Biden believes the collective bargaining process is the best way to achieve good outcomes for workers, and the ultimate decision on a contract will be for the union workers to decide,” a White House spokesperson said in a statement. The strike began on September 13 after more than 30,000 machinists overwhelmingly rejected a tentative agreement that included 25 per cent wage increases over four years. Boeing later made improved offer but the union blasted it saying it was not negotiated. “We look forward to our employees voting on the negotiated proposal,” Boeing said in a statement. Boeing is working to stop bleeding cash as it grapples with a safety crisis stemming from a near-catastrophic door plug blowout on one of its 737 Maxes at start the year and challenges in its other programs. The company earlier this month stated that it will report a deep loss and take charges of about $5 billion in its commercial and defense units. A ratified contract on Wednesday, when Boeing also reports full results, would be a victory for new CEO Kelly Ortberg, who took the company’s top job in August, tasked with reshaping the company. Further on October 11, he announced job cuts of 10 per cent of Boeing’s workforce and that the company will stop making 767s when orders are fulfilled in 2027. It is now to be seen how things evolve going forward, with market participants and investors looking forward to a final resolution to the dispute.

Boeing workers to vote on new proposal to potentially end strike

A federal judge has ordered Boeing and the US Justice Department to explain how diversity and inclusion policies play a role in choosing an independent monitor before he decides whether to accept the planemaker's plea deal.

US District Judge Reed O'Connor is considering whether to approve Boeing's agreement to plead guilty to conspiring to defraud regulators. A resolution would entail three years under the supervision of an independent monitor.

The order represents the latest in a series of challenges Boeing must overcome to avoid the public spectacle of a trial and plead guilty to charges of deceiving the Federal Aviation Administration and violating a 2021 deferred prosecution agreement.

O'Connor on Tuesday directed the DOJ and Boeing to file their responses by Oct. 25 on the DOJ policy of selecting a monitor in keeping with the commitment of the US government to diversity and inclusion.

A DOJ spokesperson said the government "will comply with the judge’s order and respond before the court’s deadline." Boeing did not immediately comment.

He also pointed out that this was not a contentious term in the plea agreement when instructing DOJ and Boeing to answer a set of questions pertaining to the diversity and inclusion policy, as well as the impact of this policy on the selection of the independent monitor.

"Critically, Boeing did not voice any objection to this provision," the judge said in his order.

O'Connor also asked the planemaker to detail how its current diversity, equity, and inclusion policies "are used in its current compliance and ethics efforts."

Under the plea deal, the planemaker will pay up to a $487.2 million penalty and invest at least $455 million in improving safety and compliance practices over three years of court-supervised probation.

O'Connor Friday pressed the Justice Department to justify the terms of Boeing's agreement to plead guilty to fraud in the wake of the two fatal 737 MAX crashes in Indonesia in 2018 and Ethiopia in 2019 that killed 346 people.

Lawyers for Boeing and the DOJ argued the judge should approve the plea deal, whereas lawyers for relatives of the crash victims urged him to reject it. Boeing agreed in July to plead guilty to conspiring to deceive regulators.

This article includes reporting from Reuters.

A federal judge has ordered Boeing and the US Justice Department to explain how diversity and inclusion policies play a role in choosing an independent monitor before he decides whether to accept the planemaker's plea deal.

A federal judge has ordered Boeing and the US Justice Department to explain how diversity and inclusion policies play a role in choosing an independent monitor before he decides whether to accept the planemaker's plea deal. US District Judge Reed O'Connor is considering whether to approve Boeing's agreement to plead guilty to conspiring to defraud regulators. A resolution would entail three years under the supervision of an independent monitor. The order represents the latest in a series of challenges Boeing must overcome to avoid the public spectacle of a trial and plead guilty to charges of deceiving the Federal Aviation Administration and violating a 2021 deferred prosecution agreement. O'Connor on Tuesday directed the DOJ and Boeing to file their responses by Oct. 25 on the DOJ policy of selecting a monitor in keeping with the commitment of the US government to diversity and inclusion. A DOJ spokesperson said the government "will comply with the judge’s order and respond before the court’s deadline." Boeing did not immediately comment. He also pointed out that this was not a contentious term in the plea agreement when instructing DOJ and Boeing to answer a set of questions pertaining to the diversity and inclusion policy, as well as the impact of this policy on the selection of the independent monitor. "Critically, Boeing did not voice any objection to this provision," the judge said in his order. O'Connor also asked the planemaker to detail how its current diversity, equity, and inclusion policies "are used in its current compliance and ethics efforts." Under the plea deal, the planemaker will pay up to a $487.2 million penalty and invest at least $455 million in improving safety and compliance practices over three years of court-supervised probation. O'Connor Friday pressed the Justice Department to justify the terms of Boeing's agreement to plead guilty to fraud in the wake of the two fatal 737 MAX crashes in Indonesia in 2018 and Ethiopia in 2019 that killed 346 people. Lawyers for Boeing and the DOJ argued the judge should approve the plea deal, whereas lawyers for relatives of the crash victims urged him to reject it. Boeing agreed in July to plead guilty to conspiring to deceive regulators. This article includes reporting from Reuters.

US judge orders Boeing and DOJ to clarify diversity policy before ruling on plea

Boeing has announced plans to raise up to $25 billion through stock and debt offerings. This alongside a $10 billion credit agreement with major lenders like Bank of America, Citibank, Goldman Sachs, and JP Morgan. Watch in for more details!

Boeing Seeks Capital To Maintain Credit Rating Above Junk

Boeing is set to raise up to $25 billion to strengthen its balance sheet. In a recent filing, the company announced a $10 billion credit agreement with banks amid warnings from credit rating agencies about a potential loss of its investment-grade status as detailed in a report.&nbsp;

Details of the plan to raise capital

On October 15, Boeing disclosed plans to raise this capital through shares or debt over the next three years, aiming to improve liquidity as it grapples with a prolonged machinist strike and ongoing issues across its aircraft programs, as reported by CNBC. Boeing stated that this universal shelf registration would allow the company to explore various capital options to support its balance sheet during this period.

Since the beginning of the year, Boeing's shares have plummeted nearly 42 per cent. Analysts from Bank of America project that the company will raise between $10 billion and $15 billion in equity. Analyst Ron Epstein noted that Boeing is likely to prioritize equity offerings initially, which would help stabilize its balance sheet while keeping the option open for future debt issuance with a lower risk of credit downgrades.

Fitch Ratings commented that Boeing's announcement would enhance financial flexibility and alleviate immediate liquidity concerns. The company is under pressure from credit rating agencies, including S&amp;P Global Ratings, which estimated last week that the machinist strike is costing Boeing over $1 billion each month.

Negotiations between the two sides remain stalled. On Tuesday, four US lawmakers from Washington state urged Boeing’s new CEO Kelly Ortberg and union leaders Jon Holden and Brandon Bryant to reach a resolution. They expressed hope for a fair and sustainable agreement that acknowledges the machinist workforce's significance to Boeing's future and the broader aerospace economy in the Pacific Northwest.

Additionally, Boeing confirmed its $10 billion credit agreement with a consortium of banks, stating that it provides short-term liquidity as the company navigates challenging conditions. The firm has not yet utilised this facility or its existing credit revolver.

In a cost-cutting measure, Boeing CEO Ortberg announced plans to lay off approximately 17,000 employees, or 10 per cent of Boeing's global workforce. He emphasised the need for a realistic approach to achieving key recovery milestones and focusing resources on core operations.

This announcement coincided with preliminary financial results revealing significant losses and $5 billion in charges within Boeing’s defense and commercial airplane divisions. Ortberg is scheduled to hold his first quarterly investor call since taking over as CEO in August on October 23.

Boeing is set to raise up to $25 billion to strengthen its balance sheet. In a recent filing, the company announced a $10 billion credit agreement with banks amid warnings from credit rating agencies about a potential loss of its investment-grade status as detailed in a report.

Boeing is set to raise up to $25 billion to strengthen its balance sheet. In a recent filing, the company announced a $10 billion credit agreement with banks amid warnings from credit rating agencies about a potential loss of its investment-grade status as detailed in a report. Details of the plan to raise capital On October 15, Boeing disclosed plans to raise this capital through shares or debt over the next three years, aiming to improve liquidity as it grapples with a prolonged machinist strike and ongoing issues across its aircraft programs, as reported by CNBC. Boeing stated that this universal shelf registration would allow the company to explore various capital options to support its balance sheet during this period. Since the beginning of the year, Boeing's shares have plummeted nearly 42 per cent. Analysts from Bank of America project that the company will raise between $10 billion and $15 billion in equity. Analyst Ron Epstein noted that Boeing is likely to prioritize equity offerings initially, which would help stabilize its balance sheet while keeping the option open for future debt issuance with a lower risk of credit downgrades. Fitch Ratings commented that Boeing's announcement would enhance financial flexibility and alleviate immediate liquidity concerns. The company is under pressure from credit rating agencies, including S&P Global Ratings, which estimated last week that the machinist strike is costing Boeing over $1 billion each month. Negotiations between the two sides remain stalled. On Tuesday, four US lawmakers from Washington state urged Boeing’s new CEO Kelly Ortberg and union leaders Jon Holden and Brandon Bryant to reach a resolution. They expressed hope for a fair and sustainable agreement that acknowledges the machinist workforce's significance to Boeing's future and the broader aerospace economy in the Pacific Northwest. Additionally, Boeing confirmed its $10 billion credit agreement with a consortium of banks, stating that it provides short-term liquidity as the company navigates challenging conditions. The firm has not yet utilised this facility or its existing credit revolver. In a cost-cutting measure, Boeing CEO Ortberg announced plans to lay off approximately 17,000 employees, or 10 per cent of Boeing's global workforce. He emphasised the need for a realistic approach to achieving key recovery milestones and focusing resources on core operations. This announcement coincided with preliminary financial results revealing significant losses and $5 billion in charges within Boeing’s defense and commercial airplane divisions. Ortberg is scheduled to hold his first quarterly investor call since taking over as CEO in August on October 23.

Boeing plans to raise up to $25 billion amid financial challenges and machinist strike

Boeing announced that it plans to cut 10 percent of its workforce as it projected a large third-quarter loss amid a machinist strike in the Seattle region.

The aviation giant must "reset our workforce levels to align with our financial reality," Chief Executive Kelly Ortberg said on Friday, adding that the cuts of 17,000 positions globally "will include executives, managers and employees."

The company announced a series of belt-tightening measures and production delays as the nearly monthlong strike of 33,000 workers has added to the company's litany of problems.

Boeing staff with the International Association of Machinists (IAM) and Aerospace Workers walked off the job on September 13 after overwhelmingly rejecting a contract offer.

IAM officials did not immediately respond to a request for comment from AFP.

Boeing, which&nbsp;has also faced significant scrutiny over commercial aviation safety lapses and stumbles in its Starliner space program, said the IAM strike contributed to $3 billion in pre-tax charges to its commercial aviation results in the third quarter, part of an anticipated loss of $9.97 per share.

"While our business is facing near-term challenges, we are making important strategic decisions for our future and have a clear view on the work we must do to restore our company," Ortberg said in a press release.

"These decisive actions, along with key structural changes&nbsp;to our business,&nbsp;are necessary to remain competitive over the long term."

Details of the cuts would come next week, he said.

As a result of the strike, Boeing said it is pushing back first delivery of the 777X to 2026 from 2025. The much-delayed jet was originally supposed to enter service in January 2020.

The company plans to cease production of the 767 Freighter in 2027 once it completes production on current orders.&nbsp;

Ortberg also vowed to take "additional oversight" of Boeing's troubled defense and space businesses, which will experience "substantial new losses" in the third quarter, he said in the message to employees.

<h2>Criminal settlement questioned</h2>

Ortberg joined Boeing in August after a leadership shakeup initiated in the wake of a January incident on Alaska Airlines in which a window blew out mid-flight, necessitating an emergency landing on a 737 MAX, the aircraft involved in two fatal crashes in 2018 and 2019.

That led to the Federal Aviation Administration tightening oversight of Boeing's production processes, capping the company's output. Production on the MAX is now halted due to the IAM strike.

On Friday, a judge in Texas heard arguments on whether to approve a US Department of Justice criminal settlement on the MAX. Family members of MAX victims from the two crashes argued in court against the settlement, asserting that Boeing and former executives should be criminally prosecuted in a public trial.

The IAM strike, meanwhile, has halted activity at two Seattle-area assembly plants.&nbsp;

The striking workers are seeking hefty wage hikes and a reinstatement of their pension, complaining of more than a decade of near-flat wages amid inflation.

Ratings agency S&amp;P estimated this week that the strike was costing Boeing $1 billion per month.

On Tuesday, following two days of unsuccessful negotiations, Boeing suspended the talks, accusing the union of making unreasonable demands and withdrew its offer. Boeing's most recent offer included a 30 percent wage hike.&nbsp;

IAM's negotiating committee said late Friday that Boeing's withdrawal of its offer at the last talks "will only make it harder to reach an agreement."

"The fact they are complaining about our proposals shows their desperation and only proves to our members that we are fighting for them," IAM said in a statement on X, without mentioning Boeing's plan to slash 17,000 jobs.

Shares of Boeing fell about 1 percent in after-hours trading.

Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

Boeing announced that it plans to cut 10 percent of its workforce as it projected a large third-quarter loss amid a machinist strike in the Seattle region. The aviation giant must "reset our workforce levels to align with our financial reality," Chief Executive Kelly Ortberg said on Friday, adding that the cuts of 17,000 positions globally "will include executives, managers and employees.

Boeing announced that it plans to cut 10 percent of its workforce as it projected a large third-quarter loss amid a machinist strike in the Seattle region. The aviation giant must "reset our workforce levels to align with our financial reality," Chief Executive Kelly Ortberg said on Friday, adding that the cuts of 17,000 positions globally "will include executives, managers and employees." The company announced a series of belt-tightening measures and production delays as the nearly monthlong strike of 33,000 workers has added to the company's litany of problems. Boeing staff with the International Association of Machinists (IAM) and Aerospace Workers walked off the job on September 13 after overwhelmingly rejecting a contract offer. IAM officials did not immediately respond to a request for comment from AFP. Boeing, which has also faced significant scrutiny over commercial aviation safety lapses and stumbles in its Starliner space program, said the IAM strike contributed to $3 billion in pre-tax charges to its commercial aviation results in the third quarter, part of an anticipated loss of $9.97 per share. "While our business is facing near-term challenges, we are making important strategic decisions for our future and have a clear view on the work we must do to restore our company," Ortberg said in a press release. "These decisive actions, along with key structural changes to our business, are necessary to remain competitive over the long term." Details of the cuts would come next week, he said. As a result of the strike, Boeing said it is pushing back first delivery of the 777X to 2026 from 2025. The much-delayed jet was originally supposed to enter service in January 2020. The company plans to cease production of the 767 Freighter in 2027 once it completes production on current orders. Ortberg also vowed to take "additional oversight" of Boeing's troubled defense and space businesses, which will experience "substantial new losses" in the third quarter, he said in the message to employees. Criminal settlement questioned Ortberg joined Boeing in August after a leadership shakeup initiated in the wake of a January incident on Alaska Airlines in which a window blew out mid-flight, necessitating an emergency landing on a 737 MAX, the aircraft involved in two fatal crashes in 2018 and 2019. That led to the Federal Aviation Administration tightening oversight of Boeing's production processes, capping the company's output. Production on the MAX is now halted due to the IAM strike. On Friday, a judge in Texas heard arguments on whether to approve a US Department of Justice criminal settlement on the MAX. Family members of MAX victims from the two crashes argued in court against the settlement, asserting that Boeing and former executives should be criminally prosecuted in a public trial. The IAM strike, meanwhile, has halted activity at two Seattle-area assembly plants. The striking workers are seeking hefty wage hikes and a reinstatement of their pension, complaining of more than a decade of near-flat wages amid inflation. Ratings agency S&P estimated this week that the strike was costing Boeing $1 billion per month. On Tuesday, following two days of unsuccessful negotiations, Boeing suspended the talks, accusing the union of making unreasonable demands and withdrew its offer. Boeing's most recent offer included a 30 percent wage hike. IAM's negotiating committee said late Friday that Boeing's withdrawal of its offer at the last talks "will only make it harder to reach an agreement." "The fact they are complaining about our proposals shows their desperation and only proves to our members that we are fighting for them," IAM said in a statement on X, without mentioning Boeing's plan to slash 17,000 jobs. Shares of Boeing fell about 1 percent in after-hours trading. Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

Boeing plans to cut 10% workforce as it projects large Q3 loss

Airline major Boeing said on October 8, that it had withdrawn its pay offer to around 33,000 US factory workers and no further negotiations were planned with their union representatives as a financially damaging strike nears its fourth week according to a detailed in a report by Reuters.<o:p></o:p>

The report further stated that Boeing and the union held their latest round of negotiations with federal mediators on Monday and Tuesday, but talks collapsed and the sides were left locked in a position of stalemate showing no signs of being resolved anytime soon, a person briefed on the talks stated.

"Unfortunately, the union did not seriously consider our proposals," Boeing Commercial Airplanes head Stephanie Pope said in a note to the employees, calling the union's demands "non-negotiable".<o:p></o:p>

"Further negotiations do not make sense at this point and our offer has been withdrawn." She noted Boeing had been taking steps to preserve cash.<o:p></o:p>

On Tuesday in a separate report Reuters stated that the planemaker is examining options to raise billions of dollars through a sale of stock and equity-like securities while the factories producing its best-selling 737 MAX and its 767 and 777 planes are shut.

Brief history of Boeing

The Boeing Company (or simply Boeing) is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, and missiles worldwide. The company also provides leasing and product support services.

Boeing is among the largest global aerospace manufacturers; it is the fourth-largest defense contractor in the world based on revenue and is the largest exporter in the United States by dollar value. Boeing was founded by William Boeing in Seattle, Washington, on July 15, 1916. The present corporation is the result of the merger of Boeing with McDonnell Douglas on August 1, 1997.

Current challenges for the company

The company, which is on the brink of losing its prized investment grade credit rating, has also introduced temporary furloughs for thousands of salaried employees.<o:p></o:p>

The striking union of its West Coast factory workers is seeking a 40 per cent pay rise over four years and the restoration of a defined-benefit pension that was taken away in the contract a decade ago. More than 90 per cent of workers voted down an offer of a 25 per cent pay rise over four years before going on strike.

Boeing made an improved offer last month that it described as its "best and final", which would give workers a 30 per cent raise and restore a performance bonus, but the union said a survey of its members found that was not enough.<o:p></o:p>

Pope, referring to the two days of negotiations this week, said: "Our team bargained in good faith and made new and improved proposals to try to reach a compromise, including increases in take-home pay and retirement."

In contrast, the International Association of Machinists and Aerospace Workers union said in a statement that Boeing was "hell-bent on standing on the non-negotiated offer" proposed last month.<o:p></o:p>

"They refused to propose any wage increases, vacation/sick leave accrual, progression, ratification bonus, or the 401k Match/SCRC Contribution. They also would not reinstate the defined benefit pension," it said.

Airline major Boeing said on October 8, that it had withdrawn its pay offer to around 33,000 US factory workers and no further negotiations were planned with their union representatives as a financially damaging strike nears its fourth week according to a detailed in a report by Reuters.

Airline major Boeing said on October 8, that it had withdrawn its pay offer to around 33,000 US factory workers and no further negotiations were planned with their union representatives as a financially damaging strike nears its fourth week according to a detailed in a report by Reuters. The report further stated that Boeing and the union held their latest round of negotiations with federal mediators on Monday and Tuesday, but talks collapsed and the sides were left locked in a position of stalemate showing no signs of being resolved anytime soon, a person briefed on the talks stated. "Unfortunately, the union did not seriously consider our proposals," Boeing Commercial Airplanes head Stephanie Pope said in a note to the employees, calling the union's demands "non-negotiable". "Further negotiations do not make sense at this point and our offer has been withdrawn." She noted Boeing had been taking steps to preserve cash. On Tuesday in a separate report Reuters stated that the planemaker is examining options to raise billions of dollars through a sale of stock and equity-like securities while the factories producing its best-selling 737 MAX and its 767 and 777 planes are shut. Brief history of Boeing The Boeing Company (or simply Boeing) is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, and missiles worldwide. The company also provides leasing and product support services. Boeing is among the largest global aerospace manufacturers; it is the fourth-largest defense contractor in the world based on revenue and is the largest exporter in the United States by dollar value. Boeing was founded by William Boeing in Seattle, Washington, on July 15, 1916. The present corporation is the result of the merger of Boeing with McDonnell Douglas on August 1, 1997. Current challenges for the company The company, which is on the brink of losing its prized investment grade credit rating, has also introduced temporary furloughs for thousands of salaried employees. The striking union of its West Coast factory workers is seeking a 40 per cent pay rise over four years and the restoration of a defined-benefit pension that was taken away in the contract a decade ago. More than 90 per cent of workers voted down an offer of a 25 per cent pay rise over four years before going on strike. Boeing made an improved offer last month that it described as its "best and final", which would give workers a 30 per cent raise and restore a performance bonus, but the union said a survey of its members found that was not enough. Pope, referring to the two days of negotiations this week, said: "Our team bargained in good faith and made new and improved proposals to try to reach a compromise, including increases in take-home pay and retirement." In contrast, the International Association of Machinists and Aerospace Workers union said in a statement that Boeing was "hell-bent on standing on the non-negotiated offer" proposed last month. "They refused to propose any wage increases, vacation/sick leave accrual, progression, ratification bonus, or the 401k Match/SCRC Contribution. They also would not reinstate the defined benefit pension," it said.

Boeing halts talks, withdraws pay offer to striking union

US plane makers Boeing and Airbus are facing fresh challenges as dockworkers on the east and gulf coasts go on strike. Over 45,000 workers from the international longshoremen's association have shut down key ports, disrupting critical supply chains. While Boeing is already grappling with a labour dispute at its seattle-area facilities, this new strike could further delay the delivery of parts needed for aircraft production.

US Port Strikes May Hamper Boeing & Airbus Assembly Lines

The largest union for Boeing employees on Tuesday called on newly appointed CEO Kelly Ortberg to make more direct contact with union officials to try to end a strike by some 33,000 US West Coast workers after the aerospace company cancelled their healthcare benefits.

In August, the former Rockwell Collins executive took over Boeing, which has been hit by several crises this year, including a walkout that has hobbled the production of its best-selling 737 MAX jets.

"It’s time for the new CEO to truly engage at the proposal-based level and to take the reins from his subordinates who are fumbling critical decisions like this one," said Brian Bryant, president of the International Association of Machinists (IAM) and Aerospace Workers, which represents the striking workers.

"There is no reason the health benefits question could not have been punted on to allow more time for negotiations at the table," Bryant added in a statement.

The deadline for striking workers to tap into their Boeing health insurance plans was Sept. 30, which had been known for some time. The union advised its members Monday to look elsewhere for coverage.

Talks between Boeing and IAM's District 751, which is negotiating the contract, fell apart last week, with no sign of how soon they will resume.

"We remain committed to resetting our relationship with our represented employees and negotiating in good faith, and want to reach an agreement as soon as possible," Boeing said in a statement.

Boeing workers in Seattle and Portland, Oregon, walked out for the first time since 2008 on Sept. 13, disrupting production of three of the company's most important commercial aeroplane models and adding financial strain to the planemaker.

The union is seeking a 40 per cent pay increase as well as the revival of a defined benefit pension that was taken away in the contract a decade ago.

Boeing made its best and final offer last week that would provide employees with a 30 per cent pay increase over four years and restore the performance bonus. However, a member survey by the union said this was not enough.

The largest union for Boeing employees on Tuesday called on newly appointed CEO Kelly Ortberg to make more direct contact with union officials to try to end a strike by some 33,000 US West Coast workers after the aerospace company cancelled their healthcare benefits.

The largest union for Boeing employees on Tuesday called on newly appointed CEO Kelly Ortberg to make more direct contact with union officials to try to end a strike by some 33,000 US West Coast workers after the aerospace company cancelled their healthcare benefits. In August, the former Rockwell Collins executive took over Boeing, which has been hit by several crises this year, including a walkout that has hobbled the production of its best-selling 737 MAX jets. "It’s time for the new CEO to truly engage at the proposal-based level and to take the reins from his subordinates who are fumbling critical decisions like this one," said Brian Bryant, president of the International Association of Machinists (IAM) and Aerospace Workers, which represents the striking workers. "There is no reason the health benefits question could not have been punted on to allow more time for negotiations at the table," Bryant added in a statement. The deadline for striking workers to tap into their Boeing health insurance plans was Sept. 30, which had been known for some time. The union advised its members Monday to look elsewhere for coverage. Talks between Boeing and IAM's District 751, which is negotiating the contract, fell apart last week, with no sign of how soon they will resume. "We remain committed to resetting our relationship with our represented employees and negotiating in good faith, and want to reach an agreement as soon as possible," Boeing said in a statement. Boeing workers in Seattle and Portland, Oregon, walked out for the first time since 2008 on Sept. 13, disrupting production of three of the company's most important commercial aeroplane models and adding financial strain to the planemaker. The union is seeking a 40 per cent pay increase as well as the revival of a defined benefit pension that was taken away in the contract a decade ago. Boeing made its best and final offer last week that would provide employees with a 30 per cent pay increase over four years and restore the performance bonus. However, a member survey by the union said this was not enough.

Striking Boeing workers urge CEO to "truly engage" after loss of health coverage

More than 40 foreign operators of Boeing 737 airplanes may be utilising aircraft with rudder components that could pose safety issues. This is according to a recent report released by the U.S. National Transportation Safety Board.

The NTSB on Thursday published urgent safety recommendations regarding the possibility of a jammed rudder control system on certain 737 aircrafts after an incident in February.

Additionally, the NTSB announced that it had discovered that two foreign operators experienced comparable problems with rollout guidance actuators in 2019.

"We are concerned of the possibility that other airlines are unaware of the presence of these actuators on their 737 airplanes," NTSB Chair Jennifer Homendy said.

The issue adds to the long list of setbacks for Boeing. The planemaker has faced a series of safety questions after a mid-air emergency in January involving a new Alaska Airlines MAX 9 missing four key bolts.

Boeing shares fell 2.8 per cent on Monday and have plunged more than 35 per cent so far in 2024. Production woes have also been exacerbated by the ongoing workers' strike. The strike has halted production for its 737 Max planes and has amplified issues for Boeing and its suppliers.

More than 40 foreign operators of Boeing 737 airplanes may be utilising aircraft with rudder components that could pose safety issues. This is according to a recent report released by the U.

More than 40 foreign operators of Boeing 737 airplanes may be utilising aircraft with rudder components that could pose safety issues. This is according to a recent report released by the U.S. National Transportation Safety Board. The NTSB on Thursday published urgent safety recommendations regarding the possibility of a jammed rudder control system on certain 737 aircrafts after an incident in February. Additionally, the NTSB announced that it had discovered that two foreign operators experienced comparable problems with rollout guidance actuators in 2019. "We are concerned of the possibility that other airlines are unaware of the presence of these actuators on their 737 airplanes," NTSB Chair Jennifer Homendy said. The issue adds to the long list of setbacks for Boeing. The planemaker has faced a series of safety questions after a mid-air emergency in January involving a new Alaska Airlines MAX 9 missing four key bolts. Boeing shares fell 2.8 per cent on Monday and have plunged more than 35 per cent so far in 2024. Production woes have also been exacerbated by the ongoing workers' strike. The strike has halted production for its 737 Max planes and has amplified issues for Boeing and its suppliers.

US raises alarms on foreign operators using Boeing 737s with suspect rudder control parts

The two-week-old strike at Boeing’s west coast factories has forced aerospace supplier pathfinder manufacturing to furlough 14 of its 54 employees. The strike, involving over 30,000 workers, has halted production of Boeing’s key 737 max, 767, and 777 models. Watch to know more.

Boeing Strike Costs U.S. $1 Billion Of GDP In Just Two Weeks

Boeing Strike Forces Layoffs At Supplier Pathfinder

The Union representing Boeing factory workers currently on strike in the Pacific Northwest said contract negotiations "broke off" with the company following their latest bargaining session.

The regional district of the International Association of Machinists and Aerospace Workers said late Friday that Boeing refused to engage meaningfully on critical issues important to members — higher wages — and wasn't willing to give ground on demands to reinstate a defined-benefit pension that was eliminated a decade ago, the association said in a social media update posted on platforms X and Facebook.

IAM District 751 said no additional dates were scheduled after Friday's session between the federal government and the parties. The Union added that it remained “open to talks with the company, either direct or mediated.”

In a statement to the Associated Press on Saturday, Boeing said it was “prepared to meet at any time,” committed to negotiating in good faith, and wanted to reach an agreement as soon as possible.

On Monday, the aerospace giant presented what it described as its "best and final" offer. The proposal included wage increases of 30 per cent over four years — up from 25 per cent in a deal that union members overwhelmingly rejected when they voted to strike on Sept. 12, but still far short of the Union's initial demand of 40 per cent over three years.

Boeing also infuriated the union officials by providing the new offer to the striking employees through the media and asking them to ratify it by Friday night. The pressure had its effect, and Boeing changed its stance to accept more time to get the decision of the union members for its offer. Nevertheless, many employees were not convinced that this was a good offer after all.

The walkout, involving nearly 33,000 machinists, now enters its third week, and contract talks were stalled earlier in the strike as well, which shut down all production of Boeing's best-selling aeroplanes. The strike won't directly impact airline flights but has ramped up pressure on a company already under numerous financial, legal, and technical strains this year.

The Union representing Boeing factory workers currently on strike in the Pacific Northwest said contract negotiations "broke off" with the company following their latest bargaining session.

The Union representing Boeing factory workers currently on strike in the Pacific Northwest said contract negotiations "broke off" with the company following their latest bargaining session. The regional district of the International Association of Machinists and Aerospace Workers said late Friday that Boeing refused to engage meaningfully on critical issues important to members — higher wages — and wasn't willing to give ground on demands to reinstate a defined-benefit pension that was eliminated a decade ago, the association said in a social media update posted on platforms X and Facebook. IAM District 751 said no additional dates were scheduled after Friday's session between the federal government and the parties. The Union added that it remained “open to talks with the company, either direct or mediated.” In a statement to the Associated Press on Saturday, Boeing said it was “prepared to meet at any time,” committed to negotiating in good faith, and wanted to reach an agreement as soon as possible. On Monday, the aerospace giant presented what it described as its "best and final" offer. The proposal included wage increases of 30 per cent over four years — up from 25 per cent in a deal that union members overwhelmingly rejected when they voted to strike on Sept. 12, but still far short of the Union's initial demand of 40 per cent over three years. Boeing also infuriated the union officials by providing the new offer to the striking employees through the media and asking them to ratify it by Friday night. The pressure had its effect, and Boeing changed its stance to accept more time to get the decision of the union members for its offer. Nevertheless, many employees were not convinced that this was a good offer after all. The walkout, involving nearly 33,000 machinists, now enters its third week, and contract talks were stalled earlier in the strike as well, which shut down all production of Boeing's best-selling aeroplanes. The strike won't directly impact airline flights but has ramped up pressure on a company already under numerous financial, legal, and technical strains this year.

The 'Boeing Curse:' Negotiations with workers end without progress, says Union

Negotiations between Boeing and the international association of machinists and aerospace workers have stalled, leaving over 32,000 workers on strike since September 13. The union's demands include a significant 40% pay raise and the restoration of a defined-benefit pension that was eliminated a decade ago.

Boeing Strike Costs U.S. $1 Billion Of GDP In Just Two Weeks | World Business Watch

A federal judge set a hearing for next month to decide whether to accept the guilty plea by Boeing to conspiracy related to the 737 Max jetliner, two of which crashed with 346 people killed.

Family members of several of those killed in the crashes have objected to the plea deal. They want to put Boeing on trial, where it could face stiffer sanctions.

US District Court Judge Reed O'Connor set a hearing for Oct. 11 in Fort Worth, Texas.

Boeing is accused of deceiving the regulators who cleared minimal, computer-based training for Boeing 737 pilots before they were allowed to fly the Max. Boeing wanted to prevent regulators from requiring flight simulator training, which would cost airline companies more money.

The Justice Department argued in court filings that conspiracy to defraud the government is the most serious charge it can prove. Prosecutors said that they did not possess proof that Boeing's actions directly led to the crashes in 2018 in Indonesia and 2019 in Ethiopia.

Relatives and lawyers of the victims have called the agreement a sweetheart deal that has overlooked the loss of many lives. Some of the lawyers claim that the Justice Department had leniently dealt with Boeing in the first place because it is a huge government contractor.

The settlement includes Boeing paying at least $243.6 million as a fine, investing $455 million in compliance and safety initiatives, and serving three years on probation.

A federal judge set a hearing for next month to decide whether to accept the guilty plea by Boeing to conspiracy related to the 737 Max jetliner, two of which crashed with 346 people killed.

A federal judge set a hearing for next month to decide whether to accept the guilty plea by Boeing to conspiracy related to the 737 Max jetliner, two of which crashed with 346 people killed. Family members of several of those killed in the crashes have objected to the plea deal. They want to put Boeing on trial, where it could face stiffer sanctions. US District Court Judge Reed O'Connor set a hearing for Oct. 11 in Fort Worth, Texas. Boeing is accused of deceiving the regulators who cleared minimal, computer-based training for Boeing 737 pilots before they were allowed to fly the Max. Boeing wanted to prevent regulators from requiring flight simulator training, which would cost airline companies more money. The Justice Department argued in court filings that conspiracy to defraud the government is the most serious charge it can prove. Prosecutors said that they did not possess proof that Boeing's actions directly led to the crashes in 2018 in Indonesia and 2019 in Ethiopia. Relatives and lawyers of the victims have called the agreement a sweetheart deal that has overlooked the loss of many lives. Some of the lawyers claim that the Justice Department had leniently dealt with Boeing in the first place because it is a huge government contractor. The settlement includes Boeing paying at least $243.6 million as a fine, investing $455 million in compliance and safety initiatives, and serving three years on probation.

Federal judge in Texas to review Boeing's plea agreement in 737 Max case

Republican presidential candidate Donald Trump will be meeting Ukrainian President Volodymyr Zelensky later on Friday (Sept 27). The meeting will take place at the Trump Tower in New York. The meeting comes just hours after US President Joe Biden&nbsp;announced more than $8 billion in new military aid for Ukraine.

The conflict between Israel and Iran-aligned Lebanese militant group Hezbollah is escalating. On Thursday, the Israeli military announced that&nbsp;a precision airstrike in Beirut killed Muhammad Hussein Srour, the Commander of Hezbollah's Aerial Command.

In other news from around the world, Boeing is in the headlines again. The US government's&nbsp;National Transportation Safety Board (NTSB) has issued&nbsp;“urgent safety recommendations” for some Boeing 737s- warning that critical flight controls could jam.

Click on the headlines to read more:

<a href="https://www.wionews.com/world/a-long-sought-meeting-donald-trump-to-meet-ukrainian-president-zelensky-today-762369">A long-sought meeting: Donald Trump to meet Ukrainian President Zelensky today</a>

<img alt="main img" src="https://cdn.wionews.com/sites/default/files/styles/story_page/public/2024/09/27/457071-untitled-1.png?imwidth=400" />

Republican presidential candidate and former United States (US) president Donald Trump would meet Ukrainian President Volodymyr Zelensky on Friday (Sept 27).&nbsp;Trump made this announcement on Thursday,&nbsp;&nbsp;just hours after Democratic President Joe Biden announced more than $8 billion in new military aid for Ukraine.

<a href="https://www.wionews.com/world/idf-eliminates-hezbollah-drone-commander-in-beirut-strike-over-700-dead-as-conflict-escalates-in-lebanon-762370">IDF eliminates Hezbollah drone commander in Beirut strike; over 700 dead as conflict escalates in Lebanon</a>

<img alt="main img" src="https://cdn.wionews.com/sites/default/files/styles/story_page/public/2024/04/08/423730-succession-2024-04-08t003304000.jpg?imwidth=400" />

As tensions escalate in the Middle East, concerns about a potential 'all-out war' between Israel and Hezbollah are growing. The Israeli Defence Forces (IDF) announced via a post on social media platform X that a precision airstrike in Beirut on Thursday (Sept&nbsp;26) has taken out Muhammad Hussein Srour,&nbsp;the Commander of Hezbollah's Aerial Command.

<a href="https://www.wionews.com/world/more-trouble-for-boeing-us-govt-issues-urgent-safety-warning-for-some-737s-762381">More trouble for Boeing: US govt issues urgent safety warning for some 737s</a>

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The National Transportation Safety Board (NTSB) of the United States (US) government has issued&nbsp;“urgent safety recommendations” for some Boeing 737s- warning that critical flight controls could jam, American media reported on Thursday (Sept 26).

<a href="https://www.wionews.com/world/alabama-executes-prisoner-alan-miller-in-states-second-ever-nitrogen-asphyxiation-execution-762359">Alabama executes prisoner Alan Miller in state's second-ever nitrogen-asphyxiation execution</a>

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Alabama on Thursday (Sept 26) executed convicted murderer Alan Miller&nbsp;in the second-ever nitrogen-asphyxiation execution since the US state&nbsp;pioneered the method which it says is less painful than lethal injections but human rights experts say may amount to torture.

Watch |&nbsp;Japan destroyer passes through Taiwan Strait, angering China

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Republican presidential candidate Donald Trump will be meeting Ukrainian President Volodymyr Zelensky later on Friday (Sept 27). The meeting will take place at the Trump Tower in New York.

Republican presidential candidate Donald Trump will be meeting Ukrainian President Volodymyr Zelensky later on Friday (Sept 27). The meeting will take place at the Trump Tower in New York. The meeting comes just hours after US President Joe Biden announced more than $8 billion in new military aid for Ukraine. The conflict between Israel and Iran-aligned Lebanese militant group Hezbollah is escalating. On Thursday, the Israeli military announced that a precision airstrike in Beirut killed Muhammad Hussein Srour, the Commander of Hezbollah's Aerial Command. In other news from around the world, Boeing is in the headlines again. The US government's National Transportation Safety Board (NTSB) has issued “urgent safety recommendations” for some Boeing 737s- warning that critical flight controls could jam. Click on the headlines to read more: A long-sought meeting: Donald Trump to meet Ukrainian President Zelensky today Republican presidential candidate and former United States (US) president Donald Trump would meet Ukrainian President Volodymyr Zelensky on Friday (Sept 27). Trump made this announcement on Thursday, just hours after Democratic President Joe Biden announced more than $8 billion in new military aid for Ukraine. IDF eliminates Hezbollah drone commander in Beirut strike; over 700 dead as conflict escalates in Lebanon As tensions escalate in the Middle East, concerns about a potential 'all-out war' between Israel and Hezbollah are growing. The Israeli Defence Forces (IDF) announced via a post on social media platform X that a precision airstrike in Beirut on Thursday (Sept 26) has taken out Muhammad Hussein Srour, the Commander of Hezbollah's Aerial Command. More trouble for Boeing: US govt issues urgent safety warning for some 737s The National Transportation Safety Board (NTSB) of the United States (US) government has issued “urgent safety recommendations” for some Boeing 737s- warning that critical flight controls could jam, American media reported on Thursday (Sept 26). Alabama executes prisoner Alan Miller in state's second-ever nitrogen-asphyxiation execution Alabama on Thursday (Sept 26) executed convicted murderer Alan Miller in the second-ever nitrogen-asphyxiation execution since the US state pioneered the method which it says is less painful than lethal injections but human rights experts say may amount to torture. Watch | Japan destroyer passes through Taiwan Strait, angering China ×

Morning brief: Trump to meet Zelensky today; West Asia crisis updates, and more

The National Transportation Safety Board (NTSB) of the United States (US) government has issued&nbsp;“urgent safety recommendations” for some Boeing 737s- warning that critical flight controls could jam, American media reported on Thursday (Sept 26).

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The 737s under recommendation also include the&nbsp;737 MAX line. A report by CNN said that the NTSB issued the warning that an actuator attached to the rudder on some 737 NG and 737 MAX aircraft could fail.&nbsp;

This development comes after the agency investigated a&nbsp;February incident where the pilots of a United Airlines MAX 8 landing in Newark reported their rudder pedals “stuck” in the neutral position.

<h2>The concern expressed by NTSB</h2>

In a statement, the NTSB said, "Boeing’s 737 flight manual instructs pilots confronted with a jammed or restricted rudder to ‘overpower the jammed or restricted system (using) maximum force, including a combined effort of both pilots."

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/boeing-union-hits-out-over-final-30-pay-rise-offer-761372">Boeing union hits out over 'final' 30% pay rise offer</a>

“The NTSB expressed concern that this amount of force applied during landing or rollout could result in a large input to the rudder pedals and a sudden, large, and undesired rudder deflection that could unintentionally cause loss of control or departure from a runway,” the statement added.

The NTSB recommended that Boeing come up with an alternative solution and warned pilots about the issue.

The agency's concern is the latest setback for Boeing. Since the beginning of this year, the aircraft manufacturer has been facing severe flak- ranging from a mid-air blowout of a door plug in January to a strike by 33,000 workers that started earlier in September.

<h2>Boeing pauses hiring amid strike</h2>

A few weeks back, Boeing announced that it was&nbsp;pausing hiring and taking sweeping steps to conserve cash after about 33,000 workers went on strike, a report by the news agency Reuters said.&nbsp;

Boeing&nbsp;Chief Financial Officer Brian West said the "strike jeopardizes our recovery in a significant way and we must take necessary actions to preserve cash and safeguard our shared future."

In addition to a hiring freeze across&nbsp;Boeing&nbsp;at all levels, the planemaker is stopping most employee travel, suspending non-essential capital expenditures and facilities spending and planning "significant reductions in supplier expenditures and will stop issuing the majority of supplier purchase orders on the 737, 767 and 777 programs."

(With inputs from agencies)

The National Transportation Safety Board (NTSB) of the United States (US) government has issued “urgent safety recommendations” for some Boeing 737s- warning that critical flight controls could jam, American media reported on Thursday (Sept 26).

The National Transportation Safety Board (NTSB) of the United States (US) government has issued “urgent safety recommendations” for some Boeing 737s- warning that critical flight controls could jam, American media reported on Thursday (Sept 26). The 737s under recommendation also include the 737 MAX line. A report by CNN said that the NTSB issued the warning that an actuator attached to the rudder on some 737 NG and 737 MAX aircraft could fail. This development comes after the agency investigated a February incident where the pilots of a United Airlines MAX 8 landing in Newark reported their rudder pedals “stuck” in the neutral position. The concern expressed by NTSB In a statement, the NTSB said, "Boeing’s 737 flight manual instructs pilots confronted with a jammed or restricted rudder to ‘overpower the jammed or restricted system (using) maximum force, including a combined effort of both pilots." Also read | Boeing union hits out over 'final' 30% pay rise offer “The NTSB expressed concern that this amount of force applied during landing or rollout could result in a large input to the rudder pedals and a sudden, large, and undesired rudder deflection that could unintentionally cause loss of control or departure from a runway,” the statement added. The NTSB recommended that Boeing come up with an alternative solution and warned pilots about the issue. The agency's concern is the latest setback for Boeing. Since the beginning of this year, the aircraft manufacturer has been facing severe flak- ranging from a mid-air blowout of a door plug in January to a strike by 33,000 workers that started earlier in September. Boeing pauses hiring amid strike A few weeks back, Boeing announced that it was pausing hiring and taking sweeping steps to conserve cash after about 33,000 workers went on strike, a report by the news agency Reuters said. Boeing Chief Financial Officer Brian West said the "strike jeopardizes our recovery in a significant way and we must take necessary actions to preserve cash and safeguard our shared future." In addition to a hiring freeze across Boeing at all levels, the planemaker is stopping most employee travel, suspending non-essential capital expenditures and facilities spending and planning "significant reductions in supplier expenditures and will stop issuing the majority of supplier purchase orders on the 737, 767 and 777 programs." (With inputs from agencies)

More trouble for Boeing: US govt issues urgent safety warning for some 737s

Boeing has revised its contract proposal for over 30,000 machinists as their strike enters its second week. The company’s new offer raises general wages by 30 percent over four years, up from 25 percent, and includes a 6,000 dollar ratification bonus.

Boeing Raises Contract Offer as Strike Enters Second Week

The union representing thousands of striking Boeing workers has criticized what the aircraft manufacturing giant said was its "best and final" pay offer that proposed a 30 per cent rise over four years according to a detailed report by BBC.

The new offer also included reinstatement of a performance bonus and better retirement benefits. Still, the International Association of Machinists and Aerospace Workers (IAM) said the offer was not negotiated with the union and that "it was thrown at us without any discussion" - a claim Boeing denies.

More than 30,000 Boeing workers went on strike earlier this month after rejecting a 25 per cent pay rise offer. Boasting of listening to its employees and their concerns, Boeing today presented its best and final offer, says the aircraft manufacturing giant through a letter.

Double the value of a one-off signing bonus<o:p></o:p>

The proposal doubles the value of a one-off signing bonus upon a new pay deal as $6,000 in return. Boeing said this offer is dependent on ratification by union members by midnight Pacific time on Friday 27 September (7 am GMT on Saturday 28 September). But IAM claims Boeing's new offer was delivered directly to union members and news media outlets without discussing it with the representatives of the union.

"This tactic is a blatant show of disrespect to you - our members - and the bargaining process," IAM said in a post on X, formerly known as Twitter.

The union said it would not conduct a vote of its membership before Boeing's deadline. Further, responding to that, Boeing told the BBC: "We have negotiated in good faith with the IAM since formal negotiations commenced in March."

"We presented the offer to the union first and then openly provided all the information to our employees," it added.

The back story of the dispute<o:p></o:p>

Boeing workers voted for a strike on September 13, after rejecting a new contract deal offering a 25 per cent pay rise over four years. Boeing, makers of 737 Max and other aircraft, faces a combined union ruling down its offer in a vote meant to decide whether its rank-and-file workers do walk off the job or not.

The union had been demanding several changes to workers' packages: a 40 per cent pay raise was one of them. All but five per cent of the members of the union, which makes the 737 Max and 777 among others, voted down Boeing's initial offer of those voting, 96 percent backed strike action until they have a new agreement.

Impact of the strike on Boeing<o:p></o:p>

The strike is likely to cost Boeing billions of dollars, increasing the crisis at a company that was already facing several difficulties. The impacts are already apparent across the industry and wider US economy too as Boeing has halted shipments of most parts as well as taken other cost-cutting measures. To save money, the company has already suspended the jobs of tens of thousands of staff.

It has also declared that US-based executives, managers, and employees would have to undergo one week of furlough every four weeks until the lockout lasts. The ruling government officials are acting as mediators between both parties.

The union representing thousands of striking Boeing workers has criticized what the aircraft manufacturing giant said was its "best and final" pay offer that proposed a 30 per cent rise over four years according to a detailed report by BBC.

The union representing thousands of striking Boeing workers has criticized what the aircraft manufacturing giant said was its "best and final" pay offer that proposed a 30 per cent rise over four years according to a detailed report by BBC. The new offer also included reinstatement of a performance bonus and better retirement benefits. Still, the International Association of Machinists and Aerospace Workers (IAM) said the offer was not negotiated with the union and that "it was thrown at us without any discussion" - a claim Boeing denies. More than 30,000 Boeing workers went on strike earlier this month after rejecting a 25 per cent pay rise offer. Boasting of listening to its employees and their concerns, Boeing today presented its best and final offer, says the aircraft manufacturing giant through a letter. Double the value of a one-off signing bonus The proposal doubles the value of a one-off signing bonus upon a new pay deal as $6,000 in return. Boeing said this offer is dependent on ratification by union members by midnight Pacific time on Friday 27 September (7 am GMT on Saturday 28 September). But IAM claims Boeing's new offer was delivered directly to union members and news media outlets without discussing it with the representatives of the union. "This tactic is a blatant show of disrespect to you - our members - and the bargaining process," IAM said in a post on X, formerly known as Twitter. The union said it would not conduct a vote of its membership before Boeing's deadline. Further, responding to that, Boeing told the BBC: "We have negotiated in good faith with the IAM since formal negotiations commenced in March." "We presented the offer to the union first and then openly provided all the information to our employees," it added. The back story of the dispute Boeing workers voted for a strike on September 13, after rejecting a new contract deal offering a 25 per cent pay rise over four years. Boeing, makers of 737 Max and other aircraft, faces a combined union ruling down its offer in a vote meant to decide whether its rank-and-file workers do walk off the job or not. The union had been demanding several changes to workers' packages: a 40 per cent pay raise was one of them. All but five per cent of the members of the union, which makes the 737 Max and 777 among others, voted down Boeing's initial offer of those voting, 96 percent backed strike action until they have a new agreement. Impact of the strike on Boeing The strike is likely to cost Boeing billions of dollars, increasing the crisis at a company that was already facing several difficulties. The impacts are already apparent across the industry and wider US economy too as Boeing has halted shipments of most parts as well as taken other cost-cutting measures. To save money, the company has already suspended the jobs of tens of thousands of staff. It has also declared that US-based executives, managers, and employees would have to undergo one week of furlough every four weeks until the lockout lasts. The ruling government officials are acting as mediators between both parties.

Boeing union hits out over 'final' 30% pay rise offer

Boeing is grappling with a significant crisis that could have far reaching impacts on both the company and its employee. With tens of thousands of workers on strike, Boeing has announced a series of drastic measures, including a hire freeze and potential furloughs.

Boeing considering hire freeze & temporary furloughs for employees

Boeing's management decisions within its main manufacturing plant in Washington are under the spotlight after its workers went on a prolonged strike. The aerospace giant is focused on coming&nbsp;up with a hiring freeze and a host of cost-cutting measures as it grapples with the challenges of rising production costs and shortcomings in meeting demand. This follows after about 30,000 factory workers have been on strike for several weeks, drastically reducing the output levels and forcing Boeing to reassess operational strategies according to a detailed report by CNBC. 

The strike highlighted the constant tensions between Boeing and its workers concerning pay and working conditions. According to the report, one of the company members stated, "We are committed to reaching a fair resolution with our employees while ensuring the sustainability of our operations." 

As the multinational corporation fends off increasing pressure from shareholders, it is also fighting the general economic slowdown that has derailed the operations of many in the aviation industry. The volatility in Boeing's shares was observed by analysts, which meant a reduced edge over its performance in the future.

Boeing has busted around $8 billion in the first half of this year due to production cuts led by a door-panel blowout issue. Further, the stock of Boeing has considerably underperformed over the last 5 years, as it has lost 59 per cent of its value and closed at $155.55 in the previous market close on September 16. 

Boeing's latest decisions form part of the trend now seen to characterise the entire aviation industry, whereby companies are indeed hard-driving and stringent in making decisions to balance costs and increase productivity. The company might even consider laying off employees going ahead, mainly to address the challenging economic conditions.

The current circumstances have forced most firms to reassess their operation models, and Boeing is not an exception. Following these events, the company is looking at options to increase automation in its production within the plants to enhance manufacturing, assembly, and production. This will hence, go a long way in mitigating the impact of any further stoppages occasioned by strikes by the workers.

Impact of the strike, future growth projections<o:p></o:p>

This strike carries more challenges beyond the immediate, short-term operating issues. These challenges are also related to labor relations in the US. Recently, global credit rating agency Moody's said that it had placed all of Boeing's credit ratings under review for a potential downgrade, and Fitch Ratings said an extended strike could put Boeing at risk for a downgrade, which could raise the borrowing costs of a manufacturer that already has rising debt.

Thus, Boeing faces an uphill task as it puts on hold its hiring process and focuses on other means of cost-cutting due to an ongoing worker strike; hence, the direction of the future for the company would be defined by its ability to effectively resolve these issues and return the company to stability with confidence from its shareholders, investors, and employees.

Boeing's management decisions within its main manufacturing plant in Washington are under the spotlight after its workers went on a prolonged strike. The aerospace giant is focused on coming up with a hiring freeze and a host of cost-cutting measures as it grapples with the challenges of rising production costs and shortcomings in meeting demand.

Boeing's management decisions within its main manufacturing plant in Washington are under the spotlight after its workers went on a prolonged strike. The aerospace giant is focused on coming up with a hiring freeze and a host of cost-cutting measures as it grapples with the challenges of rising production costs and shortcomings in meeting demand. This follows after about 30,000 factory workers have been on strike for several weeks, drastically reducing the output levels and forcing Boeing to reassess operational strategies according to a detailed report by CNBC. The strike highlighted the constant tensions between Boeing and its workers concerning pay and working conditions. According to the report, one of the company members stated, "We are committed to reaching a fair resolution with our employees while ensuring the sustainability of our operations." As the multinational corporation fends off increasing pressure from shareholders, it is also fighting the general economic slowdown that has derailed the operations of many in the aviation industry. The volatility in Boeing's shares was observed by analysts, which meant a reduced edge over its performance in the future. Boeing has busted around $8 billion in the first half of this year due to production cuts led by a door-panel blowout issue. Further, the stock of Boeing has considerably underperformed over the last 5 years, as it has lost 59 per cent of its value and closed at $155.55 in the previous market close on September 16. Boeing's latest decisions form part of the trend now seen to characterise the entire aviation industry, whereby companies are indeed hard-driving and stringent in making decisions to balance costs and increase productivity. The company might even consider laying off employees going ahead, mainly to address the challenging economic conditions. The current circumstances have forced most firms to reassess their operation models, and Boeing is not an exception. Following these events, the company is looking at options to increase automation in its production within the plants to enhance manufacturing, assembly, and production. This will hence, go a long way in mitigating the impact of any further stoppages occasioned by strikes by the workers. Impact of the strike, future growth projections This strike carries more challenges beyond the immediate, short-term operating issues. These challenges are also related to labor relations in the US. Recently, global credit rating agency Moody's said that it had placed all of Boeing's credit ratings under review for a potential downgrade, and Fitch Ratings said an extended strike could put Boeing at risk for a downgrade, which could raise the borrowing costs of a manufacturer that already has rising debt. Thus, Boeing faces an uphill task as it puts on hold its hiring process and focuses on other means of cost-cutting due to an ongoing worker strike; hence, the direction of the future for the company would be defined by its ability to effectively resolve these issues and return the company to stability with confidence from its shareholders, investors, and employees.

Boeing freezes hiring and aims to cut costs even as 30,000 workers strike

Boeing's first strike in 16 years may exacerbate global shortfalls of jetliners that have been driving up airfares and causing airlines to delay the retirement of their oldest aircraft, executives and analysts said.

US planemaker Boeing's West Coast workers walked off the job at midnight Friday after soundly rejecting a contract proposal, sending production of its workhorse 737 MAX to a grinding halt.

It's the first walkout at Boeing since 2008, and Chief Financial Officer Brian West said an extended walkout could damage output and "jeopardise our recovery."

"Boeing is a systemically important company for global aviation," Avolon chief financial officer Ross O'Connor told Reuters on Friday.

A strike "could have an impact on production levels, which could exacerbate some of the supply shortages that are in the market at the moment for sure," he said after Avolon announced it had acquired a large portfolio of jets from Castlelake.

Airlines have battled to expand capacity to meet growing demand as supplies of jetliners are restrained by parts shortages, industry-wide recruitment woes and overwhelmed maintenance shops.

Analysts have been warning for a while that the potentially brightest part of an industry's ultra-important business cycle could run out before airlines get a chance to fully enjoy demand.

"It's going to be a significant amount of time before we see that balance. I'm starting to evolve the hypothesis that it won't be (extra) supply that corrects it, but instead a softening of demand," said Rob Morris, global head of consultancy at Cirium Ascend.

Some say high airfares - although good for airlines in the short term - could themselves accelerate that tipping point.

"My view is that (average fares) will rise; and when ticket prices go up, then all other things being equal, you have lower traffic levels," said aviation economist Adam Pilarski, senior vice-president at AVITAS consultancy.

As Boeing freezes production of its most-sold jet, Europe's Airbus is struggling to meet its targets as well.

Airbus's Chief Executive, Guillaume Faury, expressed optimism at a US Chamber of Commerce conference this week that the European planemaker would meet a recently lowered target of 770 deliveries this year following a profit warning and engine supply glitch in the summer.

After a brief spike in deliveries in July, industry sources questioned how comfortably the world's largest planemaker would exceed last year's 735.

Low store aircraft inventory and high utilisation of in-service aircraft suggest a supply squeeze.

Boeing's first strike in 16 years may exacerbate global shortfalls of jetliners that have been driving up airfares and causing airlines to delay the retirement of their oldest aircraft, executives and analysts said.

Boeing's first strike in 16 years may exacerbate global shortfalls of jetliners that have been driving up airfares and causing airlines to delay the retirement of their oldest aircraft, executives and analysts said. US planemaker Boeing's West Coast workers walked off the job at midnight Friday after soundly rejecting a contract proposal, sending production of its workhorse 737 MAX to a grinding halt. It's the first walkout at Boeing since 2008, and Chief Financial Officer Brian West said an extended walkout could damage output and "jeopardise our recovery." "Boeing is a systemically important company for global aviation," Avolon chief financial officer Ross O'Connor told Reuters on Friday. A strike "could have an impact on production levels, which could exacerbate some of the supply shortages that are in the market at the moment for sure," he said after Avolon announced it had acquired a large portfolio of jets from Castlelake. Airlines have battled to expand capacity to meet growing demand as supplies of jetliners are restrained by parts shortages, industry-wide recruitment woes and overwhelmed maintenance shops. Analysts have been warning for a while that the potentially brightest part of an industry's ultra-important business cycle could run out before airlines get a chance to fully enjoy demand. "It's going to be a significant amount of time before we see that balance. I'm starting to evolve the hypothesis that it won't be (extra) supply that corrects it, but instead a softening of demand," said Rob Morris, global head of consultancy at Cirium Ascend. Some say high airfares - although good for airlines in the short term - could themselves accelerate that tipping point. "My view is that (average fares) will rise; and when ticket prices go up, then all other things being equal, you have lower traffic levels," said aviation economist Adam Pilarski, senior vice-president at AVITAS consultancy. As Boeing freezes production of its most-sold jet, Europe's Airbus is struggling to meet its targets as well. Airbus's Chief Executive, Guillaume Faury, expressed optimism at a US Chamber of Commerce conference this week that the European planemaker would meet a recently lowered target of 770 deliveries this year following a profit warning and engine supply glitch in the summer. After a brief spike in deliveries in July, industry sources questioned how comfortably the world's largest planemaker would exceed last year's 735. Low store aircraft inventory and high utilisation of in-service aircraft suggest a supply squeeze.

Experts warn Boeing strike could worsen global jetliner shortage

Boeing workers have gone on strike marking another chapter in a challenging year for American aircraft manufacturer. Watch to know more.

Boeing Strike: Impact on global flights

Boeing faces a major disruption as 30,000 factory workers in the Seattle and Portland areas voted overwhelmingly to strike. With 96 percent in favour of the walkout, The workers rejected Boeing’s contract offer, which included a 25 percent pay increase over four years. Union leader Jon Holden announced the strike decision.

Boeing workers vote overwhelmingly to strike

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