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Oct 1, 2020
10:11:06am
Zenoch All-American
Boeing confirms that 787 production is moving solely to Charleston in mid-2021


I'm curious about a couple of things:
- Will this lead to phasing out Renton (moving 737 to Everett)?
- Where will the new airplane program (was going to be 797) be located?
- Is Boeing using this as a labor leverage with the unions for future work? Or is this mainly about efficiencies for the 787?
- By mid-2021 hopefully vaccines will be out and available. By then international travel will be hopefully rebounding. Will we see a big spike in travel demand and as a result a big spike in new airplane production?

More importantly:
- What does this decision say about Calhoun (CEO)? Is he following the same leverage strategy done by McNerney? Are we going to see Boeing executive decisions being done in the old GE fashion? If so - I have lower confidence in Boeing's future. Stonecipher/McNerney was the worst thing to happen to Boeing. Most of Boeing's major problems can be traced to the cost-first strategy brought by them.

Before Stonecipher/McNerney - quality was always the most important. Engineering led the company. Once they came in and changed the culture - it led to a raft of problems (787 debacle, 737 MAX, etc, etc.). One of the most important aspects to engineering at Boeing is the long-term longevity of the workforce and knowledge-base. Pensions dramatically helped keep that knowledge base in place. With getting rid of the pension - and moving to a workforce philosophy where you longevity is not considered important - you lose critical knowledge and experience that is so important for products that have long lifecycles and very low risk tolerance. This year there have been so many experienced people leaving. Before I retired from Boeing in July I saw one statistic where they were going to be losing 70+ Technical Fellows over the next couple of months. This has probably escalated even more since I left. I'm very curious what Calhoun is going to do to get the engineering back to being quality first.
Zenoch
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Zenoch
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