The string of deadly accidents, allegations of disregarding worker rights, and corruption lawsuits continue to put Boeing through tough times. Now, the renowned airline company faces a new challenge as major clients Southwest Airlines and American Airlines have officially voiced their dissatisfaction. Here’s what you need to know about the latest developments and issues Boeing is facing…
Airlines Rise Up Against Boeing
While Boeing’s turbulent days continue, top executives from two of its largest clients, Southwest Airlines and American Airlines, have voiced serious criticisms. Both airlines expressed their dissatisfaction with Boeing’s performance, essentially issuing a warning to the company.
Southwest Airlines CEO Bob Jordan, in an interview with Yahoo Finance, stated, “Boeing has been a great partner to Southwest Airlines for 53 years, but we need Boeing to be stronger. Boeing has to be better!” Jordan revealed that while Southwest expects over 80 aircraft deliveries from Boeing in 2024, they might receive only 20.
Similarly, American Airlines CEO Robert Isom expressed his grievances on CNBC’s ‘Squawk Box,’ stating, “We’ve been practically fighting with Boeing for the last five years.” Isom added that he conveyed this message directly to Boeing’s new CEO, Kelly Ortberg.
In an effort to navigate its financial struggles, Boeing has offered 90 million shares of stock and approximately $5 billion in depositary receipts for sale. Based on Friday’s closing price of $155, the new offering equates to a total value of about $18.95 billion.
What are your thoughts on this? Do you think Boeing will overcome these challenging days? Feel free to share your opinions in the comments.
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