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BA

Just saw a news report that majority of layoffs at BA are machinists and engineers. Glad to see they kept the managers.

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Re: BA


@waffle wrote:

Just saw a news report that majority of layoffs at BA are machinists and engineers. Glad to see they kept the managers.


Humor aside, the ratio of managers to machinists would be low - I doubt managers would be spared from layoffs.

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Frequent Contributor

Re: BA

I can tell you how many people were laid off from Human Resources.

None.

Human Resources is to business what entropy is to thermodynamics. The total amount in the world never decreases.
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Re: BA

  • According to Calhoun, Boeing is laying off a total of 6,770 employees.
  • The company is notifying these workers about the layoffs this week.
  • Employees affected by this will receive severance pay, career transition services, and COBRA health care coverage if they are in the U.S.
  • These new layoffs come after the company completed its voluntary layoff program.
  • Boeing also notes that layoffs are coming to its international locations as well.
  • It doesn’t reveal how many employees this will affect.
  • The company also points out that these layoffs will be announced locally and will take place at the proper times for each situation.
  • The layoffs are the effect of the novel coronavirus disrupting travel and the economy.
  • Calhoun also notes that Boeing is seeing signs of recovery, but warns it will take years to bounce back to its pre-coronavirus levels.  https://investorplace.com/2020/05/boeing-layoffs-2020-details-for-investors/

Remember back a few year BA was a undervalued and a hot buy? It did real well, until the plane crash. I will bet is a few years this will repeat itself. I don't think they will disappear anytime soon. Sad for all those workers!

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Re: BA

I will go out on the limb and say that BA will go through an orchestrated bankruptcy to wipe out its debt - and will re-emerge with newly issued common stock a few years later and the gumment will own a nice chunk of new stock. My crystal ball is foggy in terms of timing. Very similar to what happened to GM.

Current stockholders - just watch out for the prediction of this Carnac!! -:)

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Re: BA

I don't have to go out on a limb to predict that recertification of the MAX is about to get very ugly.  The FAA has blown its credibility with the other aviation authorities in the world.  They want an independent review of the MAX's design, not just the FAA's certification that the MAX's little MCAS problem of flying the airplane into the ground is finally fixed.  This is not going to end well for the MAX or for Boeing.  And probably not for holders of BA, either...

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Explorer ○

Re: BA

Are they still a viable company?  Just kidding, sort of.  Can't get rid of the management that's leading them out of this morass to the future!  By the way, when is the MAX going to be running again??  I guess they have time with so many planes grounded.  One of those undeserved breaks of Covid.

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Re: BA

BA lost to Space X in space race.

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Explorer ○

Re: BA

The McDonnell's are rolling in their graves.  What a tragedy this once great company has become.

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Re: BA

Typical of any layoffs, starting from bottom working its way slowly to the up; exactly opposite of raises/bonuses, which is from top to bottom.

Smart management also minimizes claimed layoff numbers/percentages and magnifies/brags raises.

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Re: BA

Just saw that BA completed 737MAX certification flight tests on July 1.  This stock is a big gamble.  It’s around $180/share today.  It got as low as under $100 last March. Then it ran up to over $200 for a bit.  There are 400+ MAXs built but not delivered.  And COVID has diminished the need for new airplanes.  This one is not for the faint of heart.

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Re: BA

I still own 60% of the shares I bought in March.  Current price is substantially lower than Morningstar fair value estimate.  Morningstar ranks it as a wide moat stock.  It is not a Microsoft but it is not an oil stock either.  

 

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Re: BA

Yo Chuck....where you at? A discussion on BA is not complete without this BA retiree.....

Others more knowledgeable on air transport correct me if I misspeak....but as I understand it, if you want a wide-body passenger hauler between continents, you've got two choices....Airbus and BA. And also as I understand it, the moat around BA is about as large as a moat can get....its ner impossible to create another wide body maker without years and years of gradual building...or so I've read.

BruceM

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Re: BA


@BruceM wrote:

Yo Chuck....where you at? A discussion on BA is not complete without this BA retiree.....

 


I believe @ElLobo is currently in Branson, Missouri auditioning for a spot with The Oak Ridge Boys.

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Re: BA


@cliff wrote:

@BruceM wrote:

Yo Chuck....where you at? A discussion on BA is not complete without this BA retiree.....

 


I believe @ElLobo is currently in Branson, Missouri auditioning for a spot with The Oak Ridge Boys.


@BruceM 

Yup. tonight's our last night here.  We're here with my sister and her hubby.  She has been coming here every year for the last quarter century.  It was her late hubby's favorite place to go.

Wrt BA, I've said my piece on BA over the last 6 months.  The 737Max fiasco was a disgrace, as far as I am concerned.  Mega ditto for coming in second place to SpaceX and Musk.

Wrt wide body air transport, in fact, anything other than a jet with less than about a 100 person capacity, there are only 2 real competitors these days, Boeing and Airbus.  I don't know ifn they still make it, but Boeing used to offer the B717, a 100 person business jet.  That was their smallest passenger jet.  But I just looked at their website and don't see it offered anymore.  The next smallest plane is the B737-100, which can be configured to a max 103 passengers.

Boeing has been the final result of the consolidation of several airline manufactures over the years.  Of course there's McDonald Douglas, which bought Boeing, as the saying goes, 20 years ago.  Lockeed Martin produced commercial jets up until the 80's, the last one being their widebody L1011 WhisperJet.

Getting back to Boeing, there was a fundamental change in the corporate culture at Boeing.  Prior to the 'merger', Boeing was a company of engineers, from top to bottom, which was always way more concerned about quality than about cost and schedule, in terms of the three biggies in project management.  That changed after the merger and, IMHO, led to the 737Max and SpaceX issues.

For a great description, see "The Long-Forgotten Flight That Sent Boeing Off Course - A company once driven by engineers became driven by finance."

All things being equal, Boeing size as well as its expertise, especially in commercial airliners, space, and defense, as well as logistics and manufacturing, will result in Boeing surviving, although there will be rough years until the leisure and travel industries fully recover.  It is estimated that something like 1/2 of the US GDP is due to Boeing and their foreign sales.

ElLobo, de la casa de la toro caca grande
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Re: BA

Yo Chuck....

I knew you'd bring everybody up to speed.

The concept of 'engineers-to-financiers' is likely the right one. I'd imagine the leadership got good, over the years, of milking out the profitability, as BAs dividend was strong and well the dividend well covered over the years I held it. But the buffer between profitability and safety likely got thinner and thinner until it broke...at exactly the worst time.

I'll continue to watch.....

Thanks

BruceM

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Re: BA

Did you mean 1/2% of US GDP? 

In any case, stock comp and the corresponding buy backs create all sorts of wrong incentives for management.  I think stock comp should not be allowed to vest for five years.  That way, a CEO is not doing all sorts of financial chicanery to keep the stock price high and cash out as he leaves.   A part of a CEO job is a good succession planning and leaving the company in a shape for long term success.  If vesting is delayed as above, his last five years of stock grants will vest after his departure and he will be sitting along with other long term stockholders during that time.  Is the above or a good variation of it likely to become a law in the US?  No - our politicians are servants to campaign contributions.

What do you guys think of the current CEO?

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