Boeing Co (NYSE:BA) has faced some turbulent years with several safety issues, public criticism and substantial leadership overhauls. Here’s the latest update on ongoing safety concerns and the effects of an ongoing labor strike.
Regulatory and Safety: In an alert issued Monday, the U.S. Federal Aviation Administration (FAA) warned operators of Boeing 737 airplanes that the rudder system could jam due to a faulty part.
Bloomberg reported the National Transportation Safety Board (NTSB) previously criticized the FAA for downplaying the issue’s urgency. The NTSB issued urgent guidance to both the FAA and Boeing about resolving the issue, said to be caused by defective parts supplied by Rtx Corp (NYSE:RTX).
Roughly 271 suspect components may still be in use on non-U.S. carrier aircraft, while 16 may still be in use in the U.S., Bloomberg reported.
Strike Update: Meanwhile, Boeing has issued guidance on the impact of the labor strike’s impact on September delivery figures.
Boeing delivered over 33 aircraft to customers in September amid the disruption to manufacturing operations, Bloomberg stated. The 33,000 striking employees began their strike on Sept. 13.
The company warned that the ongoing work stoppage in Washington state will reduce future deliveries. Previous negotiations between the two parties have broken down. Workers demanded a 40% pay increase which Boeing did not meet.
The Arlington, Virginia-based company received subsequent criticism for cutting health benefits for the striking employees.
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