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All airlines should cancel MAX orders. After watching the CEO defend their position in the Q2 shareholder’s meeting, he killed the reputation of Boeing from inv
by spectramax 7y ago
All airlines should cancel MAX orders. After watching the CEO defend their position in the Q2 shareholder’s meeting, he killed the reputation of Boeing from investors, people and customers. Boeing deserves nothing but financial punishment and consequences of the people that died in the two crashes.
Edit: Link to the meeting https://youtube.com/watch?v=xOQmQpKHVWA https://youtube.com/watch?v=xOQmQpKHVWA
- rapsey 7y agoThis completely unrealistic. CEOs will always defend the company. That is their job.
- king_phil 7y agoIt was not written that he was defending the company, but depending their position. Not the same.
- spectramax 7y agoDefinitely. However, managing public relations and the image of the company, maintaining customer relationships is also CEO’s job.
- justicezyx 7y agoDefend in what sense? In defending what made the company great, or just the share price?
- sametmax 7y agoAnd he failed at it, since he lost the confidence of the room after he spoke. There are many strategies you can choose from to defend your company. Not just "we're cool guys".
- alkonaut 7y agoA Japanese CEO crying and bowing in silence is defending the company and the brand. This is defending the short term stock value and nothing else.
- lonelappde 7y agoWhy? The crying is obviously fake. It's just a cultural gimmick like USA's "I apologize if anyone felt hurt by what they thought we did." Crocodile tears and calisthenics don't bring back the dead or prevent future deaths.
- alkonaut 7y agoFake or not, it’s the symbol of total and unconditional responsibility towards their customers, not their shareholders.
- rapsey 7y agoUnfortunately the rest of us do not live in a culture where this is a valid course of action and like I said, criticizing a CEO for not doing it is unrealistic. Our media is much more attack based, stock value much more tied to positive media coverage and legal proceedings against the company much more likely.
- JohnJamesRambo 7y agoHow do you know it is fake?
- hyperbovine 7y agoTheir job is to maximize shareholder value. Which could certainly be accomplished in some cases by forthrightly admitting to wrongdoing. The problem is that almost invariably this action immediately precedes said CEO deciding to spend more time with his/her family.
- whatshisface 7y agoForthrightly admitting to wrongdoing might impact the lawsuits.
- gamblor956 7y agoTheir job is to maximize shareholder value. This is false. A CEO's job is to run the company. The Board's job is to protect a shareholder's investment, which does not mean maximizing it. The lie that a CEO's job is to maximize shareholder's value didn't become a popular meme until CEOs were suddenly awarded large stock compensation grants during the Reagan era, and is entirely about CEOs maximizing their personal holdings to the detriment of every other shareholder.
- lonelappde 7y agoThis is wrong. CEOs have wide latitude to decide how to maximize value, and how to measure value, but that is still their job. CEOs raiding short term coffers is a different issue.
- sunstone 7y agoOK sure, but over what time frame should shareholder value be maximized? A quarter, a year, several years? The strategies might look quite different.
- golergka 7y agoCEOs job is to protect reputation of the company. There are times when honestly owning your mistakes is better for reputation than pathetic attempts to save face.
- _ph_ 7y agoAnd what should they buy instead? See my longer comment about that.
- seanmcdirmid 7y agoC919s? Here is china’s big chance I guess.
- nickserv 7y agoUS airlines would probably be very jittery buying a Chinese place, given the current trade war with China. For other countries, it could be a way in, especially because of the backlog on the A320. But it does mean a large investment in training and parts logistics. It would make more sense for a country that wanted to score political points with China.
- _ph_ 7y agoYes, this is really giving new competitors an opening. But of course, adding a completely new supplier to your fleet is a large step for any airline and will take some time and effort to implement.
- clintonb 7y agoThe poster was being sarcastic. There is almost zero chance that Boeing loses [US] orders to a Chinese manufacturer. The tariffs in that sector are too high, and the trust in Chinese manufacturing is too low. Even switching from Boeing to Airbus is not likely. As you point out, switching a new supplier is a large step, and too large for many airlines to make.
- seanmcdirmid 7y agoChina uses western avionics and jet turbines, so there isn’t much difference between it and a 737 or 320. But they don’t win out in fuel efficiency, so they probably won’t do that great outside of China and belt road countries.
- hourislate 7y agoI'm just waiting for the US Tax payer to pick up the charge through a bailout when Boeing has to pay out. Every airline in the world (that has 737 Max Aircraft) is going to want some sort of compensation (Billions $$$) for the grounding. We should probably get some lube because it's coming.
- Retric 7y agoCurrently it does not seem to have cost Boeing much money. They paid 100M to the victims, but as far as airlines are considered they have gained more orders after the issue than they have lost. Airlines could sue, but it’s a near monopoly situation with two major competitors making that a risky long term choice. PS: You can see this in their stock price which dipped a little, but has been minimally affected.
- hourislate 7y ago>Currently it does not seem to have cost Boeing much money. Considering this fiasco is not over, I would expect it to cost zero until the plane flies again. AA (just 1 airline) canceled 115 flights per day since it began. They only have 24 of the aircraft. The order Boeing received at the last Paris airshow was based on a Letter of Intent and not a firm contract. I would assume if it becomes a firm order it will be heavily discounted (cost/break even) and will be reflected in Boeing's profits. It's not over until the fat lady sings.
- dreamcompiler 7y agoWhat should happen when these "too big to fail" bailouts happen is that the original company is allowed to fail and declare bankruptcy, while the government becomes in effect a VC that kickstarts the creation of at least two different, new companies that rise from the ashes. Companies that develop a "shareholders-first, engineering and safety last" culture are time bombs waiting to explode, and they should not be rewarded for exploding.
- anticensor 7y agoUS partnership and commerce law do not allow for partially state-owned partnerships.