4 ms·

Watched an aljazira documentary about falling standards at a Boeing factory a couple of years ago and been waiting to see if something like this would happen.

Watched an aljazira documentary about falling standards at a Boeing factory a couple of years ago and been waiting to see if something like this would happen. Now they're gonna sacrifice a lamb, keep same corporate struture and philosophy, keep on making billions, remember to appologise even more next time.

kiba 7y ago
If the culture don't change, then people are going to keep repeating the same mistake, and someone will die unnecessary death.
- jvp 7y ago
  Didn't 346 people die in unnecessary deaths?!
  - CharlesColeman 7y ago
    > Didn't 346 people die in unnecessary deaths?! I suppose, but if more people die because of the now well-known management failures at Boeing continue, their deaths will be even more unnecessary.
    - jimclegg 7y ago
      The rush to get these planes back in the air being stalled has allowed us to discover other safety issues. Seems management continued to be irresponsible even after calamity struck.
gist 7y ago
Documentaries are interesting to watch but by design they are one sided and are typically slanted toward a particular point of view in a big way. This doesn't make them wrong but it's not like they are some rigorous presentation of facts.
ogre_codes 7y ago
I'm not so sure about the "Making Billions" bit. They are going to have to either do a massive 11 figure write down or spread out their losses on the Max over the next 10+ years. Either one is a pretty bitter pill to swallow. I'm betting we'll see a huge write down when the new CEO takes over, that way they can push as much blame as possible on the old regime and move forward with a clean-ish slate.
- formercoder 7y ago
  This is a pretty standard new CEO move. Big impairment, net income goes way down, next few years look a lot better. Meanwhile cash flow doesn’t change.
  - hn_throwaway_99 7y ago
    But the cash flow will definitely change. They are selling fewer planes in the near term.
    - ogre_codes 7y ago
      That's exactly why the new CEO will push for a big impairment immediately. That way the very-terrible-bad results are attributed to the former execs. The new CEO is essentially resetting the baseline and can post growth from there. If the 787 recovers eventually, it's a windfall and the new CEO looks like a hero for implementing revolutionary change.
  - jimclegg 7y ago
    How does cash flow not change when you have to scrap the whole lot of 737Max orders?
    - formercoder 7y ago
      I meant the impairment itself does not impact cash flow (setting aside taxes, can’t comment there). See Verizon Oath write down. Of course this can happen to already distressed firms who are experiencing cash flow issues. It’s just a way of making things appear “even worse” in your books without materially impacting your day to day business.
BitwiseFool 7y ago
Do you have a link to it? Or was it only shown on television? I'd like to watch it.
- blackoil 7y ago
  Maybe https://youtu.be/rvkEpstd9os https://youtu.be/rvkEpstd9os
- pdelgallego 7y ago
  Not OP, but I remember Al Jazeera reporting about it in 2014. E.g: https://www.youtube.com/watch?v=rvkEpstd9os https://www.youtube.com/watch?v=rvkEpstd9os https://www.aljazeera.com/investigations/boeing787/2014/09/interview-boeing-factory-worker-201491154214602860.html https://www.aljazeera.com/investigations/boeing787/2014/09/i...
hanniabu 7y ago
> Now they're gonna sacrifice a lamb Reminds me of the HBO show Succession. I'm sure they had very similar discussions.

kiba 7y ago

If the culture don't change, then people are going to keep repeating the same mistake, and someone will die unnecessary death.

jvp 7y ago
Didn't 346 people die in unnecessary deaths?!
- CharlesColeman 7y ago
  > Didn't 346 people die in unnecessary deaths?! I suppose, but if more people die because of the now well-known management failures at Boeing continue, their deaths will be even more unnecessary.
  - jimclegg 7y ago
    The rush to get these planes back in the air being stalled has allowed us to discover other safety issues. Seems management continued to be irresponsible even after calamity struck.

gist 7y ago

Documentaries are interesting to watch but by design they are one sided and are typically slanted toward a particular point of view in a big way. This doesn't make them wrong but it's not like they are some rigorous presentation of facts.

ogre_codes 7y ago

I'm not so sure about the "Making Billions" bit. They are going to have to either do a massive 11 figure write down or spread out their losses on the Max over the next 10+ years. Either one is a pretty bitter pill to swallow. I'm betting we'll see a huge write down when the new CEO takes over, that way they can push as much blame as possible on the old regime and move forward with a clean-ish slate.

formercoder 7y ago
This is a pretty standard new CEO move. Big impairment, net income goes way down, next few years look a lot better. Meanwhile cash flow doesn’t change.
- hn_throwaway_99 7y ago
  But the cash flow will definitely change. They are selling fewer planes in the near term.
  - ogre_codes 7y ago
    That's exactly why the new CEO will push for a big impairment immediately. That way the very-terrible-bad results are attributed to the former execs. The new CEO is essentially resetting the baseline and can post growth from there. If the 787 recovers eventually, it's a windfall and the new CEO looks like a hero for implementing revolutionary change.
- jimclegg 7y ago
  How does cash flow not change when you have to scrap the whole lot of 737Max orders?
  - formercoder 7y ago
    I meant the impairment itself does not impact cash flow (setting aside taxes, can’t comment there). See Verizon Oath write down. Of course this can happen to already distressed firms who are experiencing cash flow issues. It’s just a way of making things appear “even worse” in your books without materially impacting your day to day business.

BitwiseFool 7y ago

Do you have a link to it? Or was it only shown on television? I'd like to watch it.

blackoil 7y ago
Maybe https://youtu.be/rvkEpstd9os https://youtu.be/rvkEpstd9os
pdelgallego 7y ago
Not OP, but I remember Al Jazeera reporting about it in 2014. E.g: https://www.youtube.com/watch?v=rvkEpstd9os https://www.youtube.com/watch?v=rvkEpstd9os https://www.aljazeera.com/investigations/boeing787/2014/09/interview-boeing-factory-worker-201491154214602860.html https://www.aljazeera.com/investigations/boeing787/2014/09/i...

hanniabu 7y ago

> Now they're gonna sacrifice a lamb Reminds me of the HBO show Succession. I'm sure they had very similar discussions.