Last week, Boeing (US:BA) was hauled before the Federal Aviation Administration to give details of a new roadmap that is “necessary to reset the safety culture” at America's biggest plane maker.
Tip style
Sell
Risk rating
High
Timescale
Short Term
Bull points
- Buoyant end markets
- Potential recovery play
- Key defence contractor to US military
Bear points
- Keeps missing its own guidance
- Ramp-up targets look too ambitious
- Share sale may be needed to fund Spirit deal
- Ongoing safety concerns
Ever since a plugged door blew off a Boeing 737 Max 9 Alaska Airlines plane in mid-flight in January, the regulator has taken “unprecedented steps to increase oversight on Boeing”. This has meant everything from having more safety inspectors on site to halting production expansion.