KIRO Seattle:
Boeing strike may have far-reaching ramifications
Boeing Corporation building.© IanDewarPhotography
/ Adobe Stock
Some 33,000
machinists at the Boeing Company are on strike after rejecting a contract
proposal, and the longer it goes on the worse it could be for the aviation
industry.
For one, Boeing is already dealing with enough
problems and scrutiny stemming from the January 5 incident in which a door
panel blew off an Alaska Airlines plane in midair. It was revealed that
the company has
been losing money for years.
A strike not only slows down production but slows
Boeing from salvaging its battered reputation.
A lengthy strike would also virtually halt
production of the 737 Max, Boeing’s best-selling plane. TD Cowen analyst Cai
von Rumohr said the current walkout could last into mid-November.
“Boeing needs to keep making these (planes)
because Boeing has been hemorrhaging money because of their safety problems,”
said Art Wheaton, director of
labor studies at Cornell University’s School of Industrial and Labor Relations. “And safety problems are quite often caused by
understaffing.”
Fitch Ratings said Boeing’s credit rating wouldn’t
feel the effects of a one- or two-week strike but Boeing work stoppages have
traditionally averaged about six weeks. So, airlines and airline passengers might not feel the pinch right
away, but as the holidays draw close they will.
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