Jim Cramer has reserves with Boeing management; in that he is not seeing the crisis management style that the company needs
According to CNBC host Jim Cramer during the ‘Sqwark on the Street’ show – “he is not seeing the evidence that “Boeing management is getting down onto the factory floor and getting these problems solved until this thing is ready.”
Cramer continued his observations: “I want to know why they didn’t tell us, why do I have to learn from the FAA”
“Why didn’t I learn from the company, look we’ve got some issues. The answer is: blindside, blindside, blindside – I am tired of being blindsided by a great American company.”
The letter seen by media dated May 13, from the FAA’s Ian Won, the manager of the local FAA office that judges whether Boeing has met all regulatory standards, warned the airframer that they ‘Boeing’ may have to increase the number of test flights planned for the 777X and that certification realistically is now more than two years out, probably in late 2023.
That then could push deliveries into 2024 – some four years later than planned.
The FAA Letter
The letter from the FAA cited a number of concerns; particularly a serious flight control incident during a test flight on Dec. 8, 2020, when the plane experienced an “un-commanded pitch event” – where the aircraft nose pitched abruptly without pilot input.
Following that incident, it is understood that Boeing has yet to satisfy the FAA that it has fully understood and corrected the issue to prevent recurrence.
The Boeing 737 MAX also suffered nose pitch issues that led to the MAX grounding for 21 months starting in 2019 after flawed new flight controls caused two fatal crashes.
In the letter, Mr Won expressed concern about proposed modifications involving late changes to both software and hardware in the electronics of the jet’s flight controls.
“The aircraft is not yet ready,” Won wrote. “The technical data required for type certification has not reached a point where it appears the aircraft type design is mature and can be expected to meet the applicable regulations.”
He also told Boeing that a critical avionics system proposed for the airplane does not meet requirements.
The Seattle Times
According to the Seattle Times, an FAA official, who asked not to be identified in order to speak freely, said the drag on 777X certification is now “the subject of a lot of attention” at high levels both within the agency and at Boeing.
Within the FAA, the person said, “there’s a general feeling that Boeing has kind of lost a step,” referring to the slide away from a historic reputation for engineering prowess.
And because of all the missteps, the official added, “the days of Boeing being able to say to the FAA ‘Just trust us’ are long gone.”
One could of course almost expected the FAA to also have to be getting extremely vigilant following a number of issues with new aircraft from Boeing, including the recent Max, and the battery smoking incidents on the 787 Dreamliner.
In a statement Friday, June 25, 2020, Boeing said it “remains fully focused on safety as our highest priority throughout 777X development.”
Aircraft Completion News waits to find out what this means for the first Green 777X deliveries planned for completion centers.
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