Aviation

Boeing to Slash 17,000 Jobs Worldwide Amid Ongoing Factory Strike

Boeing to Slash 17,000 Jobs Amid Ongoing Factory Strike

Boeing, one of the world’s largest aerospace manufacturers, is facing a severe crisis. The company announced on Friday that it will lay off 17,000 employees—roughly 10% of its workforce.

This decision comes amid a prolonged strike, production delays, and ongoing safety concerns with its aircraft. Kelly Ortberg, Boeing’s CEO since August, delivered the news, stating, “Our business is in a difficult position, and it is hard to overstate the challenges we face together.

Beyond navigating our current environment, restoring our company requires tough decisions, and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term.”

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Boeing has been struggling financially, with the last reported profit in 2018. The company’s largest union, with 33,000 members, has been on strike for nearly a month after rejecting a labor deal. The ongoing walkout is reportedly costing Boeing around a billion dollars each month as negotiations remain at a standstill.

Compounding these issues, Boeing’s much-anticipated boeing 777x wide-body plane is now six years behind schedule, with deliveries postponed until 2026. This follows the discovery of structural damage during flight tests. Boeing also announced it will stop manufacturing its commercial 767 freighters after fulfilling its remaining orders by 2027.

Financially, the company expects to report a significant third-quarter loss—nearly $10 per share—and a total cash outflow of $1.3 billion. boeing new aircraft commercial airplane unit faces a $3 billion pretax charge, while its defense business will absorb an additional $2 billion hit.

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The strike has severely impacted production at key boeing facilities, particularly in Seattle, where half of the company’s nearly 150,000 employees work. Since 2019, Boeing has lost approximately $25 billion.

Ortberg was brought in over the summer to help the company regain public trust following safety concerns, especially surrounding the 737 Max line, which was involved in two deadly crashes. Earlier this year, a separate incident involving a panel popping off a 737 Max mid-flight reignited concerns. A Federal Aviation Administration investigation following the event found that Boeing had failed 33 out of 89 product audits.

Aviation

DOT Penalizes Lufthansa $4 Million for Stopping Jewish Passengers From Boarding

The U.S. Department of Transportation (DOT) has imposed a $4 million penalty on Lufthansa for discriminating against Jewish passengers traveling from New York City to Budapest via Frankfurt in May 2022. The incident marked the largest civil rights fine ever levied by the DOT against an airline.

The case stems from an incident where Lufthansa denied 128 Jewish passengers — most of whom were wearing traditional Orthodox Jewish attire — from boarding their connecting flight in Germany.

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The airline’s actions were based on the alleged misconduct of a few individuals during the first leg of the journey from John F. Kennedy Airport (JFK) to Frankfurt (FRA). However, many of those passengers did not know each other or travel as a group. DOT investigators found that Lufthansa treated them as a single entity, barring them from their connecting flight to Budapest (BUD) for the actions of a few.

Transportation Secretary Pete Buttigieg emphasized the department’s commitment to protecting passengers’ rights. “No one should face discrimination when they travel, and today’s action sends a clear message to the airline industry that we are prepared to investigate and take action whenever passengers’ civil rights are violated,” he said. Buttigieg added that DOT’s increased enforcement efforts aim to ensure airlines treat all passengers with fairness and dignity.

This aircraft won’t need a runway

The investigation began after DOT received over 40 complaints from Jewish passengers affected by the incident. Despite some passengers failing to follow crew instructions on the first flight, lufthansa business lounge newark did not specifically identify any noncompliant individuals.

Instead, the airline placed a blanket hold on the tickets of over 100 passengers, preventing them from continuing their journey. lufthansa airways acknowledged that this approach could lead to excluding compliant passengers but deemed it impractical to address each case individually.