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Boeing enters 2025 aiming for recovery amid leadership changes

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Boeing enters 2025 aiming for recovery amid leadership changes
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Boeing faced significant challenges in 2024, including a major incident with the Alaska Airlines 737 MAX 9 and a lengthy machinists' strike. These events have impacted the company's recovery plans. As Boeing moves into 2025, it aims to restore its commercial aircraft operations and improve its financial situation under new leadership.

Kelly Ortberg took over as president and CEO in August, succeeding David Calhoun during a turbulent period for the company. The end of the International Association of Machinists and Aerospace Workers strike has allowed Boeing to resume production at its Washington state facilities. However, changes in leadership have occurred, with several C-level executives departing since Ortberg's appointment.

Ortberg emphasized the need for cultural change within Boeing to return to its roots as an industry benchmark. He stated, "Much has been written about how we got to where we are, but most also recognize that Boeing was once a benchmark for what good culture looks like. And I believe we can return to that legacy."

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Financial stability remains a concern for Boeing as it navigates its recovery. The company ended Q3 with significant cash outflows and substantial debt levels. Ratings agencies warned of potential credit downgrades if liquidity issues were not addressed swiftly.

To regain financial footing, Boeing aims to boost revenues from its commercial aircraft division. This includes clearing its backlog of uncertified aircraft such as the 737 MAX 7, 737 MAX 10, and 777X models. Certification efforts are crucial for these models, which hold numerous orders but face delays due to technical challenges.

The company is focused on following regulatory guidelines closely after past criticisms over unrealistic deadlines under former leadership. While striving for swift certification progress, Boeing acknowledges the importance of adhering to FAA requirements.

As part of strategic adjustments, layoffs have been announced while preparing for future commercial aircraft programs. Ortberg highlighted the necessity for a leaner organization to better position Boeing moving forward.

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