Category Archives: Boeing

Boeing to resume 787 operations in South Carolina

Boeing will resume 787 operations at Boeing South Carolina (BSC), with most teammates returning on May 3 or May 4. The return includes all operations that were temporarily suspended on April 8 in response to the COVID-19 pandemic.

Managers will contact each teammate returning to work with report date and shift information. Those who are not contacted should not return to the site until contacted by their manager to do so. Teammates who are able to work from home should continue to do so.

“The health and safety of our teammates, their families and our community is our shared priority,” said Brad Zaback, Boeing South Carolina site leader and 787 vice president and general manager. “Our approach to resumption of operations ensures we honor that priority by ensuring personal protective equipment is readily available and that all necessary safety measures are in place to resume essential work for our customers and prioritize the health and safety of our team. We have also taken the necessary steps to ensure a steady supply base for our operations.”

Senior leaders will return on Thursday, April 30, and managers will return on Friday, May 1, to prepare for the operations resumption. BSC teammates will return to work beginning with third shift on Sunday, May 3. First and second shift teammates will return to work on Monday, May 4.

BSC has taken extra precautions and instituted comprehensive procedures to prepare the work environment and ensure the health and safety of teammates. These measures include:

Enhancing cleaning of all buildings, including pressure washing of restrooms and thorough cleaning of break areas, cafeterias, conference rooms and other community spaces.
Posting of signage throughout the site to help keep enhanced cleanliness top-of-mind.
Adding new hand sanitization stations across the site.
Installing visual cues to reinforce physical distancing practices particularly in conference rooms, cafes and other community spaces.
Encouraging all teammates to bring and wear cloth face coverings. Some teammates will be required to wear procedural masks, which will be provided, in certain areas when working in close proximity.
Making voluntary temperature screening stations available for teammates on all shifts via no-touch thermal scanners.

Boeing will continue to monitor guidance on COVID-19, evaluate impact on company operations and adjust plans as the situation evolves.

Photo: Boeing.

Embraer claims Boeing “wrongfully terminated the MTA”

Embraer has issued this statement:

Embraer S.A., in compliance with the provisions of the CVM Instruction 358/02 and in connection with the strategic partnership between Embraer and The Boeing Company, informs its shareholders and the market that Embraer received a notice sent by Boeing communicating its decision to terminate the Master Transaction Agreement, based on Boeing’s assertion that supposedly certain closing conditions in the MTA have not been satisfied by Embraer.

Embraer strongly believes that Boeing has wrongfully terminated the MTA, that it has manufactured false claims as a pretext to seek to avoid its commitments to close the transaction and pay Embraer the US$4.2 billion purchase price. Embraer believes Boeing has engaged in a systematic pattern of delay and repeated violations of the MTA, because of its unwillingness to complete the transaction in light of its own financial condition and 737 MAX and other business and reputational problems.

Embraer believes it is in full compliance with its obligations under the MTA and will pursue all remedies against Boeing for the damages incurred by Embraer as a result of Boeing’s wrongful termination and violation of the MTA.

The Transaction involved a long, costly and complex process, which was supported by government authorities and the substantial majority of Embraer’s shareholders, all understanding that the Transaction would be in the best interest of Embraer, its employees, suppliers and customers in commercial aviation.

Embraer remains today a successful, efficient, diversified and vertically integrated company, with a history of serving customers with highly successful products and services built on a strong foundation of engineering and industrial capabilities. Embraer is an exporter and technology developer, with global presence and defense, executive and commercial businesses. Our employees will proudly continue to provide for our clients the high quality products and services they depend on from Embraer every day.

Embraer’s history of over 50 years is lined with many victories but also some difficult moments. All of them were overcome. And that’s exactly what Embraer is going to do again. Embraer shall overcome these challenges with strength and determination.

Embraer will keep its shareholders, the market in general, and all employees, suppliers and clients informed about any relevant updates.

Boeing terminates agreement to establish joint ventures with Embraer

Boeing has made this announcement:

Boeing announced today that it has terminated its Master Transaction Agreement (MTA) with Embraer, under which the two companies sought to establish a new level of strategic partnership. The parties had planned to create a joint venture comprising Embraer’s commercial aviation business and a second joint venture to develop new markets for the C-390 Millennium medium airlift and air mobility aircraft.

Under the MTA, April 24, 2020, was the initial termination date, subject to extension by either party if certain conditions were met. Boeing exercised its rights to terminate after Embraer did not satisfy the necessary conditions.

“Boeing has worked diligently over more than two years to finalize its transaction with Embraer. Over the past several months, we had productive but ultimately unsuccessful negotiations about unsatisfied MTA conditions. We all aimed to resolve those by the initial termination date, but it didn’t happen,” said Marc Allen, president of Embraer Partnership & Group Operations. “It is deeply disappointing. But we have reached a point where continued negotiation within the framework of the MTA is not going to resolve the outstanding issues.”

The planned partnership between Boeing and Embraer had received unconditional approval from all necessary regulatory authorities, with the exception of the European Commission.

Boeing and Embraer will maintain their existing Master Teaming Agreement, originally signed in 2012 and expanded in 2016, to jointly market and support the C-390 Millennium military aircraft.

Reuters-Bloomberg: Boeing plans to cut 787 Dreamliner output, jobs

From Reuters:

Boeing Co is planning to cut 787 Dreamliner output by about half and announce job cuts in its first-quarter earnings report, Bloomberg news reported here on Thursday.

Read the full report.

Photo: Boeing.

Boeing activates airlift capabilities for first COVID-19 transport mission

Boeing made this announcement:

A Boeing-owned aircraft loads 540,000 medical-grade masks in China destined to New Hampshire. (Boeing photo)

Boeing on April 18 completed its first COVID-19 transport mission, using a 737-700 aircraft from its corporate fleet to bring personal protective equipment (PPE) from China to the United States. Working in partnership with FIRST® Robotics Founder Dean Kamen, the company transported 540,000 medical-grade face masks that will be delivered to healthcare professionals battling COVID-19 in New Hampshire.

Kamen, who has a longstanding relationship with Boeing through FIRST Robotics, is also a founder of DEKA Research and Development Corporation. He worked with DEKA to secure the face masks from manufacturers in China and turned to Boeing to facilitate their transport. DEKA is the importer of record for the delivery and provided the masks to New Hampshire for distribution to healthcare professionals in the state.

(Boeing photo)

“Another life-saving delivery of PPE has arrived in New Hampshire,” said Governor Chris Sununu. “Thanks to Dean Kamen for facilitating this deal, and to Boeing for donating the cost of this mission transport. The state will deliver these masks to the greatest areas of need across New Hampshire so those on the frontline have the necessary resources to fight COVID-19.”

“Boeing has been a long-time partner of FIRST Robotics and I’m proud that I can again partner with the Boeing team to meet the needs of our frontline healthcare professionals fighting COVID-19,” said Kamen. “Now more than ever, help from companies like Boeing is critical so we can continue to make sure protective equipment gets to the people who need it most.”

Boeing continues to support local communities and the heroic healthcare professionals working tirelessly to stop the spread of COVID-19. Additional airlift transport missions with the Boeing Dreamlifter and ecoDemonstrator are planned in the future. Boeing is coordinating closely with U.S. government officials on how to best assist areas with the greatest need.

“I want to personally thank Governor Sununu, the entire New Hampshire congressional delegation and Dean Kamen for their leadership in helping secure and distribute this much-needed personal protective equipment for our frontline healthcare workers and first responders here in New Hampshire,” said Dave Calhoun, Boeing president and CEO. “We are honored to have conducted today’s airlift mission and we look forward to providing continued support in the fight against this pandemic.”

Boeing to resume commercial airplanes production in Puget Sound

Boeing will resume all Commercial Airplanes production in a phased approach at its Puget Sound-region facilities next week, after suspending operations last month in response to the COVID-19 pandemic. At all of its sites, the company has taken extra precautions and instituted comprehensive procedures to keep people safe and fight the spread of COVID-19.

“The health and safety of our employees, their families and communities is our shared priority,” said Stan Deal, president and CEO of Boeing Commercial Airplanes and senior executive in the Pacific Northwest. “This phased approach ensures we have a reliable supply base, our personal protective equipment is readily available and we have all of the necessary safety measures in place to resume essential work for our customers.”

Approximately 27,000 people in the Puget Sound area will return to production of the 747, 767, 777 and 787 programs, supporting critical global transportation infrastructure, cargo services and national defense and security missions. The 737 program will resume working toward restarting production of the 737 MAX. Boeing South Carolina remains in a suspension of operations at this time. Earlier this week Boeing restarted mostly defense production operations in the region with approximately 2,500 people.

Employees in the Puget Sound for the 737, 747, 767 and 777 will return as early as third shift on April 20 with most returning to work by April 21. Employees for the 787 program will return as early as third shift April 23, with most returning to work by April 24.

The company’s practices reinforce enhanced cleaning, employee health and physical distancing in partnership with employees. Aligned with federal and state guidance, these practices include:

Staggered shift start times to reduce the flow of employees arriving and departing work
Visual controls such as floor markings and signage to create physical distance
Face coverings will be a requirement for employees at Boeing sites in Washington. Employees are strongly encouraged to bring in their own procedural mask or face covering; those who do not have a mask available will be provided with one.
Providing required personal protective equipment to employees working in areas where physical distancing cannot be maintained for an extended period
Asking employees to perform self-health checks before coming to work and to stay home if they are ill
Employee wellness checks at the beginning of every shift and voluntary temperature screening at many manufacturing locations
Contact tracing when an employee tests positive for COVID-19 to reduce risk to teammates
Continued virtual meetings and employees who can work from home will continue to do
Transportation and common areas adjusted for physical distancing
Hand-washing stations in high-traffic areas and additional cleaning supplies available

Enhanced measures will continue until conditions allow for a return to regular work and cleaning processes. Boeing will continue to monitor government guidance on COVID-19, assess impact on company operations and adjust plans as the situation evolves.

Reuters: Boeing making new 737 MAX software updates to address computer issue

From Reuters:

“Boeing Company said late on Tuesday it will make two new software updates to the 737 MAX’s flight control computer as it works to win regulatory approval to resume flights after the jet was grounded following two fatal crashes in five months.”

Read the full story.

Boeing to temporarily suspend 787 operations in South Carolina

Boeing will temporarily suspend all 787 operations at Boeing South Carolina (BSC) until further notice, starting at the end of second shift on Wednesday, April 8. This impacts the Airport Campus, Emergent Operations, Interiors Responsibility Center South Carolina and Propulsion South Carolina.

“It is our commitment to focus on the health and safety of our teammates while assessing the spread of the virus across the state, its impact on the reliability of our global supply chain and that ripple effect on the 787 program,” said Brad Zaback, vice president and general manager of the 787 Program and BSC site leader. “We are working in alignment with state and local government officials and public health officials to take actions that best protect our people.”

BSC teammates who can work remotely will continue to do so. Those who cannot work remotely will receive paid leave for 10 working days of the suspension, which is double the company policy. After 10 days, teammates will have the option to use a combination of available paid time off benefits or file for emergency state unemployment benefits. All benefits will continue as normal during the suspension of operations, regardless of how teammates choose to record their time. Pay practice details have been made available to all teammates.

During this time of suspension on the 787 program, Boeing will continue to conduct enhanced cleaning activities at the site and monitor the global supply chain as the situation evolves.

When the suspension is lifted, the 787 program will take an orderly approach to restarting production with a focus on safety, quality, integrity and meeting customer commitments.

Boeing extends temporary suspension of Puget Sound production operations

Boeing has made this announcement:

Boeing is extending the temporary suspension of production operations at all Puget Sound area and Moses Lake sites until further notice. These actions are being taken in light of the company’s continuing focus on the health and safety of employees, current assessment of the spread of COVID-19 in Washington state, the reliability of the supply chain and additional recommendations from government health authorities.

During the suspension, the company will continue to implement additional health and safety measures at its facilities to protect employees. These measures include new visual cues to encourage physical distancing, more frequent and thorough cleaning of work and common areas and staggering shift times to reduce the flow of employees arriving and departing work, among many other improvements.

“The health and safety of our employees, their families and our communities is our shared priority,” said Boeing Commercial Airplanes President and CEO Stan Deal. “We will take this time to continue to listen to our incredible team and assess applicable government direction, the spread of the coronavirus in the community and the reliability of our suppliers to ensure we are ready for a safe and orderly return to operations.”

The volunteers who have been supporting essential site and services work should continue to report to their assigned shifts. Puget Sound area and Moses Lake employees who can work from home should continue to do so.

As the suspension of operations continues, Boeing will monitor government guidance and actions on COVID-19 and associated impact on all company operations. Boeing sites that remain open are being monitored and assessed on a daily basis.

Boeing to temporarily suspend Puget Sound production operations

Boeing has announced a temporary suspension of production operations at its Puget Sound area facilities in light of the state of emergency in Washington state and the company’s continuous assessment of the accelerating spread of the coronavirus in the region. These actions are being taken to ensure the well-being of employees, their families and the local community, and will include an orderly shutdown consistent with the requirements of its customers.

Boeing plans to begin reducing production activity today and projects the suspension of such operations to begin on Wednesday, March 25, at sites across the Puget Sound area. The suspension of production operations will last 14 days, during which Boeing will continue to monitor government guidance and actions on COVID-19 and its associated impacts on all company operations. During this time, we will be conducting additional deep cleaning activities at impacted sites and establishing rigorous criteria for return to work.

“This necessary step protects our employees and the communities where they work and live,” said Boeing President and CEO Dave Calhoun. “We continue to work closely with public health officials, and we’re in contact with our customers, suppliers and other stakeholders who are affected by this temporary suspension. We regret the difficulty this will cause them, as well as our employees, but it’s vital to maintain health and safety for all those who support our products and services, and to assist in the national effort to combat the spread of COVID-19,” Calhoun added.

Production employees should continue to report for their assigned shifts today and will receive guidance on their role in the suspension shutdown process.

Puget Sound area-based employees who can work from home will continue to do so. Those who cannot work remotely will receive paid leave for the initial 10 working days of the suspension – double the company policy – which will provide coverage for the 14 calendar day suspension period.

“We will keep our employees, customers and supply chain top of mind as we continue to assess the evolving situation,” Calhoun said. “This is an unprecedented time for organizations and communities across the globe.”

When the suspension is lifted, Boeing will take an orderly approach to restarting production with a focus on safety, quality and meeting customer commitments. This will be a key step to enabling the aerospace sector to bridge to recovery.

Boeing is working to minimize this suspension’s impact on the company’s ability to deliver and support its defense and space programs, and ensure the readiness of our defense customers to perform their vital missions. Boeing will work closely with those customers in the coming days to develop plans that ensure customers are supported throughout this period. Critical distribution operations in support of airline, government, and maintenance, repair and overhaul (MRO) customers will continue.