Boeing And Airbus -- October 16, 2024

Locator: 48598MUSK.

Boeing: machinists still on strike and no meetings even scheduled. Boeing: an absolute debacle. Just a hair's breadth away from "junk status." Machinists strike is costing the company $1 billion / month. Strike at 33 days and will go into November.  Some feel there's no way the machinists will see their demands met with the current financial situation Boeing is in. Waiting for government bailout? BA market cap around $90 billion -- Buffett could write a check and buy the company.

Airbus: but look at this. Link here.

 This just blows me away. From the linked article:

Airbus is cutting up to 2,500 workers from its struggling defense and space division as the European aerospace giant battles with program delays, increased costs and competition from the likes of Elon Musk’s SpaceX.

The company on Wednesday said the cuts were part of a restructuring at the division, which makes satellites and spacecraft to jet fighters and drones. The cuts represent about 7% of the roughly 35,500 workers employed at the unit, according to its latest annual report.

The CEO could not make it plainer:

Airbus has struggled to improve the fortunes of its space and defense division for years against a backdrop of rapid technological advancements (SpaceX), limited government spending and growing competition from the likes of SpaceX in the market for satellites and spacecraft.

“A fast changing and very challenging business context…requires us to become faster, leaner and more competitive,” said Michael Schoellhorn, head of Airbus’s defense and space unit.

Airbus in 2023 took a 600 million euro, roughly $650 million, charge against the division. In July this year it booked a separate 989 million euro charge after reassessing the timelines and costs associated with a range of telecommunication, navigation and space observation programs (SpaceX).

Chief Executive Guillaume Faury said at the time that the company was contending with greater competition from “some disruptive new players, and in particular, one disruptive new player.” SpaceX.

Amazing.