Boeing’s New Strategy: Furlough First, Negotiate Later

Good morning! Did you know that during the Cold War, the Air Force enlisted civilian volunteers as part of the Ground Observer Corps to watch for potential Soviet bombers? Known as skywatchers, these volunteers, armed with binoculars and aircraft identification guides, stood watches to report unidentified aircraft sightings, which could lead to scrambling jets for interception. In Montana, where the open landscape was deemed a likely air attack route, nearly 12,000 volunteers participated, including housewives and teenagers. However by 1959, advancements in radar made the program obsolete. I only just learned about this from an inconspicuous sign I discovered at a highway rest area over the weekend — now passing this knowledge on to you 🛩️

-Rob Roy

In today’s email:

• The Boeing Saga Continues

• Around the Skies: Garmin G5000 flight deck upgrade, Wyoming Lake now open for seaplane training, B-29 returning to Air Museum, Volato facing a class-action lawsuit, Textron Aviation's union members go on strike

• PilotTube: Carbon Cub FX Builder Assist Program

THE BUSINESS OF AVIATION

Planes on Pause: Boeing’s Strike Takes Off in Full Force

Boeing is navigating some serious turbulence as 33,000 union workers have gone on strike, forcing a major halt in commercial plane production. CEO Kelly Ortberg is trying to cut costs by furloughing executives and reducing paychecks, though let’s be real, trimming executive salaries might not exactly win over the picket line. Workers are standing firm, frustrated by pension cuts and stagnant wages, while mediation efforts seem to be going nowhere fast. Boeing’s efforts to smooth things over so far? Let’s just say the union isn't buying what they’re selling.

To make matters worse, Ted Colbert, the head of Boeing’s Defense, Space & Security division, has exited stage left after a rocky two years. Colbert’s division, which accounts for 40% of Boeing’s revenue, has been dealing with delays and rising costs, so his departure only adds to the company’s mounting challenges. With Colbert out, Boeing is left juggling leadership changes at a time when they can least afford any more instability — both financially and operationally.

On top of that, Boeing is still reeling from the fallout of the 737 Max crashes, not to mention its $6 billion debt burden. The company faces legal disputes, internal tensions and a workforce that’s not exactly in the mood to compromise. If Boeing wants to regain stability, it’s going to take more than just cutting costs. They’ll need to rethink their strategy, address the needs of their workers and rebuild trust across the board.

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AROUND THE SKIES

🛩️ Garmin has secured certification for its G5000 integrated flight deck upgrade for Cessna Citation XLS+ and XLS Gen2 jets, offering pilots enhanced situational awareness and safety features. With new touchscreen displays, synthetic vision technology and advanced traffic monitoring systems, this retrofit keeps legacy jets flying with the latest tech, ensuring operational efficiency and improved safety for years to come.

🛩️ Wyoming’s Lake De Smet is now open for single engine seaplane training, thanks to the efforts of the Seaplane Pilots Association and local advocates. Pilots can now earn their SES rating on the lake, with access available to both local and non-local aircraft. The initiative includes measures to prevent the spread of invasive species, ensuring the continued availability of this scenic training spot.

🛩️ The iconic B-29 Superfortress "Doc" will be returning to Yanks Air Museum in Chino, California, from October 9-13 as part of the B-29 Doc History Restored Tour. Aviation enthusiasts can tour the aircraft, explore its cockpit and even experience a B-29 flight, one of only two remaining airworthy B-29s in the world.

🛩️ Volato is facing a class-action lawsuit after laying off 233 employees without the required 60 days' notice, allegedly violating the WARN Act. The lawsuit comes shortly after Honda Aircraft terminated Volato's fleet purchase agreement for 23 HondaJets, adding to the company’s financial woes. With a reported net loss of $34.3 million in the first half of 2024 and stock prices plummeting, FlyExclusive has taken over management of Volato’s HondaJet and Gulfstream fleet operations.

🛩️ Textron Aviation's machinist union members have gone on strike after rejecting the company’s latest contract proposal, which included a 26% wage increase over four years. The strike involves about 5,000 workers and follows a similar labor action by machinists at Boeing earlier this month. Textron estimates that the strike could impact up to 15 jet deliveries and cost the company $35 million in profits for every month it continues.

PilotTube

This video shows how the CubCrafters' FX program (Factory eXperimental) turns the familiar "builder assist" convention upside down. Instead of assisting in the assembly of parts from a kit, CubCrafters' technicians facilitate the builders' fabrication of the parts themselves.

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