Amid Boeing Co.‘s BA ongoing CEO search, Stephanie Pope, the internal favorite for the position, has taken the spotlight at the Farnborough International Airshow.
What Happened: Pope, who currently heads Boeing’s commercial airplane unit, has been actively engaging with customers and journalists at the airshow, Bloomberg reported on Thursday. This move has been seen as an attempt to bolster her case for the top job at the embattled aerospace company.
Boeing is currently grappling with a series of crises, including financial instability, and trust issues with regulators and the public. The company’s board is under pressure to appoint a leader who can navigate these challenges.
Pope, 52, has been working to stabilize Boeing’s factory operations in Seattle, where the majority of the company’s manufacturing activities are based. She was appointed to lead the planemaking unit in March, coinciding with the announcement of current CEO Dave Calhoun‘s impending departure.
Despite her background in finance and relatively short tenure in manufacturing, Pope has been endorsed by Calhoun as his natural successor. Her proactive approach at the airshow, including meeting with customers to address their concerns about delayed aircraft deliveries, has been well-received.
"I'm impressed with her, I think she's a quick learner," said John Plueger, the CEO of Air Lease Corp.
"I'll restate that 24/7 I'm focused on the BCA recovery," Pope said. BCA is an acronym for Boeing's commercial airplane business. "That is my priority and that is my focus."
Pat Shanahan, CEO of Spirit AeroSystems Holdings Inc. SPR, and a former Boeing executive is a leading candidate as the planemaker looks to consolidate its former aerostructures division. According to the report, directors have been intently reviewing other external candidates as well.
Why It Matters: The Farnborough Airshow appearance comes at a crucial time for Boeing. Recently, Boeing resumed 737 MAX deliveries to China after a regulatory delay, marking a significant step in restoring its global operations. This comes after a prolonged halt due to a review of the batteries powering the cockpit voice recorder.
Boeing’s Commercial Market Outlook predicted a 3% increase in airplane deliveries over the next 20 years, estimating a need for nearly 44,000 new commercial airplanes by 2043. This forecast highlights the potential growth in the aviation sector, driven by emerging markets and single-aisle market demand.
However, Boeing also faces internal challenges. Last week, Washington state factory workers voted overwhelmingly in favor of a strike mandate, demanding a 40% raise during their first full negotiation with Boeing in 16 years. This mandate, with over 99% approval, underscores the workers’ determination but also adds pressure on the company’s management.
Price Action: Boeing stock closed at $184.35 on Thursday, up 2.38% for the day. In pre-market trading, the stock rose 0.46%. However, the stock is down $67.41, or 26.78%, year to date, according to data from Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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