How Much is this Strike Costing Boeing?

Tags: BA
20 Sep 3:45am
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What has the machinist's strike cost Boeing? According to a MarketWatch article, roughly $1.4 billion, or more, in sales - of today. The machinists' union is demanding improved pay and benefits, along with a larger voice in the company's outsourcing practices. Boeing (BA: View sentiment for BAsentiment, chart, options) stated that it has met part of the workers' demands, but it has to be able to outsource to secure future sales, particularly overseas. Roughly 90% of the company's current backlog comes from the overseas market.

Thanks to the strike, all of BA's commercial-plane production remains off-line, which has delayed deliveries to its airline, shipping, and leasing customers. The delay could also further postpone the unveiling of BA's much-anticipated 787 Dreamliner. BA could also get hit with fines stemming from late deliveries. The strike doesn't hit BA only, the firm's suppliers may now face layoffs as a result.


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