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How the U.S. Messed Up Its New 5G Rollout: ‘It Wasn’t Our Finest Hour’

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Published: Sunday, 06 February 2022 12:28

Longstanding disagreements between federal agencies over potential risks to aircraft remained unresolved in the days leading to the 5G debut

The Biden and Trump administrations had years of warnings. But the government failed this week to avoid a collision between U.S. telecom companies and airlines over the rollout of new 5G cellular networks.

That failure, rooted in longstanding disagreements over potential risk and a lack of cooperation by U.S. regulators, led to a last-minute scramble that threatened the cancellation of thousands of flights and raised tensions between two powerful industries.

Since 2015, the Federal Aviation Administration has questioned whether decades-old aviation equipment would be disrupted by new cellular signals. The risk to aircraft from new 5G services has been dismissed by the telecom industry and its regulator.

Yet the FAA, still sifting through a flood of wireless-company data, was altering flight-safety instructions in the days leading up to the 5G rollout. Boeing Co. , meanwhile, began talking last weekend with users of its 777 jets about possibly halting flights into major U.S. airports ahead of the 5G debut. Along with questions about shifting FAA restrictions, that set off days of panicked calls among airline chiefs and White House officials, people familiar with the matter said.

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Boeing Adds $450 Million to Air-Taxi Effort

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Published: Monday, 31 January 2022 12:28

Wisk joint venture with Google co-founder Larry Page is developing pilotless electric aircraft

Boeing Co. said it is investing a further $450 million in its air-taxi joint venture with Google co-founder Larry Page, developing small, pilotless aircraft for short passenger hops in and around cities.

The company’s Silicon Valley-based Wisk venture joins an expanding crowd of electric air vehicles that have attracted billions of dollars in new funding over the past year. Some aim to start service by the middle of the decade, though those efforts hinge on an evolving regulatory framework to ensure passenger safety.

Rival plane makers Airbus SE and Embraer SA are developing their own electric air taxis, alongside other startups that have attracted interest and investment from airlines, private jet operators and aircraft leasing companies. The U.S. Air Force is also involved with developing flying taxis for military use.

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A Troubled Boeing Inches Closer to Takeoff

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Published: Thursday, 27 January 2022 17:27

The U.S. plane maker reported wider losses due to problems with its 787 Dreamliner, but also turned cash-flow positive for the first time since 2019

Deliveries of Boeing’s popular 787 Dreamliner slowed to a trickle last year due to a raft of factory defects.

Boeing’s glass still looks half empty, but there are signs of change.

On Wednesday, the plane maker said it lost $4 billion in the fourth quarter—half the size of the hit for the same period of 2020 but much larger than Wall Street analysts were forecasting. Even as Boeing overcame its problems with the 737 MAX, deliveries of the popular 787 Dreamliner slowed to a trickle last year due to a raft of factory defects. This forced the company to record a $3.5 billion charge for compensating customers, plus $285 million in abnormal production costs that are forecast to eventually add up to $2 billion. This is twice what was initially expected.

Yet the company also surprised analysts with a long-awaited milestone: For the first time since 2019, it had positive free cash flow. Boeing’s value in the futures market whipsawed as investors weren’t sure whether to interpret the results as good or bad overall, but they settled clearly on “bad” when the stock market opened.

For valuing aerospace stocks, free cash flow is often preferred to earnings themselves, because calculating the profitability of businesses that depend on hugely costly product launches can be more art than science. In Boeing’s case, extra 787 expenses are having an immediate impact on quarterly earnings, even though the company isn’t spending all the money right away. Cash probably gives a more accurate picture of the underlying business.

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Boeing Dreamliner Defects Bog Down Production

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Published: Monday, 13 December 2021 15:43

Plane maker further slows production as door-area issue proves difficult to address, delaying deliveries and complicating airlines’ plans

Boeing Co. has further slowed production of 787 Dreamliners as it addresses defects that are delaying deliveries of new jets and complicating airlines’ plans, people familiar with the matter said.

The plane maker is holding off completing the new wide-body jets at its North Charleston, S.C., factory as workers and engineers address problems related to areas surrounding passenger and cargo doors on aircraft already under construction, these people said.

The latest production slowdown began in recent days and could last a few weeks as Boeing seeks expertise from other aerospace manufacturers in addressing the door issue, some of these people said. In late October, Boeing disclosed it was producing about two Dreamliners a month, down from a planned monthly rate of five, to resolve production issues.

A string of production snafus has hampered Boeing’s ability to deliver new Dreamliners for much of the last year, fueling the manufacturer’s financial losses and making it difficult for airlines to build schedules for jets often used in international travel. The plane maker has faced increased scrutiny internally, by air-safety regulators and lawmakers after two of its 737 MAX jets crashed in 2018 and 2019, claiming 346 lives.

A Boeing spokeswoman said work continues at its Dreamliner factory and production “rates will continue to be dynamic” as the manufacturer focuses on resuming normal assembly, performs inspections and repairs finished aircraft awaiting delivery.

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