Mike Boyd: Boyd Group International President says that Boeing's upper management is the main reason for its continued problems

Boeing's upper management is being singled out as the main reason for its continued problems. 

The aerospace manufacturer's CEO is being questioned in the US Senate over safety issues and allegations the company has faced this year. 

Ex-employees allege the company has been cutting corners, hiding evidence from regulators, and skipping safety inspections. 

Aviation researcher Boyd Group International President Mike Boyd told Mike Hosking that Boeing has stopped investing in its planes. 

He says the problem is the upper management is more worried about the stock price than managing the company. 

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Episode Transcript

Speaker 1 (00:00):
Seventeen pass big day, maybe a day of reckoning for
Boeing as they hit the Hill in Washington to face
the law makers who want some answers around what's basically
a modern day corporate disaster. Boyd Group International leading aviation
research and consultancy Group President Mike Boyd's with us on
this morning to.

Speaker 2 (00:15):
You and good morning to you, sir.

Speaker 1 (00:17):
And how much of what we're seeing on the hill
today is about politics and imaging versus what say the
FAA can do in trying to fix Boeing? And does
Boeing actually get fixed?

Speaker 2 (00:28):
That's a good question. You're were looking at probably ninety
five percent politics and imaging. I mean, in a normal world,
which we don't live in, that Manna from Boeing should
be in jail or certainly not working. The fact he's
even there being tolerated is beyond me.

Speaker 1 (00:44):
What's your assessment of Boeing?

Speaker 2 (00:48):
Look, it's our number are in us, our number one exporters.
They have offices all over I mean Montana, places like that.
Did the jobs are important? The problem with bone is
it's been run by people that are more worried about
the stock price than they were about maybe managing the company,
and it's more than just building airplanes. After the current

(01:10):
models they have there, they've got no follow ons at all,
you know, so in five or ten years, Airbus will
be the only game in global town.

Speaker 1 (01:18):
Do you believe the whistle blows?

Speaker 2 (01:21):
Yeah? I do. I Look, these people give up their
lives for this. I mean literally in some cases. But
when you whistle blow, you know, you might be fifty
five years old, ready to retire, and you're giving up
the time with your family and your grandkids and everything else.
They're heroes. So yet they are finding things and happy
to be looked at, no questions. But there's too many
coming out of the woodwork right now. There are major

(01:44):
problems at Boeing and that means we need to take
a bulldozer to the front office at Boeing and clean
it out.

Speaker 1 (01:50):
So explain to me how this happens. Yes, you won
you know, you're worried about the shap price in your
bottom line. I get all of that, But at the
point where you don't get plane orders anymore and duals
fall off, that sort of destroys your entire argument. How
did that cross over that way?

Speaker 2 (02:06):
Well? Well, number one, they weren't they weren't paying attention
to the marketplace. Like I just said, I mean, you know,
I think they sold. They got four orders in May
for errowbody airplanes. You know, the real problem is they
don't have a product line that they've invested in. They've
done what Lockheed did, or our convert did, or other
companies have done over the years. They just haven't invested

(02:28):
in their product because they want immediate response return for
their shareholders. That's malfeasance and unfortunately I don't have an
answer to it. And right now they're very very deep.
As we say here at Yogurt.

Speaker 1 (02:41):
Yes they Mike appreciate very much. Boyd Group International's Mike
Boyd seven. For more from the Mic Hosking Breakfast, listen
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