>> WELCOME BACK JENNA BUSINESS
EVERYONE WELL DENNIS MUILENBURG
IS OUT.
THE MODEL WAS GROUNDED
WORLDWIDE FOLLOWING 2 FATAL
CRASHES WITH FAIL.
TO SAFETY. WAHLBERG ASCENDED TO
THE TOP JOB IN 2015 AND LED THE
COMPANY TO RECORD.
WITH US NOW TO DISCUSS THIS
KILLED SILVER ADDED.
CALEB GREAT TO HAVE YOU HERE
WITH US TODAY, LET'S START WITH
THE LETTER. THE NEW CEO DAVID
CALHOUN.
>> WELL OKAY WHO IS NO
STRANGER TO BOEING HE'S BEEN ON
THE BOARD FOR 10 YEARS. HE'S
HAD A FRONT ROW SEAT TO THIS
CRISIS HAS BEEN INVOLVED IN THE
7.37 MAX.
HE'S NOT AN ENGINEER SO THAT'S
SOMETHING WE SHOULD KNOW, BUT I
DON'T THINK IT MATTERS RIGHT
NOW THE
COMPANY NEEDS A PUBLIC
RELATIONS LEADER AND SOMEBODY
WHO CAN ASSURE SHAREHOLDERS AND
EMPLOYEES
CUSTOMERS ANOTHER AND
REGULATORS THAT THE COMPANY IS
ON FIRM GROUND AND SO THAT'S
HIS JOB RIGHT NOW BUT HE'S GOT
AROUND GOING FOR ABOUT A
DECADE.
>> BECAUSE MONDAY OF LAST
WEEK RIGHT WE LEARNED OF THE
PRODUCTION HALT ON THE 7.37 MAX
FRIDAY, WE HAD THE
DISAPPOINTING
STARLINER MISSION. BOTH OF
THOSE THINGS YOU THINK THEY
LEAD TO THE ULTIMATE OUSTER
COME MONDAY OF
THIS WEEK.
>> I THINK THAT AND THERE'S
BEEN A JUST DRUMBEAT OF BAD
NEWS AND A LOT OF
WHISTLEBLOWER REPORTS FROM SOME
VERY HIGH OF ENGINEERS AT
BOEING THAT SAID I WOULD NEVER
FLY THIS PLANE MYSELF I WOULD
NEVER FLY IN THIS PLAY
MYSELF SO THAT'S A LOT OF BAD
NEWS PLUS WHEN YOU GET THESE
KINDS OF ANNOUNCEMENTS THAT I'M
SO CLOSE TO
EACH OTHER RIGHT AS IT TOWARD
THE END OF THE YEAR AND THAT
JUST SHOWS THAT THE COMPANY
DOES NOT HAVE A HANDLE ON
THE CRISIS AND SHAREHOLDERS
BOARD MEMBERS AND OTHERS ARE
JUST NOT HAVING ANY MORE COULD
NOT HAVE IT ANYMORE.
AND WHAT YOU REACH THAT POINT
YOU HAVE TO MAKE THE MOVE THEY
MADE THE MOVE WITH SOMEBODY SAY
CALHOUN HE'S BEEN A G WAS A
JEEP 20 YEARS VERY INVOLVED
WITH
THEIR ACTIVISION IT WAS
INVOLVING JOIN THAT DIVISION
RIGHT BEFORE THE SEPTEMBER 11
ATTACKS OF THE MAN KNOWS HOW TO
DEAL WITH CRISIS,
ESPECIALLY THE LONG-TERM
INFECTION COMPANIES LIKE BOEING
OR G E.
>> HE MENTIONS THIS TRICKY
SITUATION BOUNCING APPEALING
TO.
>> HOLDERS
BOARD MEMBERS, TRAVELERS
CUSTOMERS
ALSO REGULATORS. GIVEN HIS
EXPERIENCE COUPLES EXPERIENCE
WITH GE DO HAVE CONFIDENCE THAT
HE WILL BE ABLE TO PIECE ALL OF
THESE ENTITIES ALL THESE
BODIES.
>> WELL IT'S IMPOSSIBLE TO MAKE
EVERYBODY HAPPY ALL THE TIME
BUT RIGHT NOW THEY'RE IN CRISIS
MODE AND DIG OUT MODE SO HE'S
GOT TO ATTACK ONE PROBLEM AT A
TIME. I THINK THAT YOU KNOW YOU
HAVE THE
COMPANY THE SHAREHOLDERS THAT'S
AN ISSUE THE STOCK'S UP 5% THIS
YEAR. BUT THE BROADER MARKET IS
UP FROM 28% LET'S SET THAT
ASIDE FOR
A SECOND. IT HAS CUSTOMERS
MAINLY IT'S BIG BECAUSE
AIRLINES AND WORLD WHO HAD THE
HALL THEIR
THE 7.37 MAX AND THAT IT'S
THEIR REVENUE AND THAT HURTS
THEM IN THE LONG RUN GOT THE
BIGGEST CUSTOMER SO HE'S GOT A
DEAL WITH THE CUSTOMERS FIRST
RIGHT NOW, HE'S GOT TO DEAL
WITH REGULATORS TO MAKE SURE
THEY HAVE A TIGHT SCHEDULE TO
GET THE PLANES
BACK IN THE AIR BACKED SHIPPING
TO TO THE BIGGEST CUSTOMER AND
THEN HE'S GOT TO DEAL WITH FIRE
CONSUMERS WHO ARE STILL
SCRATCHING THEIR HEAD WONDERING
IS THIS A SAFE PLANE. THE
PEOPLE THAT MADE THE PLANES AND
THEY WOULDN'T FIND THEMSELVES
SO HE'S GOT A LOT OF CHALLENGES
BUT YOU GOT TO GO ONE AT A TIME
FOR US.
>> SO EVEN THOUGH MOLIN BEARCAT
COULD NOT SUCCESSFULLY STEER
THE COMPANY THROUGH A CRISIS.
HE IS REPORTEDLY ACCORDING TO
SEC LEADING WITH AT LEAST
$30 MILLION SEVERANCE PACKAGE
ACT CALLEBS, YOU THINK HE
DESERVES THAT.
>> WELL THESE GOLDEN PARACHUTES
AND IT'S A TERRIBLE METAPHOR
WE'RE TALKING ABOUT PLANES BUT
THESE ARE STANDARD FOR THE
INDUSTRY AND YOU DON'T GET.
TOP OF THE CEOS WITHOUT GIVING
THEM THAT KIND OF PACKAGE AND
WHEN YOU CUT THEIR CONTRACTOR,
YOU FIRE THEM OR
THEY RETIRE, ACCORDING TO THE
PRESS RELEASE UNEXPECTED.
THEY'RE GOING TO GET PAID ALSO
WORTH NOTING THAT MUELLER WAS
THE TOP INDIVIDUAL SHAREHOLDER
AT BOEING UNTIL YESTERDAY.
I DON'T KNOW WHAT HAPPENS NOW
WITH THE SHOWERS I'M SURE SOME
OF THAT COMPENSATION WILL BE IN
THE SHARE THAT HE OWNS.
BUT IT'S NO SURPRISE THAT CEOS
GET PAID ON THE WAY OUT AND ON
THE WAY IN AND WE SHOULDN'T BE
SURPRISED BY THAT
AT ALL.
>> DESPITE BOEING'S WOES THE
SHARE PRICE HAS NOT DONE
TERRIBLY ITS OF COURSE OFF WELL
OFF OF THEIR
52 WEEK HIGH. I'M A FOREIGNER
$46 THE STOCK IS STILL UP 10%
OVER THE LAST YEAR STILL WELL
BELOW THE BROADER MARKET
PERFORMANCE. BUT WHY EVERYTHING
BEEN SHARES HAVEN'T TAKEN EVEN
MORE.
>> WELL BOEING IS A CORE
HOLDING AND IF YOU LOOK AT
THE INSTANT 2 HOLDING THE
SHAREHOLDERS, A BALL AND WE'RE
TALKING ABOUT THE BIGGEST
MUTUAL FUNDS IN THE WORLD I
JUST LOOK AT THE TOP
5 REAL QUICK. THAT WAS OUR HERO
PRICE BLACKROCK AIRPORT TRUST,
A STREET ADVISORS IS THE
BIGGEST FUND FAMILIES IN
THE WORLD AND JUST THAT
GROUPING WRITE THEIR OWN
35%. THE SHARES OUTSTANDING SO
IT'S GOT A BIG INSTITUTIONAL
SHAREHOLDER BASE. IT'S GOT A
LOT OF EMPLOYEES AND
FORMER EMPLOYEES THAT OWN THE
STOCK TO CANCEL THEIR WHOLE
LIVES ARE TIED UP AND SO IT'S
ONE OF THOSE CORE HOLDINGS OF
PEOPLE HAVE TO HAVE
THAT'S A COMPONENT AS WELL FOR
THE DOW, SO IT'S GOING TO BE
ALL THE INDEX FUNDS. THAT'S WHY
YOU HAVEN'T SEEN A BIGGER
SLIPPER, THIS IS A WIDELY
OWN STOP BY BOTH INSTITUTIONS
AND INDIVIDUALS RETIREES
EMPLOYEES OF BOEING PENSIONERS
SO GRACO IT'S NOT GOING TO FALL
THAT FAR IT'S NOT GOING TO RISE
THAT I FOR THOSE REASONS.
>> HENSHALL CONTAGION EFFECT
HERE RIGHT THROUGH THE ECONOMY.
NOT ONLY HERE IN THE US, BUT
GLOBALLY.
>> RIGHT SO THERE ARE PEOPLE
TALKING ABOUT HOW MUCH IT COULD
SHAVE OFF A G D P R TO SAY
WHETHER OR NOT THAT THAT WILL
ACTUALLY MANIFEST IT DEPENDS ON
WHEN WHEN BOEING GET THOSE
PLANES BACK UP TO ITS
CUSTOMERS. BUT THE BIGGEST IT'S
GOING TO COME FROM ITS
CUSTOMERS THE UNITED TO THE
WORLD, THE AMERICANS. AIRLINES
OF
THE WORLD WHO HAVE THESE BIG
FLEET THEY'VE BEEN COUNTING ON
THIS PLANE AND THEY HAVE TO
CHANGE THEIR SCHEDULES AND THEY
HAD TO TAKE REVENUE HIT TO
THEMSELVES
SO THAT HURT AIRLINES AND THEIR
REVENUE FORECAST GOING FORWARD
AND POTENTIALLY THEIR
PROFITABILITY THAT OBVIOUSLY AS
A DOMINO
EFFECT OTHER INDUSTRIES THAT WE
SEE A AIRLINES STARTING TO SELL
OFF. SO WE COULD SEE A BROADER
RIPPLE EFFECT OF THE MARKET IN
THAT CAPACITY IN TERMS OF
MANUFACTURING BONES GOING TO DO
EVERYTHING IT CAN GET THESE
PLANES BACK ON THE LINE AND
BACK OUT TO THE CUSTOMERS THAT
WOULD PUT PEOPLE BACK TO WORK I
DON'T THING THE TO BE CONTINUED
HE WILL BE A SEVERE SOME
PREDICT. I THINK THE BIGGER
THING TO WATCH IS WHAT HAPPENS
THE DOMINO EFFECT THROUGH THE
ECOSYSTEM, THE
SUPPLY CHAIN.
AIRCRAFT AIRPLANE MANUFACTURING
FOR CONSUMERS WE FLY ON THE