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Archive for the ‘Boeing’ tag

Boeing 787 software bug could cause crash

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Double Rainbow Over Boeing
Double Rainbow Over Boeing

Damn, that sounds like a pretty serious, life-threatening bug. If I were a stock trader, I’d be shorting Boeing right about yesterday…

The US air safety authority has issued a warning and maintenance order over a software bug that causes a complete electric shutdown of Boeing’s 787 and potentially “loss of control” of the aircraft.

In the latest of a long line of problems plaguing Boeing’s 787 Dreamliner, which saw the company’s fleet grounded over battery issues and concerns raised over possible hacking vulnerabilities, the new software bug was found in plane’s generator-control units.

The plane’s electrical generators fall into a failsafe mode if kept continuously powered on for 248 days. The 787 has four such main generator-control units that, if powered on at the same time, could fail simultaneously and cause a complete electrical shutdown.

“If the four main generator control units (associated with the engine-mounted generators) were powered up at the same time, after 248 days of continuous power, all four GCUs will go into failsafe mode at the same time, resulting in a loss of all AC electrical power regardless of flight phase.”

Should the electrical shutdown happen at a critical phase in flight such as take-off or landing, or while manoeuvring in the air, the loss of control could be catastrophic.

 

(click here to continue reading US aviation authority: Boeing 787 software bug could cause ‘loss of control’ | Technology | The Guardian.)

Written by Seth Anderson

May 1st, 2015 at 11:22 am

Posted in News-esque

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Boeing falls most since April After Cantor loss

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Double Rainbow Over Boeing
Double Rainbow Over Boeing

The most amusing headline we read the day after Eric Cantor (Smug R) lost his primary to the Tea Bagger, and Ayn Randian acolyte, David Brat, was this one. Poor, poor Boeing, lost one of their sugar daddies…

Boeing Co. (BA) fell the most in two months as U.S. House Majority Leader Eric Cantor’s defeat in a primary election threatens congressional reauthorization of low-cost lending that benefits the world’s largest planemaker.

Keeping alive the Export-Import Bank will be an “even more high-profile/challenging fight,” Chris Krueger, a senior policy analyst for Guggenheim Securities LLC, said today by e-mail. Boeing was the “biggest loser” besides Cantor in the Virginia Republican’s surprise loss yesterday, Krueger wrote.

Ex-Im arranges financing that helps foreign airlines buy jets, a service that Boeing said last month would support $10 billion of 2014 sales. As Congress debates reauthorization, House Financial Services Committee Chairman Jeb Hensarling of Texas is being promoted as a possible Cantor successor. He has said the U.S. should “exit the Ex-Im.”

(click here to continue reading Boeing Tumbles as Cantor Loss Clouds Ex-Im Bank’s Future – Bloomberg.)

Boeing - El Segundo
Boeing – El Segundo

So what exactly is the Export-Import Bank? The Wikipedia entry:

The Export-Import Bank of the United States (Ex-Im Bank) is the official export credit agency of the United States federal government. It was established in 1934 by an executive order, and made an independent agency in the Executive branch by Congress in 1945, for the purposes of financing and insuring foreign purchases of United States goods for customers unable or unwilling to accept credit risk. The mission of the Bank is to create and sustain U.S. jobs by financing sales of U.S. exports to international buyers. The Bank is chartered as a government corporation by the Congress of the United States; it was last chartered for a three-year term in 2012 which will expire in September 2014. Its Charter spells out the Bank’s authorities and limitations. Among them is the principle that Ex-Im Bank does not compete with private sector lenders, but rather provides financing for transactions that would otherwise not take place because commercial lenders are either unable or unwilling to accept the political or commercial risks inherent in the deal.

(click here to continue reading Export-Import Bank of the United States – Wikipedia, the free encyclopedia.)

Golden Plowshares
Golden Plowshares

Corporate welfare, in other words. Propping up the bottom line of the military-industrial complex, and other crony capital chores. Sure, after World War 2, the bank was perhaps justifiable, the Marshall Plan and all that. But in today’s economy? Why does Boeing, GE, Halliburton or ExxonMobil need special low-interest loans subsidized by US taxpayers, loans that are not available to the rest of the business world? Especially when so much of what the bank subsidizes is bad for the planet. 

Like:

The bank’s environmental policy is a disappointment because it would allow an increase in spending on coal and other technologies harmful to the environment, said Steve Kretzmann, who runs Washington-based Oil Change International, which seeks to curb government aid to fossil-fuel companies.

“It makes a mockery of the Obama administration’s supposed commitment to phase out fossil-fuel subsidies,” Kretzmann said in an interview.

The project in Papua New Guinea led by Irving, Texas-based Exxon has become a particular point of contention.

The pipeline’s construction will destroy pristine tropical forests, PacificEnvironment’s Norlen said in a submission to the lender in September.

Exxon “is the most profitable corporation on the planet,” Kretzmann said. “This is the last place that taxpayer support should be going.”

(click here to continue reading Obama’s Trade Goal Fights His Clean-Energy Plan (Update4) – Bloomberg.)

and:

President Barack Obama’s goals of boosting U.S. exports and combating climate change are colliding as the U.S. Export-Import Bank expands financing for oil, gas, mining and power-plant projects.

Bank-supported ventures approved in the year ended Sept. 30 will emit an estimated 17.9 million metric tons of carbon annually, more than triple the previous year and the most since the lender started releasing data in 2001, according to its annual reports. Among companies aided were General Electric Co. and Petroleos Mexicanos, Mexico’s state-owned oil business.

“Ex-Im is on a fossil-fuel binge,” said Doug Norlen, policy director at PacificEnvironment, an environmental advocacy group in San Francisco.

You Can't Bribe No one
You Can’t Bribe No one

We’re not alone in wondering why in our current economic climate, this corporate welfare bank continues to exist.

For instance, from those hippies at Forbes:

Nothing brings out the well-tailored lobbyists in Washington quite like a threat to corporate welfare.  With the Export-Import Bank’s legal authorization set to run out this year, the Chamber of Commerce recently led a Big Business march on Capitol Hill to protect what is known as Boeing’s Bank.  Over the last eight decades ExIm has provided over a half trillion dollars in credit, mostly to corporate titans.  Congress should close the Bank.

ExIm was created in 1934 to underwrite trade with the Soviet Union.  The agency piously claims not to provide subsidies since it charges fees and interest, but it exists only to offer business a better credit deal than is available in the marketplace.  The Bank uses its ability to borrow at government rates to provide loans, loan guarantees, working capital guarantees, and loan insurance.

The result is a bad deal for the rest of us.  For instance, ExIm is not free, as claimed.  Recently made self-financing, the agency has returned $1.6 billion to the Treasury since 2008.  However, economists Jason Delisle and Christopher Papagianis warned that the Bank’s “profits are almost surely an accounting illusion” because “the government’s official accounting rules effectively force budget analysts to understate the cost of loan programs like those managed by the Ex-Im Bank.”

In particular, the price of market risk is not included, even though doing so, explained the Congressional Budget Office, would provide “a more comprehensive measure of federal costs.”  Delisle and Papagianis figured ExIm’s real price to exceed $200 million annually.  Indeed, both the Government Accountability Office and ExIm Inspector General raised questions about the accuracy of the agency’s risk modeling.

Federal Reserve economist John H. Boyd took another approach, explaining:  “For an economic profit—that is, a real benefit to taxpayers—Eximbank’s income must exceed its recorded expenses plus its owners’ opportunity cost, a payment to taxpayers for investing their funds in this agency rather than somewhere else.”  If ExIm was private, he added, “one must suspect that its owners would have pulled out long ago in favor of a truly profitable enterprise.”  He figured the Bank’s real cost averaged around $200 million a year in the late 1970s but had increased to between $521 million and $653 million by 1980.  Given the recent explosion in Bank lending the corresponding expense today could be much higher.

(click here to continue reading Close the Export-Import Bank: Cut Federal Liabilities, Kill Corporate Welfare, Promote Free Trade – Forbes.)

Written by Seth Anderson

June 13th, 2014 at 10:42 am

NLRB drops complaint over Boeing

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Boeing Logo
Boeing HQ in Chicago’s West Loop

The National Labor Relations Board on Friday officially dropped its high-profile case challenging Boeing’s decision to open a nonunion aircraft manufacturing plant in South Carolina.

The board acted after the Machinists union approved a 4-year contract extension with Boeing earlier this week and agreed to withdraw its charge that the company violated federal labor laws. Lafe Solomon, the board’s acting general counsel, said he had always preferred a settlement. The agency settles about 90% of its cases. Under the deal, Boeing (BA) promised to build the new version of its 737 airplane in Washington state. The Machinists also agreed to drop allegations that Boeing opened the South Carolina plant in retaliation for past union strikes.

(click here to continue reading Labor board drops complaint over Boeing plant – USATODAY.com.)

 

Written by Seth Anderson

December 12th, 2011 at 9:07 am

Posted in Business

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Union Advocates Accuse GOP Of Interfering In Boeing Dispute

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Boeing Logo

The GOP wants the Obama administration to be Republicans, and negate the legal process. Not going to happen…

Labor allies are defending the White House from attacks by South Carolina Gov. NIkki Haley (R) and other Republican lawmakers over a union dispute with Boeing, accusing them of interfering with an independent federal agency.

At the Chamber of Commerce on Tuesday, Haley and other Republicans called on President Obama to condemn the independent National Labor Relations Board, which is tasked with enforcing labor laws, for suing Boeing over a production line in South Carolina that it says constitutes illegal retaliation against unionized Boeing workers in Washington State. Obama has no direct control over the agency, but does choose its members, and Republicans have sought to block appointments they consider too pro-labor.

Sen. Tom Harkin (D-IA), chairman of the Senate Health, Education, Labor and Pensions Committee, issued a statement accusing the GOP of an “overly dramatic response” to a “routine unfair labor practice charge.” He added that it was unfair to target the White House when it has no say in the NLRB’s lawsuit.

“That’s what this all comes down to: powerful corporate interests are pressuring public officials to interfere with an independent agency, rather than let justice run its course,” Harkin said. “And we should not tolerate this interference. Instead, we should turn our attention back to the issues that really matter to American families – how we can create jobs in Washington, South Carolina, Iowa, and across the country?”

(click here to continue reading Union Advocates Accuse GOP Of Interfering With Independent Labor Agency | TPMDC.)

And a little back-story on the dispute:

An ugly spat between a huge corporation, organized labor, the White House, and a Tea Party governor whose union-busting rhetoric would make Chris Christie blush, is becoming the next national flashpoint in this year’s ongoing war on unions.

The dispute centers around a planned Boeing airplane production line for its 787 Dreamliner in South Carolina using nonunion labor. The National Labor Relations Board issued a complaint earlier this month looking to halt operation of the new plant after members of the International Association of Machinists at Boeing’s Washington state production line claimed the decision to expand outside the state was retaliation for previous strikes. The NLRB is demanding that Boeing open a second production line in labor-friendly Washington state.

Boeing responded that because the corporation is not closing its Puget Sound plant, the retaliation claims are “legally frivolous.” Boeing recently issued a further statement claiming it would have opened its South Carolina line regardless of labor conditions in Washington state. The case will come before an administrative law judge in June and Boeing can appeal that decision in federal court if it doesn’t go its way.

Given that the NLRB languished under the Bush administration — at one point the AFL-CIO called for it to be shut down — the NLRB’s complaint represented a coming out party of sorts for the revamped agency.

 

(click here to continue reading South Carolina Emerges As Next Labor Flashpoint In Boeing Dispute | TPMDC.)

Written by Seth Anderson

May 11th, 2011 at 9:45 am

Posted in Business,politics

Tagged with ,