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The Wire
3 days ago
- Business
- The Wire
Quality Concerns in Dreamliners That Boeing Sold to Air India Had Given a Manager Nightmares
This report first appeared on The American Prospect and was republished with permission. Read the original here. Sign up for the Prospect's newsletter here. For 15 years now, engineers and quality control specialists have implored regulators, journalists and airlines to take a closer look at the 787 Dreamliner, Boeing's first and only clean-sheet commercial airplane designed from scratch since the company's horrific 1997 merger with McDonnell Douglas. The smooth surface of the lightweight composite fibres used to construct the airframe can conceal deadly structural flaws, they warned. The non-union workforce that manufactures the jets in South Carolina is unqualified to stand up to 'good old boy' bosses constantly pressuring them to ignore obvious nonconformities, install malfunctioning parts and cut every corner imaginable to get planes out the door, they asserted. Unsavoury subcontractors have exploited Boeing's lax standards to litter the assembly line with fake parts, they until today, the contrarians could always demand to know: if the Dreamliner is so unsafe, why hasn't it ever crashed?The late John Barnett, who died last March in an apparent suicide two days into a three-day deposition stemming from the insane practices he witnessed and tried vainly to stop as a quality manager at the Dreamliner's final assembly plant in Charleston, South Carolina, had a ready answer for this question: Just wait a bit. Most planes aren't designed to dive nosefirst into the ground like the 737 Max. It generally takes, he'd say with audible sadness, ten or twelve years for assembly-line sloppiness to culminate in a plane crash. (Barnett personally drove everywhere in the orange truck in which he died.)More from Maureen TkacikIt's too early to know exactly what caused the bizarre crash of Air India 171 in Ahmedabad, a western India city of 5.6 million people, just seconds into what was supposed to be a 10-hour flight to London. The pilot reportedly cried 'engine failure' in a mayday call to air traffic controllers seconds before the crash into a guest house for doctors, and footage of the plane, which slowly sank with its nose upturned in takeoff position, suggests a sudden loss of power. The 787 Dreamliner has been plagued by engine problems partially caused by the abundance of so-called 'foreign object debris' Boeing assembly line workers chronically leave on aircraft components in their haste to move to the next far, Boeing has only said they were 'working to gather more information' on the crash. Air India has confirmed that 241 of the 242 passengers aboard have died, with the lone survivor being treated in a nearby was demoted and ostracised after he attempted to force workers to disassemble and clean wire bundles and electrical boxes that had been littered with metal scraps of floorboard fasteners, scraps he knew could cause the electrical systems to short-circuit. Another former quality manager I know was fired after refusing to sign off on improperly-tied wire bundles littered with foreign object debris that had already begun to fray. FOD was implicated in a massive engine fire aboard a 787 test flight in 2010, and another test flight in Charleston in 2016 that Boeing was so keen to sweep under the rug it appealed to the Supreme Court rather than allow employee-witnesses to be deposed. (That case was settled before the Supreme Court made a decision.)A now-defunct Norwegian airline claimed in a 2020 lawsuit blaming Boeing for its demise that it had been forced to divert flights and cancel whole routes due to engine problems, and replace the engines on its Dreamliner fleet hundreds of times. In 2023 one of the airline's former 787s was dismantled for scrap, a literally unheard-of fate for a 10-year-old plane with a nine-figure list there's something else: two people deeply familiar with the Charleston 787 plant told the Prospect they had particularly acute quality concerns over planes that were delivered to Air Kitchens, a former quality manager who worked at the Charleston plant between 2009 and 2016, has a binder full of notes, documents and photos from her frustrating years at Boeing, one page of which lists the numbers of the eleven planes delivered between early 2012 and late 2013 whose quality defects most kept her awake at night. Six of them went to Air India, whose purchases were bolstered by billions of dollars in Export-Import Bank loan guarantees. The plane that crashed was delivered in January 2014 from Boeing's now-defunct assembly line in Everett, Washington, though its mid- and aft- fuselages were produced in it happens, that particular plane was delivered not long after a camera crew from Al-Jazeera showed up in Charleston to investigate the horror stories its reporters had been hearing about the workmanship and corporate culture of the plant. The channel's journalists had started digging into the plane's quality standards a year earlier, when the FAA grounded the planes for a few months after two small battery fires broke out on Japanese planes over the course of three days. Their findings were alarming: the company had outsourced most of the non-conceptual design of the plane to its suppliers, the FAA had fast-tracked the batteries and a host of other novel features aboard the planes without anything approaching the rigorous testing they had required for earlier planes, a major battery supplier's testing lab suffered a massive explosion whose precise cause had never been determined and an engineer had been fired for refusing to 'dumb down' his instructions for repairing flaws in the lightweight composite structures Boeing used to build the plane's most harrowing, however, was the footage filmed by an assembly line worker who wore a hidden camera as went about his day chatting up colleagues, virtually all of whom said they would never allow their family members to fly one of the planes the factory was was on medical leave with cancer when the footage was filmed, but the documentary premiered shortly after she returned, and leadership convened a meeting to encourage managers to snitch on anyone they recognized from the undercover footage.'I raised my hand and said, 'No one who works in this factory wants to fly these planes, I mean, that's just the truth,'' Kitchens said. A woman she didn't know, who was wearing a bomber jacket emblazoned with the FAA logo, shot her a scowl. But it was hardly the first time she'd expressed anxiety over the planes' safety with upper management. Years earlier, she had asked a boss if he would let his children fly on a plane with the litany of flaws and non-conformances he was urging her to 'pencil-whip': 'Cindy, none of these planes are staying in America, they're all going overseas,' he retorted, much to her investigator who worked on the documentary told the Prospect that employees he interviewed were especially anxious about three planes they had worked on that were scheduled to be delivered to Air India during the first months of 2014. The planes all had serious flaws that required them to be flown to the union assembly line in Everett to be re-worked. The Air India Dreamliner that crashed today took off from the Everett airport en route to Delhi for the first time on January 31, Tkacik is investigations editor at the Prospect and a senior fellow at the American Economic Liberties Project.
Mint
12-06-2025
- Business
- Mint
India's gender gap widens as it drops to 131st spot in Global Gender Gap Index 2025
India has been ranked 131 out of 148 countries in the World Economic Forum's Global Gender Gap Report 2025, slipping two places from its position last year. PTI reported that India's gender parity score stands at just 64.1 per cent, placing it among the lowest-ranked countries in the South Asian region, according to the report released on Thursday. In the 2024 edition of the report, India was ranked 129. The gender-parity score is a measure used to assess the relative equality or disparity between males and females in a particular region. According to PTI, the Global Gender Gap Index evaluates gender parity across four key dimensions: economic participation and Opportunity, Educational Attainment, Health and Survival, and Political Empowerment. The Indian economy's overall performance showed a slight improvement in absolute terms, rising by 0.3 points. PTI reported that 'one dimension where India increases parity is in Economic Participation and Opportunity, where its score improves by 0.9 per cent to 40.7 per cent. While most indicator values remain the same, parity in estimated earned income rises from 28.6 per cent to 29.9 per cent, positively impacting the subindex score.' Labour force participation parity remained the same as last year at 45.9 per cent, India's highest achieved to date. In the dimension of educational attainment, India scored 97.1 per cent, reflecting improvements in female literacy and tertiary education enrolment. These gains positively influenced the subindex score. India also records higher parity in health and survival, driven by improved scores in sex ratio at birth and in healthy life expectancy. However, the report noted that this parity was achieved despite a reduction in overall life expectancy in both men and women. India recorded a slight drop in political empowerment, with parity dropping by 0.6 points since the previous edition. Female representation in Parliament fell from 14.7 per cent to 13.8 per cent in 2025, bringing the indicator score below 2023 levels for the second consecutive year. Similarly, the share of women in ministerial positions fell from 6.5 per cent to 5.6 per cent, bringing the indicator score further from its peak of 30 per cent recorded in 2019, PTI reported. Among South Asian countries, Bangladesh emerged as the best performer, jumping 75 ranks to reach the 24th position globally. The report said the global gender gap has closed to 68.8 per cent, marking the strongest annual advancement since the COVID-19 pandemic, reported PTI. Iceland continues to top the index for the 16th year running, followed by Finland, Norway, the United Kingdom and New Zealand. PTI also reported that the progress made in the 19th edition of the report was driven primarily by steady progress in political empowerment and economic participation, while educational attainment and health and survival maintained the near-parity levels. However, despite women representing 41.2 per cent of the global workforce, a stark leadership gap persists, with women holding only 28.8 per cent of top leadership positions, the report said. 'At a time of heightened global economic uncertainty and a low growth outlook combined with technological and demographic change, advancing gender parity represents a key force for economic renewal,' Saadia Zahidi, Managing Director, World Economic Forum, told PTI. 'The evidence is clear. Economies that have made decisive progress towards parity are positioning themselves for stronger, more innovative and more resilient economic progress,' Zahidi said.
Yahoo
04-06-2025
- Business
- Yahoo
FTRE Q1 CY2025 Earnings Call: Revenue Miss, Adjusted Profit Beat, and CEO Transition
Clinical research company Fortrea Holdings (NASDAQ:FTRE) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 1.6% year on year to $651.3 million. Its non-GAAP profit of $0.02 per share was significantly above analysts' consensus estimates. Is now the time to buy FTRE? Find out in our full research report (it's free). Revenue: $651.3 million (1.6% year-on-year decline) Adjusted EPS: $0.02 vs analyst estimates of -$0.07 (significant beat) Adjusted Operating Income: $16.43 million vs analyst estimates of $12.79 million (2.5% margin, 28.5% beat) EBITDA guidance for the full year is $185 million at the midpoint, above analyst estimates of $172.7 million Operating Margin: -79.9%, down from -5.6% in the same quarter last year Market Capitalization: $419.2 million Fortrea's first quarter results were shaped by ongoing transformation efforts and the lingering effects of late-stage clinical service bookings prior to the company's spin-off. CEO Tom Pike attributed the modest revenue decline to a project mix weighted toward longer-duration oncology studies and delays in biotech project startups. Management also pointed to improved operational execution following the divestiture of the Enabling Services business and the exit from transition service agreements. CFO Jill McConnell highlighted that direct personnel costs were reduced significantly through an 8% reduction in permanent headcount, helping offset some revenue softness. However, general and administrative expenses increased due to investments needed to support Fortrea as a standalone public company. Looking ahead, Fortrea's leadership is focused on returning to revenue growth and expanding margins amid a challenging funding environment for biotech customers. Management reaffirmed annual guidance and expects that operating cash flow will improve as invoicing disruptions from the ERP system transition resolve. Interim CEO Peter Neupert, succeeding Tom Pike as part of a planned leadership transition, emphasized the company's commitment to cost optimization and operational efficiency. Jill McConnell noted that ongoing margin improvement will depend on capturing targeted cost reductions and accelerating project burn rates, particularly in biotech and oncology. Management cautioned that macroeconomic and policy uncertainties, as well as delays in customer decision-making, could impact the pace of new business wins. Management attributed the softer revenue to project mix and slower biotech decision-making, while emphasizing progress on cost controls and operational independence post-spin. Oncology Project Mix Impact: The company's revenue burn rate was affected by a portfolio heavily weighted toward oncology trials, which typically progress more slowly due to study complexity, longer durations, and recruitment challenges. Biotech Startup Delays: Decision-making delays among biotech clients, driven by funding uncertainties and a more cautious regulatory environment, contributed to slower project initiations. Management noted these delays have not resulted in cancellations but have extended proposal timeframes. Operational Independence Achieved: Following the exit from transition service agreements tied to its former parent, Fortrea completed significant IT and personnel restructuring. The company reduced permanent headcount by 8% year over year and consolidated its systems and office footprint, supporting early cost savings. Cost Reduction Initiatives: Management detailed $150 million in targeted gross cost reductions for 2025, focusing on both operations and SG&A (selling, general, and administrative expenses). Early progress includes reduced IT spend, a streamlined application portfolio, and facility optimizations. AI and Technology Investments: Fortrea is deploying artificial intelligence tools, including Microsoft Copilot, to enhance productivity in areas such as protocol reviews and commercial workflows. These initiatives are expected to improve efficiency and reduce costs, though management acknowledged that human oversight remains essential due to regulatory requirements. Fortrea's outlook hinges on cost discipline, pipeline execution, and customer funding dynamics, particularly in biotech and oncology segments. Margin Expansion Focus: Management expects that margin gains will be driven by the realization of targeted cost reductions, including further SG&A optimization and increased project burn rates. The timing of savings is weighted toward the second half of the year as restructuring and automation initiatives reach full impact. Biotech Market Uncertainty: The company's ability to restart revenue growth depends on timely customer decision-making and improved funding access for biotech clients. Management cited a growing pipeline, but delays in biotech project starts remain a key risk to near-term growth. Competitive Pricing and Project Mix: Fortrea aims to maintain pricing discipline in a competitive environment, especially as larger contract research organizations (CROs) increase their focus on biotech. The current portfolio's mix of longer-duration and late-stage projects, particularly in oncology, is expected to moderate the pace of backlog conversion and revenue recognition. Looking forward, key items to watch include (1) the pace of new project starts, particularly in biotech and oncology; (2) the company's ability to realize its targeted cost reductions and improve SG&A efficiency; and (3) stabilization of cash flow and reduction of days sales outstanding following the ERP transition. Execution on commercial pipeline conversion and further technology-driven productivity gains will also be key markers of progress. Fortrea currently trades at a forward P/E ratio of 9×. At this valuation, is it a buy or sell post earnings? The answer lies in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Politics
- Yahoo
Western Massachusetts population drops as state numbers rise
CHICOPEE, Mass. (WWLP) – New state census data is showing most cities and towns have grown in population over the past year, but that's not necessarily true for communities here in western Massachusetts. List of Massachusetts agencies impacted by federal funding cuts by Trump Administration The estimates show that about four in five Bay State cities and towns had more residents on July 1, 2024, than a year earlier, fueling a nearly one percent statewide population growth. Most of the communities that lost population are here in western Massachusetts. Most of western Massachusetts is in orange, which means population decreased, alongside the blue increases in the eastern part of the state. It's mostly affecting Franklin, Hampshire, and Berkshire counties. While most of these communities are so small, the difference is just a few people, it's still an alarming trend. All of the towns and cities in Hampden County did go up. The town of Pelham in Hampshire County seems to be an outlier. It had a population increase of 5.6 percent, but in a town of just over 1,300, that's an increase of just 71 people. Data shows thousands of people continue to leave Massachusetts for other states, but incoming immigrants have made up for it. The UMass Donahue Institute said the Bay State experienced its largest annual population increase in 60 years from 2023-2024. WWLP-22News, an NBC affiliate, began broadcasting in March 1953 to provide local news, network, syndicated, and local programming to western Massachusetts. Watch the 22News Digital Edition weekdays at 4 p.m. on Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Hindustan Times
15-05-2025
- Business
- Hindustan Times
Wholesale inflation at 13-month low
India's wholesale inflation, as measured by the Wholesale Price Index (WPI), fell to the lowest in 13-months at 0.9% in April, a sharp fall from 2.1% in March, according to data released by the Ministry of Commerce and Industry on Wednesday. On a month-on-month basis, the WPI contracted by 0.2%, making it the sixth consecutive month that the index has sequentially contracted. April's WPI print was lower than a projection of 1.5% by a Bloomberg poll of economists. A disaggregated analysis of the WPI data shows that wholesale inflation fell mainly on account of a deflation in the primary articles subcategory – it has a 22% share in the overall WPI basket – which includes both food items and crude oil. This sub-head contracted on an annual basis for the first time since June 2023. A deflation in food articles, specifically vegetables, was what pulled down inflation in the primary articles category. Among primary food articles, pulses and vegetables contracted by 5.6% and 18.3%, respectively. Inflation in cereals also eased to 3.8% from 5.5% in March. Disinflation in crude petroleum and natural gas doubled as the subcategory contracted by 15.6% compared to 7.6% in March. This is the eighth straight month that this subcategory has been in disinflation. 'Crude oil prices have generally remained in the USD60-65/ barrel handle in April, with downward pressure arising from OPEC+ announcing production increases. This could likely add further downside to the WPI sub-index, alongside continued favourable base effects', Aastha Gudwani, India Chief Economist, Barclays said in a note. Inflation in the fuel and power category contracted by 2.2% in April 2025. This had seen an expansion of 0.2% in March after being in disinflation for seven consecutive months. Inflation in manufactured products, which has the highest weightage of 64.2% in the index, fell to 2.6% from 3.07% in March. Within manufactured products, inflation decreased in both food and non-food products. In manufactured food products, which comprise 14% of the basket of manufactured products, inflation fell to 9.4% from 10.8% in March. In non-food manufactured products, April inflation was 1.3%, down from 1.6% in March. As inflation in both primary food articles and manufactured food items fell, inflation in the overall food group also eased to 2.6% in April 2025 from 4.7% in March. The fall in WPI comes after Tuesday's retail inflation data which fell to a six-year low in April on account of falling food and vegetable prices, increasing prospects of a rate cut in the next RBI Monetary Policy Committee meeting.
