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A deeply wounded Boeing faces the shareholders ready to fight



The shareholders have a lot to complain about. The company's stock lost 10% of its value following the crash of an Ethiopian Airlines aircraft on 10th March, the company's second best aircraft crash. A Lion Air 737 Max crashed in October under similar circumstances. The second crash led to a worldwide grounding of 737 Max in the last month.
Boeing announced last week that first-quarter earnings were down 21% on the back of the crisis. Boeing suspended its share buyback plans to save cash.

CEO Dennis Muilenburg will begin the annual meeting with a moment of silence for the 346 people killed in Indonesia's October crashes of Ethiopian Airlines and Lion Air in Indonesia by CNN Business. He will insist that Boeing puts safety first, and he wants to say that the company has made every effort to find a solution. And he'll swear the 737 Max will be the safest aircraft in the air as soon as Boeing develops a solution for the automatic safety function that is the focus of both crash tests.

"These enduring values ​​are central to all our actions," said Muilenburg in his prepared remarks. "However, we know that we can always be better, we have the responsibility to design, build and support the safest aircraft in the sky, and recent accidents have only increased our commitment."

Among the shareholder votes on The Annual Assembly is a proposal that would separate the positions of Chairman and CEO, both of which are now held by Muilenburg. Boeing turns against this proposal.

The resolution was in front of the current crisis, and at last year's annual meeting there was a similar proposal that was defeated with support from only 25% of the company's stock. However, two shareholder advisory firms voted for the resolution this time.

"Shareholders would benefit from the most robust form of independent oversight to ensure that corporate governance can regain the trust of regulators, customers and other key stakeholders," said one of these service providers, ISS, in a note in which he said demanded support for the measure.

A small group of demonstrators balked at the annual meeting with pouring rain and cold. Most had large photos of some of the people killed on both flights. There were signs saying "Boeing's Arrogance Kills" and "Boeing & Executors Following Manslaughter".

There remains questions as to whether Boeing ( BA did everything possible to make sure the planes were as safe as possible.) For example, four Boeing employees have a whistleblower hotline CNN reported to Federal Aviation Administration to report damage to sensor cabling, and Boeing has forced airlines to pay extra if they wanted a warning telling pilots if two sensors were conflicting after the crashes the company reports in Congress that it will make this feature standard for aircraft in the future.

Muilenburg defended this earlier decision to include the warning as an option in its prepared remarks.

"We do not make security features optional," he said "Each of our aircraft contains all the safety features needed for a safe flight."

Muilenburg said Again, that the company comes close to a software fix. With the updated software 1

46 flights of the 737 Max were completed, which corresponds to a flight time of about 246 hours. Last week, he told investors that he had personally flown some of these test flights.

The safety feature pushes the nose of the aircraft down when a sensor detects that it is climbing too fast and is subject to a stall. Apparently, the sensor gave an incorrect value on both flights. Two weeks after the crash in Ethiopia, Boeing announced that the software fix would add data to a second sensor that measures the aircraft's horizontal tilt.

– Glen Dacy of CNN contributed to this report


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