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Boeing board to meet in Texas as scrutiny intensifies: sources

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By Eric M. Johnson and Tim Hepher

(Reuters) – Boeing Co’s <BA.N> board of directors and top executives from its airplanes division and supply chain were due to meet on Sunday in San Antonio, Texas, two days after the U.S. planemaker was plunged into a fresh crisis over its banned 737 MAX jet.

The meeting comes as pressure mounts on the world’s largest planemaker not only from investigations into the 737 MAX following two deadly crashes, but also from the financial burden caused by the jet’s safety ban and continued high production.

Several industry sources said there was speculation inside the company of significant job cuts as Boeing, unable to deliver 737 MAX planes to customers, continues to drain cash.

And although Boeing has so far told suppliers it expects to maintain a production rate of 42 single-aisles monthly with plans to increase to a record level next near, rates may have to come down if regulators further delay the MAX’s return to service, the people said.

The schedule for the board’s face-to-face meetings was set for Sunday and Monday in San Antonio, one of the people said, two days before Boeing reports earnings on Oct. 23.

The week after, Boeing Chief Executive Officer Dennis Muilenburg – who was stripped of his job as board chairman eight days ago – is due to testify before U.S. Congress about the plane’s development.

In conjunction with the board meeting, top executives including Boeing Commercial Airplanes chief executive Kevin McAllister and Jenette Ramos, senior vice president of Manufacturing, Supply Chain & Operations, were due to fly on Sunday to Boeing’s Kelly Field facility in San Antonio, where numerous 737 MAX jets are parked in storage, two of the people said.

A Boeing spokesman declined to comment on the board’s agenda and the company’s production or staffing levels.

Apart from those issues, the board is likely to discuss a series of 2016 internal messages, first reported by Reuters on Friday, in which a senior Boeing pilot said he might have unintentionally misled regulators.

The pilot also said the stall-prevention system known as MCAS – which investigators have linked to the crashes in Indonesia and Ethiopia that killed 346 people – was “running rampant” during a simulator session.

The messages sent Boeing shares tumbling, prompted a demand by U.S. regulators for an immediate explanation, and a new call in Congress for Boeing to shake up its management.

Federal prosecutors aided by the FBI, the Transportation Department Inspector General and several blue-ribbon panels are also investigating the plane’s approval.

(Reporting by Eric M. Johnson and Tim Hepher; Editing by Daniel Wallis)



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Tammy Erickson | The Role of Leaders in a Collaborative Culture

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At the 2019 Innovation Roundtable Summit in Copenhagen, Professor Tammy Erickson (London Business School) is asking 2 key questions about leaders today: How do leaders’ behaviors influence organizations today? What can leaders do to make organizations more adaptive for the kind of challenges they face today?

In this video, Professor Erickson discusses key trends in organizational behavior, such as intelligence, and how to measure a company’s collaborative capacity.

For more information on Tammy Erickson, please visit:

Tammy Erickson is available for speaking engagements and advisory/consulting services through the exclusive representation of Stern Speakers, a division of Stern Strategy Group®. For insights in your inbox, sign up for our newsletter:

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Sports bulletin : Rohit Sharma becomes La Liga brand ambassador, other sports news

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Sports bulletin : Rohit Sharma becomes La Liga brand ambassador

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T-Mobile CEO takes the stand in T-Mobile/Sprint merger trial

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By Sheila Dang

(Reuters) – T-Mobile US Inc <TMUS.O> Chief Executive John Legere testified on Friday that he believes U.S. regulators considered Dish Network’s <DISH.O> history of attempting to build a wireless network when they approved the merger between T-Mobile and Sprint Corp <S.N>.

A group of U.S. states have sued to stop the merger, saying it would lead to higher prices.

T-Mobile and Sprint have already received approval for the deal from the U.S. Department of Justice and the Federal Communications Commission (FCC), after the companies agreed to sell Sprint’s prepaid phone business and some spectrum to satellite TV provider Dish, which has committed to building a nationwide wireless network and becoming a competitor in the industry.

The states have argued that Dish has a history of stockpiling FCC licenses for wireless spectrum, or airwaves that carry data, and has not yet demonstrated that it can build a wireless network.

Legere was the defense’s first witness, and his testimony came on the fifth day of a trial that is expected to run until Dec. 20. He has previously accused Dish of “hoarding” spectrum.

Glenn Pomerantz, an attorney representing California in the lawsuit, asked Legere about a letter T-Mobile previously sent to the FCC, criticizing Dish’s wireless business plans as a “modernized version of last century’s two-way paging.”

Legere testified that he believed the FCC considered Dish’s track record when it approved the merger of T-Mobile and Sprint.

Under the terms with the FCC, which has given the green light to the T-Mobile and Sprint merger, Dish committed to build a 5G wireless network that will cover at least 70% of the U.S. population by June 2023, or it will pay up to $2.2 billion in fines.

(Reporting by Sheila Dang; Editing by Noeleen Walder and David Gregorio)



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