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- Germany into Nations League quarters, France and Italy win
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- Revived Italy sweep past Israel in Nations League amid high security
- Trudeau slams India as tensions soar over Sikh separatist's murder
- Harris courts Black voters as Trump makes inroads
- Wall Street stocks hit fresh records as oil prices slide
- Nigerian team return home after boycotting AFCON qualifier in Libya
- Nigeria refuse to play in Libya as Algeria, Cameroon qualify
- Strike-hit Boeing leaves experts puzzled by strategy
- Leweling rockets Germany past Dutch and into Nations League quarterfinals
- Kolo Muani double fires France to win in Belgium
- Italy sweep past Israel in Nations League amid high security
- UN peacekeepers to 'stay in all positions' in Lebanon
- NASA launches probe to study if life possible on icy Jupiter moon
- 'Unique' Ronaldo an example to everyone, says Martinez
- New lawsuits against Sean Combs allege sex assault, including of minor
- Italy begins migrant transfers to Albania with first group of 16
- Google signs nuclear power deal with startup Kairos
- Carsley open to foreign England manager amid Guardiola links
- Pogba hungry to have his football cake after doping ban
- India and Canada expel top envoys in Sikh separatist killing row
- Mbappe says victim of 'fake news' after 'rape' report in Sweden
- Lebanon says 21 killed in strike on northern village
- Netanyahu vows no mercy after deadly Hezbollah drone strike
- Russia could be able to attack NATO by 2030: German intelligence
- EVs seek to regain sales momentum at Paris Motor Show
- Clarke backs Scotland to bounce back from 'tough' run
- Harris, Trump target crucial Pennsylvania as US vote looms
- NASA probe Europa Clipper lifts off for Jupiter's icy moon
- Lebanese Red Cross says 18 killed in strike in north
- Mendy borrowed money from Man City team-mates for legal fees
- Palestinian officials say Israeli forces kill two in West Bank
- Football leagues, unions file EU complaint against FIFA in calendar dispute
- Nigeria boycott AFCON qualifier in Libya after 'inhumane treatment'
- India to recall top envoy to Canada: foreign ministry
- Hezbollah, Israeli troops in 'violent clashes' after drone strike
- China insists won't renounce 'use of force' to take Taiwan as drills end
- Painkiller sale plan to US gives France major headache
- Italy begins landmark migrant transfers to Albania
- Russia jails French researcher for three years
- 'Unsustainable' housing crisis bedevils Spain's socialist govt
- Stocks shrug off China disappointment but oil slides
- New Zealand 4-0 up in America's Cup but British show signs of life
- Russian prosecutor demands 3 years prison for French researcher
- 'Innocent' British nerve agent victim caught in global murder plot: inquiry
Strike-hit Boeing leaves experts puzzled by strategy
A historic round of cost-cutting measures at Boeing has left experts perplexed and wondering whether the aviation giant, plagued by a month-long strike, is sacrificing its future.
"I'm not sure I see the bigger plan here," Richard Aboulafia, a consultant with AeroDynamic, told AFP.
"Getting rid of a lot of talent when there's a serious aerospace talent shortage doesn't seem like the smartest move," he added.
The company announced a series of belt-tightening measures and production delays on Friday, as the strike of 33,000 workers has added to Boeing's litany of problems.
Boeing staff with the International Association of Machinists (IAM) and Aerospace Workers walked off the job on September 13 after overwhelmingly rejecting a contract offer.
Boeing plans to reduce its workforce by around 10 percent over the next few months. It employed almost 171,000 people by the end of 2023, including 41,000 outside the United States.
"There may be some fat, but the idea that there's 10 percent fat, I can't imagine in what universe that could be true," said Aboulafia.
According to analysts at TD Cowen, the group is carrying out a "strategic reset" to raise capital and fill its coffers by as much as $10 billion, in the absence of aircraft deliveries.
Boeing has been struggling after the crashes of 2018 and 2019 (346 deaths in total) and the Covid-19 pandemic. The company's cash position is rapidly diminishing as the strike continues.
Despite negotiations that began in May and intensified since mid-September, the disagreement between the IAM machinists' union and Boeing persists, with relations appearing to be at an all-time low.
Boeing withdrew its latest offer after a third round of government-mediated talks last week and filed an accusation of unfair labor practice with the federal labor agency (NLRB), matching a similar move by the union in September.
- Need cash -
According to Melius Research, a fundraising effort would "strengthen Boeing's negotiating position," as it would remove the urgency of finding an agreement to restart production.
The direct financial impact of the first month of the strike reached $5 billion, including $3.26 billion for Boeing, according to Anderson Economic Group.
The remainder included losses on industry wages, suppliers, Boeing customers and the Seattle area beyond those directly hit by the strike.
Another option for recovering fresh cash is to sell off non-strategic assets, noted TD Cowen, which identified some $20 billion dollars in potential value.
Emirates airline boss Tim Clark told specialist website The Air Current, "Unless the company is able to raise funds... I see an imminent investment downgrade with a Chapter 11 (bankruptcy proceeding) looming on the horizon."
Negotiations are stalling over pay raises - Boeing has gone from a 25 percent increase to 30 percent over four years, while the union is demanding 40 percent.
The union also wants the reinstatement of a pension scheme that was abolished in 2008, which is a nonstarter for Boeing.
- Siege mentality -
Melius Research suggested that the strike is not really a surprise, as it is "a symptom of a bigger problem."
Workers feel they have made many sacrifices for Boeing over the past 20 years.
Meanwhile, between 2010 and 2019, the group paid out $68 billion to shareholders in dividends and share buybacks.
Boeing also announced $5 billion in pre-tax charges in the third quarter -- to be published on October 23 -- partly due to the strike, as well as the halt in production of the 767 Freighter.
The union insisted that "Machinists did not cause" the job cuts or the halt to the 767 program, stating that the walkout was "a direct outcome of poor decision-making by Boeing's executives."
For its part, Boeing said: "We really want to reach an agreement that offers our employees better pay and market-leading benefits," accusing the IAM of making "misleading" statements.
Both sides are "preparing for a siege," said consultant Aboulafia.
T.Bondarenko--BTB