Boeing (BA) Reaches a Tentative Deal with Engineers. Will Higher Pay Help it Avoid a Strike?

The US Air Force awarded a $149M contract to four small steel companies (Superior Forge, Ellwood, Faxon, Grand Valley) to manufacture casings for the GBU-57 bomb, ending Boeing's 18-year monopoly. The move aims to diversify production and address supply shortages, with work extending through 2033. Boeing's past delays and the recent use of the bomb in operations prompted this change.

Boeing and Turkish Airlines finalized a deal for up to 150 737 MAX aircraft, including 100 firm orders. The agreement, signed in New York, follows a year of negotiations focused on engine terms. This is Boeing's largest single-aisle order with Turkish Airlines, who plans to use the aircraft for network expansion and fleet modernization. The deal is significant for Boeing as it seeks to regain airline confidence in the 737 MAX.

The FAA granted Boeing a waiver to produce up to 35 777 freighters from 2028 to 2031, exempting them from new emissions standards. Boeing argued the exemption was necessary to avoid disrupting the air cargo industry and protect U.S. jobs and exports. The FAA agreed, citing minimal environmental impact and public interest benefits.

Boeing's 737 MAX 10 is nearing FAA certification, with Alaska Airlines as the launch customer. The aircraft offers the highest seat count among 737s, optimized for domestic routes. Major airlines, including American, Delta, and United, have significant orders. Certification does not guarantee immediate deployment, as Alaska must validate cockpit systems. Airlines plan to use the extra space for premium seating, with American and Delta installing at least 24 first-class seats per plane.

Boeing (NYSE:BA) shares rose 0.86% Friday, outperforming the broader market as industrial stocks gained. Akasa Air is reportedly in talks for over 200 Boeing 737 Max jets, potentially worth billions. Analysts maintain a Buy consensus with an average price target of $272. Technically, Boeing faces resistance near $215.50 and support around $187.50.

Archer Aviation's acquisition of Boeing's Wisk Aero, SkyGrid, and Insitu subsidiaries cleared the Hart-Scott-Rodino waiting period, advancing a deal to combine autonomous flight, airspace software, and AI. The transaction, announced in August, still requires other regulatory approvals and is expected to close by the end of 2026. Boeing will retain access to Wisk’s technology and its stake in Archer.