SEATTLE — Veteran aviation analyst and journalist Scott Hamilton thinks the Boeing machinists union strike could be resolved within a matter of weeks, potentially allowing the company's new CEO to claim a small victory during a tumultuous time.
Kelly Ortberg took the reins of Boeing in early August, amid a terrible financial and public relations period for the plane maker.
According to quarterly earnings filings, Boeing has burned more than $8 billion through the first two quarters of 2024. The company has lost more than $25 billion over the last six years.
"[Ortberg] came in at an almost impossible time, but if this strike is resolved quickly, that goes to his credit," said Hamilton. "Boeing actually could come out with a reset with labor relations and come out in positive way, again provided it's resolved quickly."
Hamilton believes that's more likely than not.
"This is my guess only. [But] this might be resolved within the next two weeks. Everyone wants to resolve it, everyone recognizes the stakes here," he told KING 5.
In 2008, machinists were on strike for 57 days, leading to an estimated $2 billion in losses.
Hamilton said it's unlikely the current strike could lead to Boeing pulling facilities out of the Pacific Northwest over fears of future labor issues.
"There's no place really right now that Boeing could relocate the 737 (Renton) line or the 777X (Everett) line. In any event, those locations were guaranteed in the 2011 and 2014 amendments. I have no reason to believe those are in jeopardy," he said.
Additionally, Hamilton suggested the strike is also unlikely to impact current purchase agreements between the company and airlines.
"I don't see that. Number one, I believe the contracts characterize strikes as an excusable delay. If a delay goes beyond like 12 months, the airlines could start cancelling orders," he said. "We're certainly not looking at that."