Boeing's ousted CEO departs with $62 million, even without severance pay

Boeing Co's ousted chief executive officer Dennis Muilenburg is leaving the company with $62 million in compensation and pension benefits but will receive no severance pay in the wake of the 737 MAX crisis.

Muilenburg was fired from the job in December as Boeing failed to contain the fallout from a pair of fatal crashes that halted output of the company's bestselling 737 MAX jetliner and tarnished its reputation with airlines and regulators.

The compensation figures were disclosed in a regulatory filing late on Friday during a difficult week for Boeing when it also released hundreds of internal messages -- 2 major issues hanging over the company before new CEO David Calhoun starts on Monday.

The messages contained harshly critical comments about the development of the 737 MAX, including one that said the plane was "designed by clowns who in turn are supervised by monkeys."

The 737 MAX has been grounded since March following the second of 2 crashes that together killed 346 people within a span of 5 months.

Lawmakers blasted Boeing on Friday.

"346 people died. And yet, Dennis Muilenburg pressured regulators and put profits ahead of the safety of passengers, pilots, and flight attendants. He'll walk away with an additional $62.2 million. This is corruption, plain and simple," US Senator Elizabeth Warren said on Twitter.

US Rep. Peter DeFazio, who chairs the House Transportation Committee, said minutes of a June 2013 meeting showed that Boeing sought to avoid expensive training and simulator requirements by misleading regulators about an anti-stall system called MCAS that was later tied to the 2 crashes that killed 346 people.

The MAX has been grounded since the second crash in March.

Speculation that Muilenburg would be fired had been circulating in the industry for months, intensifying in October when the board stripped him of his chairman's title - although he had also twice won expressions of confidence from Calhoun, Boeing's board chairman.

A turnaround veteran and former General Electric Co executive who has led several companies in crisis, Calhoun will receive a base salary at an annual rate of $1.4 million and is eligible for $26.5 million in long-term incentive compensation, Boeing said in a filing.

Boeing said in November Muilenburg had volunteered to give up his 2019 bonus and stock awards. For 2018, his bonus and equity awards amounted to some $20 million, according to filings.

In addition to the $62 million in compensation and pension benefits, Muilenburg holds stock options that vested in 2013, Boeing said. They would be worth $18.5 million at the closing price on Friday.

"Upon his departure, Dennis received the benefits to which he was contractually entitled and he did not receive any severance pay or a 2019 annual bonus," Boeing said in a statement.

source: news.abs-cbn

Airbus to offer sleeping berths down in cargo hold

PARIS, France - Soon when you fly in an Airbus jet and you fancy a bit of shut-eye, all you will need do is make your way down to the cargo hold.

European aircraft giant Airbus announced on Tuesday that it is teaming up with Zodiac Aerospace to develop and market lower deck sleeping facilities for passengers that could be operational in A330 wide-body jets from 2020.

The sleeper compartments "would fit inside the aircraft's cargo compartments," Airbus said in a joint statement with Zodiac, a subsidiary of the French aerospace company Safran.

The modules "will be easily interchangeable with regular cargo containers,"the statement said. 

"Airlines will initially be able to choose from a catalog of certified solutions by 2020 on A330," for the sleeper pods, with the possibility of fitting them into A350 XWB airliners also being studied.

Airbus and Zodiac said the sleeping berths would not only improve passenger comfort, but also enable airlines to add value for their commercial operations.

"This approach to commercial air travel is a step change towards passenger comfort," said Geoff Pinner, head of Airbus' cabin and cargo program.

"We have already received very positive feedback from several airlines on our first mock-ups." 

Christophe Bernardini, head of Zodiac's aerospace cabin division, said the project "reaffirms our expertise in lower-deck solutions. An improved passenger experience is today a key element of differentiation for airlines." 

In November 2016, the Air France-KLM had put forward the idea of sleeping berths for passengers in the economy class, either down in the hold or above the cabin in aircraft of the group's new low-cost subsidiary, Joon.

source: news.abs-cbn.com