Boeing's fall from grace is only acquiring a more expensive and discouraging shape with every passing day. More negative developments add to the aviation and aerospace American giant's existing woes that once drew pride in being one of the largest employers in the United States.
Overcharging the US Air Force?
In the most recent development, an audit conducted by the US Department of Defence or the Pentagon has now revealed that the aviation behemoth overcharged the United States Air Force.
C-17 Cargo Planes |
This 'surge' in pricing amounted to about USD 1 million for spare parts on C-17 cargo planes. More astoundingly, this also included an 8,000 per cent markup for basic items like lavatory soap dispensers.
In pursuance to the audit from the Pentagon, nine of the 46 C-17 spare parts that were purchased between 2018 and 2022 appeared to be adequately priced, while 12 were expensive.
Boeing's Response
This also comes at a time when the crucial union strike that has plagued Boeing will take a decisive turn when the unions vote on the matter on Monday after the company raised its bid to end the strike.
When it comes to the accusation of overcharging made by the US government's defence wing, the company refuted the allegations and said it will release a detailed response in the coming days.
Shares of Boeing Dip
Meanwhile, when we look at Boeing's performance in the equity market, that too appears to have taken a hit, as the company shares continue to be on the decline.
Over the past five trading sessions, the company shares have slumped by 4.29 per cent. On Thursday, the story of plummeting value continued. The shares decreased in value by 3.23 per cent or USD 4.98, before closing for the day's trade at USD 149.31 per piece. This is over USD 100 short of its 52-week high figure of USD 267.54 per share.
