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  • Albaugh Pro and Con
    Posted by Christopher Fotos 6:15 PM on Sep 01, 2009

    Just to tease out one of the links I posted earler today on Jim Albaugh, Scott Carson's replacement at Boeing Commercial Airplanes, I pointed to this Reuters story, noting what a Macquaries Securitie analyst said. This is the full quote:

    ”Where we are surprised is in Boeing’s choice of successor, given Jim Albaugh’s lack of experience in commercial aerospace, and the less than perfect track record that IDS [Integrated Defense Systems, Boeing’s defence arm] has had in programme execution and wins over the last couple of years under his leadership,” said Rob Stallard, analyst with Macquarie Securities.

    ”We are not convinced that this move improves the situation at BCA [Boeing Commercial Airplanes], and we reiterate our Neutral rating on Boeing,” Mr Stallard wrote in an analyst note...

    Some analysts had questioned Mr Albaugh’s future after the company lost several large defense competitions in recent years and saw its biggest programmes cut by Robert Gates, US defence secretary, as part of a sweeping overhaul of Pentagon procurement.

    But over at Ares, our own Joe Anselmo posted A Thumbs-Up For Albaugh:

    “Jim Albaugh’s systems integration experience at IDS is highly relevant, not only for the 787 but for future aircraft development programs as well,” [Morgan Stanley analyst Heidi] Wood writes in a Sept. 1 research note. “The appointment is bold and interesting … [and] likely reflects Boeing CEO/Chairman [Jim] McNerney’s drive for changing BCA culture, as well as recognition of Albaugh’s skills growing leaders, bringing fresh competitive spirit and teamwork.”

    Joe also quotes Cowen & Co. analyst Cai von Rumohr with a more mixed view, wondering how quickly Albaugh will be able to turn things around while learning the commercial airplanes ropes. But von Rumohr also thinks the IDS problems during Albaugh's tenure were legacy issues.

     

    Tags: tw99, Boeing, Albaugh, 787

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