Boeing says it's burning through more cash than expected following plane mishaps

Boeing CFO says the company is burning through more cash than expected this comes amid mounting Fallout stemming from an Alaska Airlines flight losing its door plug midair in January so joining us now with more on this is CBS News senior Transportation correspondent Chris vanle so why is the company burning through cash in this first quarter is it because it had to sort of stop production for a while to get things right or are there kind of additional burdens on Boeing well Boeing only stopped p

roduction for a day to do a safety standown at its rent and plant but they are producing fewer airplanes than than planned when they built their financial budget for the year um you know they they were planning to ramp up production of the 737 Max starting in February uh to get closer to a production rate of nearly 60 a month instead uh the FAA has said they can't go past uh 38 39 airplanes a month and they're building fewer 737s than that right now as they are working through um some of these w

orkflow changes the safety changes uh the quality control changes that they uh that they have identified and that are likely that more will be identified as these investigations go on so Boeing CFO said they they are uh their cash burn is higher than than projected uh in part because they're making fewer airplanes the 737 Max is a cash cow for Boeing so they had banked on uh an increased production rate and a high rate of deliveries uh to generate a lot of cash over the next couple of years uh a

s a big part of their cash flow they're making fewer of the airplanes they don't get paid till they deliver them so that means their their incoming cash flow will be less uh at a time where they're spending uh still spending money to to build uh the airplanes and have the resources there uh to build them at a much faster rate than they're building them so as you know there has been a lot of talk though about what is happening at Boeing uh you know what the door plug was just one concern but it s

eems like there's been a series of incidents now several officials including uh Transportation secretary Pete Budaj and the head of the FAA have certainly expressed concerns over quality control during production some have argued that the faa's Cozy relationship with Boeing might also be a factor but you know what is the company doing now to address these mounting concerns what well you know they have had a an outside review of their workflow that that as well as this an FAA audit that has ident

ified places where improvements were necessary um one of the big things uh that has come up again and again is what they call traveling work so what had been happening if work that would normally be done at stage one wasn't finished the plane was allowed to move on to stage two where the stage two work would be done and some of that stage one work would get done at stage two or maybe stage three as it was going down the line now Boeing is saying they're stopping traveling work um and and all the

work in stage one is going to get done before the plane advances to stage two traveling work uh what that does is it takes people who have a routine out of where they're normally working and you then bring in the the the potential of something gets left behind or something gets skipped or is there rushing and other works going on around them things don't happen in the right order and something gets missed bolts don't get screwed back into a door um you know that that is one of the the big chang

es um they've also changed their bonus structure uh instead of being focused primarily on hitting Financial metrics uh 60% of the bonuses for many of the executives now is centered around quality control and and safety metrics uh so that is one way to change the that's certainly the financial way to change the the the culture to one back to focused on safety um but it it is an evolving process and you know we learned from the FAA administrator this week that one of his concerns is when he toured

the ren plant he didn't receive a safety briefing he felt like that that that people coming into that plant should be getting a safety briefing that underscores some of his concerns about the safety culture at Boe of course that's sometimes it's the little things right that's that's really really fascinating uh Chris before we let you go got to ask you about uh the latest uh flight Incident That's Got everyone talking a man was able to sneak onto a flight last weekend without a ticket uh now fl

ight attendants figured it out and he was kicked off but how did he get on in in the first place how were official what are official saying happened sure so Sunday morning this 26-year-old man had a standby ticket on Southwest Airlines basically a buddy pass but that requires there to be an open seat in order to get on the plane he was trying to get back home to Texas after a ski trip uh told investigators according to court documents that family was coming to Texas from Florida and he needed to

get home well that first Southwest flight was full the next one was full so he decided to walk over to a Delta gate allegedly and then his according to court documents is seen on surveillance video taking photos of people's boarding passes and then using one of those photos to scan the little scanner machine at the gate to get on the plane basically used somebody else's ticket that he had taken a photo of to get on the plane court documents claim he then made a beline for one of the bathrooms a

nd hid basically in the bathroom until they were about to close the door and as the plane is taxiing and he's now looking for a seat he might have gotten away with this except for one little thing that flight to Austin was already full so now you have a guy in the aisle looking for a place to sit all the seats are full that set off some alarm Bells with flight attendants who were uh very a very quickly able to check the system to see if he was on the Manifest he was not that plane that was taxii

ng turned around went back to the gate and he was arrested and now I mean the penalty for this could be pretty stiff so I you know I don't know if it was worth it and he didn't get home any earlier it's a felony charge it's a yeah it's a felony charge and he faces if convicted up to 5 years behind bars so stowing away on an airplane is a serious crime um the FBI is investigating so it it is not something that is taken lightly yeah yeah definitely uh certainly clever though in all the wrong ways

Chris thank you very much