11:00 AM EDT, 03/25/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

The Wall Street Journal notes that BA's CEO, David Calhoun, has elected to resign at year end, the head of its commercial aircraft unit will step down immediately, and the current Chairman of the Board will not stand for re-election. Despite the shake-up at the top, we think BA has two major issues that will take time to resolve. The first is a culture issue. We believe that speed-to-market has been treated by management as a relatively higher priority than quality for some time, and we note that Calhoun became CEO following the last crisis in 2018-2019 over the 737 MAX MCAS software problems. The second issue is innovation. We note that the 737 MAX is an update of a 50-year-old plane family, and that chief rival Airbus (AIR FP EUR170 *****) has held a market share advantage over BA in commercial aircraft deliveries since 2019. In the longer term, BA should still benefit from strong secular growth trends in new aircraft, but near-term prospects remain very tenuous, in our view.