Air travel: Consequences pile up for Boeing
The fallout over Boeing’s 737 Max 8 crashes continued this week, said David Meyer in Fortune.com. Indonesia’s national airline canceled a $5 billion order for 50 planes, while China ordered 300 planes from Boeing rival Airbus. Those include 290 A320s, the plane that competes most directly with the 737. The plane remains grounded around the world; in the U.S., American Airlines alone is canceling 90 flights a day. Airlines are demanding compensation from Boeing and “the longer the groundings continue, the higher those costs will rise.”
Regulation: The EU’s new copyright handcuffs
The European Parliament approved a new copyright enforcement bill this week that could bring sweeping changes to the tech giants, said Alex Hern in The Guardian. The controversial directive, which would be put in place over the next two years by the EU’s member states, would require websites “to take active measures to prevent copyrighted material from being uploaded without permission” by holding the websites liable. It would also require the tech companies to pay licensing fees to publications “whose work gets aggregated in services like Google News.” Google and Amazon said the regulations “may force them to close services in Europe.”
Energy: Ex–Enron CEO climbs back into business
Former Enron CEO Jeffrey Skilling is planning a new energy venture just weeks after being released from prison after 12 years, said Christopher Matthews and Katherine Blunt in The Wall Street Journal. Skilling “has been holding meetings with former Enron executives and others” in an effort to win backing for a mystery project that some described as a “digital platform connecting investors to oil and gas projects.” Skilling was worth $100 million as Enron’s CEO in 2001. But after pleading guilty to fraud, conspiracy, and insider-trading charges in 2006, “it’s unclear how much” of that he retained.
IPOs: Another unicorn joins the herd
Pinterest became the latest “unicorn” to file its initial public offering prospectus last week, said Erin Griffith in The New York Times. It joins Uber, Slack, and Postmates in the lineup of high-profile “young technology companies poised to go public in the coming months.” Though “unicorns” in Silicon Valley lingo means that investors already value them at over $1 billion, most of the companies on the IPO runway have yet to become profitable. But Pinterest’s $63 million loss in 2018 at least looks modest compared with the billions its peers are hemorrhaging.