Boeing's turbulent half-decade: Challenges and reckonings

Global Economy

TBS Report
18 March, 2024, 10:40 am
Last modified: 18 March, 2024, 11:34 am
Just as the memories of the 737 MAX crisis began to fade, another alarming incident with these planes occurred in January of this year. An Alaskan Airlines flight had an unused emergency exit blow out shortly after taking off from Portland International Airport

Once regarded as the premier plane building company in the world, Boeing has had a self-inflicted fall from grace in the last half decade, seemingly by placing profits over safety.

Just as the memories of the 737 MAX crisis began to fade, another alarming incident with these planes occurred in January of this year. An Alaskan Airlines flight had an unused emergency exit blow out shortly after taking off from Portland International Airport.

The plane was brand new at the time.

Thankfully there were no injuries, but further investigation by the US National Transportation Safety Board found that the four bolts meant to secure the door had not been fitted. This prompted Alaskan Airlines and many others to inspect their other Boeing aeroplanes, which revealed it was not a one off problem. 

Loose or missing bolts, and other safety issues were found on multiple aircraft

The head of the Allied Pilots Association, Captain Dennis Tajer, insists he can no longer take the quality of the plane he's flying for granted.

"I'm at an alert status that I've never had to be in on a Boeing airplane," he told BBC.

"Because I don't trust that they've followed the processes that have previously kept me safe on Boeing aeroplanes for over three decades."

After the MAX crisis in 2018 and 2019, Boeing agreed to pay $2.5bn (£1.8bn) to settle fraud charges, and admitted deception, though in later court hearings it formally pleaded not guilty. It subsequently faced widespread accusations that it had put profits ahead of passengers' lives.

It reaffirmed its commitment to safety, and in early 2020 its newly appointed chief executive Dave Calhoun promised it could "do better. Much better."

The recent revelations that a significant number of new Boeing planes have safety and manufacturing issues have cast serious doubt on that claim.

The Federal Aviation Administration, the US regulator, recently announced the results of a six-week audit of the 737 Max production process at Boeing and its supplier Spirit Aerosystems. The audit revealed "multiple instances where the companies failed to comply with manufacturing quality control requirements."

This revelation followed closely on the heels of another report on Boeing's safety culture conducted by an expert panel. 

The panel identified a "disconnect" between senior management and regular staff, along with indications that employees were reluctant to report issues due to fear of retaliation.

Adam Dickson, a former senior manager at Boeing who was previously involved in the 737 Max program, concurs that there exists a significant gap between executives and workers on the factory floor.

"The culture at Boeing has been toxic to trust for over a decade now," he says.

"You can add safety steps, you can add procedures. But the fundamental issue of distrust makes those changes almost ineffective", he claims.

Meanwhile, further evidence of how production problems could endanger safety emerged this week.

Boeing said based on the FAA audit it was continuing "to implement immediate changes and develop a comprehensive action plan to strengthen safety and quality, and build the confidence of our customers and their passengers."

 

The current market situation

Some airlines may consider acquiring Airbus models as replacements for the grounded Boeing aircraft. However, a complete shift of orders from the American manufacturer to the European one is simply not feasible.

Both Airbus and Boeing have extensive order backlogs, with Airbus boasting over 8,000 planes and Boeing having more than 6,000.

Airlines are already experiencing delays in receiving new aircraft, partly due to supply chain issues faced by Airbus, resulting in tardy deliveries.

Another potential contender is the Chinese manufacturer Comac, with its C919 aircraft designed to rival the Boeing 737 Max and the Airbus A320 neo.

However, this program is still in its early stages, with projections suggesting it will only produce 150 aircraft annually by 2028.

In essence, the market relies on Boeing's recovery and swift resolution of its current challenges. 

The question remains: can that be achieved?

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