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How Boeing's Race for Profits Created Safety and Quality Issues

How Boeing's Race for Profits Created Safety and Quality Issues

BY FRANCO GROBLER January 25, 2024 0 COMMENTS

Once a symbol of American aviation prowess, Boeing is in a tailspin of controversy and financial woes. The once-unthinkable prospect of a competitor like Airbus surpassing its market dominance now looms large, fueled by troubling revelations that point to a company prioritizing profits over safety and quality. 

 

There are multiple complex factors behind Boeing's descent, examining the role of lax quality control, a relentless pursuit of profits, and the growing concern among shareholders who see their investments threatened.

 

A Boeing 737 MAX with generic livery on the ground | Photo: Boeing

 

Quality Control Lapses

 

Investigations into the 737 MAX crashes of 2018 and 2019 exposed a shocking disregard for quality control measures within Boeing and the FAA. The U.S. Senate Commerce Committee reported faulty wiring, shoddy manufacturing practices, and a culture of silence where concerns from engineers and technicians were silenced. 

 

The Maneuvering Characteristics Augmentation System (MCAS), a key factor in the crashes, was reportedly rushed through development and inadequately tested, leading to tragic consequences. These revelations shattered public trust and raised serious questions about Boeing's commitment to safety. 

 

A Boeing 737 MAX with generic livery in the air | Photo: Boeing

 

Alaska Woes and Loose Bolts

 

On January 5, Alaska Airlines Flight 1282 was en route from Portland, Oregon, to San Diego, California, when a door plug suddenly blew out at around 16,000 feet. The rapid decompression caused a window to shatter, injuring one passenger and thankfully not causing more serious harm. The pilots made a safe emergency landing back in Portland.

 



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Following the incident, the Federal Aviation Administration (FAA) launched a thorough investigation, after which they discovered that the door plug failure was not an isolated event and worryingly, they found "many" loose bolts on other Boeing 737 Max 9 aircraft operated by both Alaska Airlines and United Airlines. This raised serious concerns about potential safety hazards across the fleet.

 

In response to the FAA's findings, Boeing issued a service bulletin requiring immediate inspections of all 737 Max 9s for loose hardware, particularly in the area of the door plugs and rudder control system. Both Alaska Airlines and United Airlines grounded their fleets of 737 Max 9s while they conducted thorough inspections and implemented corrective measures.

 

Photo: Jason Cassady | AeroXplorer

 

The Race for Profits

 

Fueled by intense competition from Airbus, Boeing embarked on an aggressive strategy of cost-cutting and faster production cycles. This prioritization of speed over substance cut corners in crucial areas like quality control and employee training. Boeing also faced a harsh landing back in 2021, agreeing to pay over $2.5 billion after being charged with a "conspiracy to defraud" the FAA over flaws in its 737 Max aircraft. 

 

U.S. Attorney General Merrick Garland declared, "Boeing's employees engaged in an egregious scheme to defraud the FAA, putting passengers and airline crews at risk." The Justice Department accused Boeing of withholding crucial information from regulators about a malfunctioning flight control system.

 

"Every penny of this settlement cannot bring back our loved ones," lamented Nadia Echchaoui, who lost her husband in the Ethiopian Airlines crash. Families expressed anger and grief, questioning how Boeing could prioritize profit over passenger safety.

 

The aircraft involved in the Ethiopian Airlines crash, with registration ET-AVJ | Photo: Flickr

 

CEO Dave Calhoun acknowledged "deep regret" and vowed to rebuild trust. The financial blow was significant, including a $243.6 million criminal fine, $1.77 billion in airline compensation, and a $500 million fund for crash victim families. Yet, the damage to Boeing's reputation and future sales remains immeasurable.

 

The pressure to meet ambitious delivery deadlines and appease shareholders led to a culture where raising concerns about safety and quality became career suicide. This toxic environment ultimately compromised the integrity of Boeing's products and contributed to the string of accidents and production delays that have plagued the company.

 

Boeing's stock price over the past five years | Photo: Boeing

 

Shareholder Anxiety and A Culture of Concealment

 

The fallout from Boeing's troubles has been swift and severe. The company's share price has plummeted from a high of $440 in 2019 to a current value hovering around $210, reflecting a staggering loss of investor confidence. Shareholders are expressing deep concern about the company's leadership, its ability to restore public trust, and its future profitability. The grounding of the 737 MAX, billions in compensation payouts to airlines, and the prospect of hefty fines from regulatory authorities have cast a dark shadow over the company's financial prospects.

 



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Adding to the woes is the revelation of a culture of concealment within Boeing. Internal emails and communications revealed attempts to downplay concerns about the 737 MAX to regulators and airlines, further eroding public trust and fueling accusations of corporate arrogance. This lack of transparency has compounded the damage, making it even more difficult for Boeing to regain public confidence and rebuild its reputation.

 

Boeing's path to recovery is paved with challenges. The company must overhaul its quality control practices, implement robust safety measures, and foster a culture prioritizing integrity over profits. Rebuilding public trust will require a sustained commitment to transparency and accountability, addressing concerns head-on rather than obfuscation. Addressing shareholders' concerns requires clear action plans and a demonstrably renewed focus on long-term sustainability over short-term gains.

 

Photo: Nathan Francois | AeroXplorer

 

Looking Ahead

 

Boeing's legacy as a pioneer in aviation is undeniable. However, its recent troubles are a stark reminder that even the most iconic companies can stumble when greed and complacency take hold. The road to regaining its position as a leader in the aviation industry will be long and arduous, requiring a fundamental shift in corporate culture, a relentless focus on safety and quality, and a genuine commitment to rebuilding trust with all stakeholders. Only then can Boeing hope to reclaim its wings and soar once again. 

 



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Franco Grobler
Passionate aviation enthusiast from South Africa dedicated to bringing you articles on the latest aviation news, I aim to inspire and inform. I am set on embarking pilot training in 2024 to soar to new heights in the aviation world.

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