Boeing is under increased scrutiny after the most recent Air India crash, all three of which have now roiled public trust and aviation confidence. The implications for the safety of Boeing’s fleet are staggering. This is notable in particular for the 787 Dreamliner, which up until now has a remarkable safety record. The company is continuing its own investigation of the crash. Nationally, it’s fighting renewed attacks over the last few years that have damaged its brand and put its bottom line at serious risk.
The Air India crash that occurred in Ahmedabad prompted an instant and ongoing response from Boeing. The troubled company is now working directly with the troubled airline to gather further details. This tragic event comes even as Boeing is enduring a particularly brutish spell. The impacts of this expanded network are now being felt as the company continues to fight safety crises and operational challenges.
Just last month, those highs defined Boeing’s days. They celebrated the delivery of their billionth passenger on the 787 Dreamliner and that operational performance continued to improve with quality and safety being increasingly emphasized. Yet, these successes are belied by the company’s larger failures to rebound after an easily avoidable perfect storm of disasters. Last year could have been Boeing’s low point. They were hemorrhaging close to a billion dollars a month due to safety violations, quality control missteps, and a workers’ strike.
As you may have read last month, Boeing was able to escape criminal prosecution at the last minute, cutting a deal with the US Department of Justice (DoJ). This agreement was made in light of serious allegations against the company for “conspiracy to obstruct and impede” investigations into its practices. These types of accusations are not new. Former engineer Sam Salehpour, who faced harassment and threats when he tried to raise the alarm on the company’s safety protocols,
Boeing’s new CEO, Kelly Ortberg, came out of retirement only a year ago. Now, he’s got the quite different and arguably more difficult task of reviving the ailing aerospace colossus. Under his leadership, restoring trust will be key as the company continues to work to win back its customers and regulators. During Ortberg’s tenure, Boeing has tried to change the company’s safety culture. The firm has since pledged to work towards creating a more open culture. “This signals progress toward a robust reporting culture that is not fearful of retaliation,” Boeing stated in a recent communication.
Even with all of this goodwill growing on Boeing’s sleeve, the company still gets beaten up daily from all sides. The firm represented the State of Illinois in its successful $428 million settlement from Southwest Airlines. This payment covers Boeing’s financial damages associated with the long-term grounding of its 737 Max fleet. This grounding was initiated because of a software fault. It cripplingly hampered its operational capabilities and generated legitimate fears about the entire safety portfolio of Boeing’s planes.
When the former employees have sounded alarms, the focus has often been on distressing cases of workers driven to despair. They discovered that these workers installed such defective parts on the assembly line. These allegations have caused unprecedented and sustained scrutiny on Boeing’s production processes, including how the company ensures production quality.
The crash of Air India has immediately affected the short-term performance of Boeing in the stock market. Share fell dramatically by 5% when the bell rang in New York on Thursday. This significant drop indicates that investors believe the company will have trouble maintaining its stability and reputation after the incident.
Boeing’s challenges do not end there. In 2024, the company paid $160 million in compensation after one of its doors detached mid-flight on an Alaska Airlines journey. Each incident deepens Boeing’s woes. This compounds difficulties for the company as it works to restore its reputation as a leader in the industry’s safety.