Boeing’s troubles have recently escalated following the crash of an Air India flight in Ahmedabad, India last month. Now, that change has put the company in a stormy sea. This latest incident has sparked a fresh wave of criticisms of the company’s record on safety. This is all the more worrisome considering Boeing’s very troubled past with the 737 Max model, from which at least one fatal crash was reported. Boeing has been working closely with Air India to learn more surrounding the crash. In parallel, the company is continuing to pay the price for past operational failures and tending to current fallout from continued operational breakdowns.
This crash comes at a time when Boeing is trying to pull itself up from a series of self-inflicted tragedies. The financial strain caused the company to ground its 737 Max model worldwide for 18 months after a software defect. This grounding not only contributed to its tarnished reputation but led to over $800 million in damages. Last year, Boeing was losing at a staggering rate—almost a billion dollars a month. These losses were largely the result of safety emergencies, quality control catastrophes, and labor walkouts.
Just last month, Boeing/Crimes Under Oath dodged criminal prosecution. The company entered into a Deferred Prosecution Agreement with the U.S. Department of Justice (DoJ), settling allegations of “conspiracy to obstruct and impede” DoJ investigations into its safety practices. This settlement followed a rocky period for the firm. Internal controversies flared after the sounds engineer Sam Salehpour sued the organization for harassment after he raised safety concerns.
Boeing’s new CEO, Kelly Ortberg, who came out of retirement last year to take over at Boeing and guide the company through these rough waters. During his time at the helm, Boeing achieved a historic milestone, passing its billionth passenger on the new 787 Dreamliner just last month. Indeed, since April, the company has announced a string of positive operational execution news. They attribute this progress to a new emphasis on the importance of safety and quality.
Despite these great strides, the Air India crash dims a bit of shine from Boeing’s progress. When markets opened in New York on Thursday, the company’s stock plummeted by 5%. This decline was a reflection of investor concern about its safety brand. Furthermore, Boeing faced a $428 million settlement with Southwest Airlines due to financial damages from the long-term grounding of the 737 Max fleet.
Boeing’s troubles extend beyond financial losses. In March last year, former quality control manager, John Barnett, died by suicide. Though tragic, this shocking incident was used to shine a light on the extreme stress employees were under at the time. Reports like this one from 2019 painted a troubling picture. Under-pressure workers were having to install sub-standard parts onto aircraft production lines, which endangered the integrity of their products.
In response to the recent tragedy, Boeing expressed its condolences, stating that their “thoughts are with the passengers, crew, first responders and all affected.” This feeling further illustrates the seriousness of the current moment as Boeing continues to do everything in its power to restore public faith in its airplanes.
The horrific crash has renewed scrutiny over the company’s once-lauded safety record, now scratched and dented by this week’s crash. Boeing has a long road ahead and needs to continue working and quickly to regain the trust of airlines and passengers. Meanwhile, they’re required to address persistent safety issues.
With these investigations into the Air India crash still ongoing, Boeing remains deeply committed to transparency and is working with local authorities, including the NTSB, to determine how this accident happened. This question has huge implications for how the company will operate going forward. It might be taking a significant third step towards mending its image in the aviation arena.