Boeing has been rightly scrutinized in recent weeks since the crash of an Air India aircraft late last month. This recent incident has put the safety and reliability of its planes into serious question. The accident comes amid a tumultuous period for the aerospace giant. It has only recently begun to rebound from a string of body blows that have ailed its operations in recent years.
After the Air India crash, Boeing’s shares have tumbled by 5%. This significant drop reflects deep investor concerns over the company’s capacity to maintain rigorous safety standards. Boeing’s spokesperson expressed condolences, stating, “Our thoughts are with the passengers, crew, first responders and all affected,” while confirming that the company is working closely with Air India to gather more information regarding the incident.
Boeing is still reeling from the damage it suffered after its 737 Max model was grounded worldwide for 18 months. This decision followed a recent software defect associated with two fatal crashes. Indeed, last month, the company came within a hair’s breadth of being criminally prosecuted. They only settled with the US Department of Justice after being accused of colluding to undermine investigations into their dangerous safety practices.
To have any hope of turning around the ailing enterprise, Kelly Ortberg came out of retirement. She’s been in the leadership position for just over a year. While on the job, she met enormous challenges. Last year, the company was losing close to a billion dollars per month as it grappled with an ongoing safety crisis, quality control issues, and labor strikes. In April, Boeing reported “improved operational performance” stemming from an ongoing focus on safety and quality, but recent events have cast doubt on these claims.
Against this backdrop of challenges, Boeing marked a high point of these challenges last month by celebrating the delivery of its billionth passenger on the 787 Dreamliner. This model had otherwise flown with an unblemished safety record, so the Air India crash proved especially embarrassing for the firm. The 787 Dreamliner now finds itself at the center of a firestorm of public criticism as investigations continue.
Boeing’s financial woes have further led to settlements with other airlines linked to shameful settlements with other airlines. Of special note is the case that brought a $428 million settlement with Southwest Airlines. This settlement involved financial damages that stemmed from the long-term grounding of the entire 737 Max fleet. Boeing took a major reputational hit following the high-profile suicide of former employee John Barnett. As a quality control manager, he had spent more than 30 years toward his company’s bottom line. His death in March of last year, known as #M #, sparked a national outcry over workplace conditions at the company.
IntelliRide engineer Sam Salehpour’s courageous decision to come forward as a whistleblower. He says he was retaliated against through harassment and threatened after raising safety concerns about Boeing’s planes. These incidents have contributed to growing unease about the corporate culture at Boeing and its commitment to ensuring aircraft safety.
Additional incidents have further marred Boeing’s reputation. In 2024, the company hit the news again after agreeing to pay $160 million in restitution. This followed an alarming mid-air incident on an Alaska Airlines flight when one of their doors blew off. Afterward, investigations revealed disturbing facts — workers were even pressured to line up bad parts on purpose on the assembly line. That still raises grave doubts about the company’s quality control protocols and practices.
The Air India crash poses a significant challenge for Boeing as it strives to restore public confidence and address ongoing safety concerns. As investigations continue and more facts emerge, all stakeholders will be watching carefully to see how Boeing manages this new crisis.