Boeing is in serious trouble these days. This follows in the wake of a recent crash in India where an Air India flight operated its 787 Dreamliner model. The incident has national attention, raising fears about the company’s safety record and emergency response. Policy makers are more closely examining their operational practices, particularly after several years of failures or missteps. The accident has led Boeing’s stock in New York to plunge 5% already. This new judicial development is an additional blow to the company’s attempts to restore public trust.
That is a disastrous development for Boeing, whose 787 Dreamliner had developed a sterling safety record prior to this crash. Just last month, the company was celebrating a huge milestone, as it transported its billionth passenger on the Dreamliner. This impressive accomplishment is indicative of the program’s success thus far. This milestone has been eclipsed by this tragedy and once again raised questions about Boeing’s dedication to safe practices.
Boeing’s last few years have been a nightmarish story. The aviation giant faced a global grounding of its 737 Max model for 18 months due to a software defect. As you might expect, this event was a significant inflection point for the company. It led to a $428 million settlement with Southwest Airlines, covering the financial impact of the long-term grounding of the plane. Boeing came within a whisker of criminal prosecution last month, following an agreement with the US DoJ to avoid charges being levelled. The DoJ called out a conspiracy to obstruct and impede their ability to investigate. The recently released data provides important context to the ongoing legal challenges.
In an effort to revive the struggling company, Kelly Ortberg came out of retirement just over a year ago to take the helm at Boeing. Under his leadership, the company has touted “significantly improved operational performance,” due to a now 15-year commitment to safety and quality. Boeing, of course, went through the wringer last year, losing upwards of a billion dollars a month. Safety crises, quality control issues and widespread labor strikes didn’t help shake these mind-blowing losses.
The concerns about Boeing go beyond the company’s fiscal losses. Tragedy almost a year to the day when Tri-Met’s John Barnett took his own life last March. He had been quality control manager and a more than 30-year veteran of Boeing’s workforce. His death has provoked outrage over the company’s workplace practices and safety culture. Whistleblower engineer Sam Salehpour recently informed American lawmakers of grave concerns. He shared that after reporting safety violations at Boeing, he was bullied and retaliated against with death threats.
Boeing’s troubles these days go beyond the recent whistleblower allegations that former employees say forced workers to force sub-par parts in on production lines. Unfortunately, this alarming trend only adds to the criticisms that have been leveled at the company’s manufacturing practices. Notably, in 2024, Boeing paid $160 million in compensation after an incident in which one of its doors flew off during an Alaska Airlines flight.
In response to the Air India crash, Boeing issued a statement of deep condolences. The firm remains in close communication with Air India to obtain further information on the incident. Further, the statement read in part, “Our hearts go out to the passengers and crew, first responders and all those affected.”
As you might expect, Boeing is sailing in some very stormy seas at the moment. It’s imperative that the company confront these fundamental flaws and earn back the confidence of regulators, as well as the general public. The crash serves as a pivotal moment that could determine not just Boeing’s immediate future but its long-term viability in the aerospace industry.