No Company is Immune: Boeing under increased scrutiny
Boeing aiming for space despite more groundings
In the realm of corporate giants, few names have commanded as much respect and influence as Boeing. For decades, the aerospace juggernaut has flown millions of passengers and cargo across the globe. Yet, recent events have cast another stark shadow, challenging the notion that no company is too big to fail.
I wrote about this topic because there are many lessons to be learned, not only for Boeing, but across its supply chain. Few responsibilities carry as much weight as ensuring human safety. Boeing’s story serves as an important case for anyone studying leadership. During my Master’s studies, I delved into Greg Brenneman’s fascinating story of how he saved Continental. Check out the link, it’s well worth it. So what’s going on at Boeing?
In January, Reuters reported that U.S. regulators temporarily grounded 171 Boeing 737 MAX 9 jetliners for safety checks. The decision followed a cabin panel blowout that forced a new Alaska Airlines jet carrying passengers to make an emergency landing. Two months later, CEO David Calhoun announced he would leave the company.
Calhoun replaced Dennis Muilenburg, who Boeing fired in 2019 after two 737 Max planes crashed, killing 346 people in total between an Ethiopian Airline and a Lion Air flight. Global regulators subsequently grounded the 737 Max after the second accident.
According to the PBS publication, Frontline, and following the 737 max investigations, the Department of Justice announced that Boeing would pay a $2.5 billion settlement, resolving a DOJ charge that the company had conspired to defraud the Federal Aviation Administration’s Aircraft Evaluation Group.
What caused the 737 Max planes to crash?
Bill George, writing for Harvard’s Working Knowledge publications wrote that flaws in the software design that took flight control away from the pilots without their knowledge based on data from a single sensor. The system known as Manoeuvring Characteristics Augmentation System, or MCAS had been altered by Boeing in 2016, that’s according to the Institution of Chemical Engineers (IChemE).
In March of 2016, during the development of the MAX 8, Boeing approved changes to the MCAS which would increase its authority to push the airplane’s nose down under certain conditions. Following the redesign, Boeing immediately removed all references to MCAS from their Flight Crew Operations Manual (FCOM). This decision to remove MCAS from the pilot handbook was authorised by the FAA and no questions or concerns were raised. IChemE
Whistleblower speaks out against Boeing
In the wake of a series of damning revelations, Boeing finds itself embroiled in a maelstrom of controversy, and its reputation tarnished. Allegations of negligence, malpractice, and systemic failures have shaken the foundation of the company. The company is contending with FAA probes following a March 2024 investigation that found dozens of safety concerns with 737 Max production, in addition to the deaths of multiple Boeing whistleblowers.
The saga began with whispers of dissent, as whistleblowers emerged from the shadows to shed light on the dark underbelly of Boeing's operations. Santiago Paredes, a former quality controller for Spirit, one of Boeing’s main suppliers said that he grew a fear of flying. “I was finding a lot of missing fasteners, a lot of bent parts, sometimes even missing parts. I said it was just a matter of time before something bad happened.” Huffpost.
Exclusive: The Boeing whistleblower testified for 12 hours before his suicide. Here’s what he saw at the planemaker that alarmed him - Fortune
On 29 February 2024, the FAA gave Boeing clear direction to make immediate improvements to its quality and safety processes. Boeing must commit to real and profound improvements. Making foundational change will require a sustained effort from Boeing’s leadership, and we are going to hold them accountable every step of the way. FAA Administrator Mike Whitaker
Rebuilding a reputation
Boeing’s founder, William Edward Boeing was a pioneer. Now, it’s up to the current Boeing leadership to pioneer a way to improve quality and to meet stringent safety requirements.
Despite these challenges, Boeing has pledged to address the issues and rebuild its reputation. The FAA has called for immediate improvements to Boeing's quality and safety processes, signalling a commitment to holding the company accountable. Boeing's leadership faces the daunting task of implementing fundamental changes to regain trust and ensure the safety of its products. All eyes are now on Boeing Starliner's historic 1st astronaut launch.
Boeing’s story serves as a reminder that regardless of the industry, prioritising safety should be paramount right the way across the supply chain. Hopefully, Boeing can exhibit robust leadership, glean lessons from their errors, and restore their reputation and safety record.