In this article, Boeing is facing another challenging year. A year ago, the company faced safety and quality concerns when a fuselage panel covering an unused emergency exit door blew out midair from a nearly new Boeing 737 Max 9 operated by Alaska Airlines. Although the incident caused fear among passengers, no serious injuries occurred, and the plane safely landed back in Portland, Oregon.
A preliminary report by the National Transportation Safety Board revealed that key bolts were not installed before the aircraft left Boeing’s Renton, Washington, 737 factory, further damaging the reputation of the prominent U.S. exporter. Boeing’s stock price has dropped by over 30% in the past year, while the S&P 500 has seen a nearly 27% increase.
Over the last 12 months, Boeing’s leadership has implemented significant changes, including appointing a new chief executive and enhancing training for factory workers, many of whom are new to the company. Boeing has made progress by conducting random quality audits at factories, reducing defects in 737 fuselages, and addressing feedback from employees.
Following the incident, the Federal Aviation Administration has increased oversight of Boeing, limiting the production of its 737 Max jets. FAA chief Mike Whitaker emphasized the need for a cultural shift at Boeing towards prioritizing safety and quality over profits, stating that sustained effort and commitment are necessary for the company’s turnaround.
Boeing has not reported an annual profit since 2018, a year marked by two fatal crashes involving its 737 Max aircraft. The grounding of the planes worldwide for nearly two years highlighted flaws in Boeing’s quality control, affecting deliveries of various aircraft models.
Since 2019, Boeing has incurred significant losses, prompting the new CEO to focus on improving production efficiency and quality. The company’s recent efforts include raising funds to address the crisis, reducing its workforce, and reviewing its business portfolio to streamline operations.
The new CEO, Kelly Ortberg, has been actively engaging with Boeing’s operations, emphasizing the importance of stabilizing production and enhancing delivery performance. Despite challenges such as a recent strike and production disruptions, Boeing aims to strengthen its position in the aerospace industry under Ortberg’s leadership, with a focus on long-term transformation rather than short-term fixes.
