In an analysis, the Cable News Network has reported that between lawsuits, potential fines, and lost business, airplane manufacturer Boeing could lose billions more dollars from the blowout. But the bad news didn’t stop there. In February, pilots on a United Airlines 737 Max reported that the flight controls jammed as the plane landed in Newark. The National Transportation Safety Board is investigating. Two weeks ago, the Federal Aviation Administration flagged safety issues with the de-icing equipment on 737 Max and 787 Dreamliner models that could cause engines to lose thrust. The FAA is allowing the planes to continue flying and Boeing said the problem does not pose an immediate safety risk.
Then, last week, Boeing got more bad news: The NTSB said Boeing has not yet provided the company’s records documenting the steps taken on the assembly line for the door plug replacement on the Alaska Airlines jet. Boeing’s reason: Those records don’t exist. And the FAA said Boeing’s safety and quality problems extend beyond its inability to produce paperwork. Reviewing Boeing’s production workflow and standards, FAA Administrator Mike Whitaker said Monday that the regulator found issues with “really important” aspects of Boeing’s manufacturing and assembly line.
“It wasn’t just paperwork issues,” Whitaker said at a news conference. “Sometimes, it’s the order the work is done. Sometimes it’s tool management. It sounds kind of pedestrian, but it’s important in a factory that you have a way of tracking your tools effectively so that you have the right tool and that you know you haven’t left it behind.” Boeing has said it is working on several of the issues Whitaker identified. The FAA has instructed the plane maker to submit a plan to fix its production problems by late May. “Based on the FAA audit, our quality stand-downs, and the recent expert panel report, we continue to implement immediate changes and develop a comprehensive action plan to strengthen safety and quality and build the confidence of our customers and their passengers,” Boeing said in a statement. “We are squarely focused on taking significant, demonstrated action with transparency at every turn.” Boeing’s (BA) stock, which fell 3% Monday on the news about the terrifying LATAM flight, is down another 4.5% Tuesday. It’s the second-worst performer in the S&P 500, behind only Tesla.
But Boeing’s awful start to 2024 is about much more than its stock price. The company came into the year with an already bruised reputation. Restoring the confidence of airlines, regulators and passengers becomes more difficult with every new incident and bad headline.
(Source: CNN)
