Boeing’s Reputation is in Shambles – How Has it Survived?

The American icon, Boeing, continues to take a beating in the market. The firm’s troubles span the gamut of issues ranging from quality control to criminal negligence. The tale of how Boeing got to this point is full of twists and turns worthy of a mystery novel. Here’s how one of the best-known and most respected companies in American history fell off, and what its execs are doing to try and save it.

Cracks in the Empire

Boeing has a long and celebrated history in American aviation. The company has designed, created, and delivered some of the most iconic planes in history. From its humble beginnings during the First World War to its unwavering support for the troops in WWII, Boeing has been a name synonymous with American excellence and technical prowess.

Recently, there has been a combination of plane failures, whistleblowers coming forth, and bad press that has shed some light on the inner workings of this conglomerate. Sadly, the light revealed an unsustainable workplace drought with dangers, shortcuts, a lack of quality control, and an atmosphere of silence.

These reports suggest that Boeing has shied away from its legacy as a quality aircraft manufacturer and, through a combination of missteps, became more focused on corporate greed and shareholder profits over the safety of its passengers. From recalls to leaving entire items not bolted to the craft, Boeing is in the midst of a corporate meltdown. Here’s how the recent troubles started, what’s known, and why these issues are only the beginning of a long, troubled path for the belligerent airplane manufacturer.

Boeing Woes Begin

Boeing’s issues began after two fatal crashes of the 737 Max 8 resulted in the death of hundreds of passengers. The first crash involved Lion Air Flight 610 and occurred on October 29, 2018. This horrific incident was followed by Ethiopian Airlines Flight 302 on March 10, 2019. These incidents resulted in alarm bells and heightened interest in Boeing’s quality control standards.

In 2020, the House released a safety report on Boeing that shed light on the company’s shortcuts and continued downplaying employee concerns. The reports concluded that the two crashes were avoidable and that Boeing’s lack of quality control was the culprit. It also pointed out how air safety regulators failed to play their role in preventing this tragedy.

These issues caused the fleet to be grounded and undergo safety recertifications. These added steps were meant to prevent future quality-related issues. However, they only postponed further scrutiny as Boeing’s lack of quality control was set to become headline news shortly.

A New Year – Even More Problems

On January 5, 2024, Boeing customers were shocked when an emergency door port flew off the plane mid-flight. The flight was heading to California from Oregon and had only been in the air for around 20 minutes before the incident occurred. Online video showed a huge doorway in the fuselage with items being sucked out of the pressurized cabin.

Witness reports explained that, without warning, there was a sudden loud pop, and the door port was gone. The resulting hole and suction caused multiple items to exit the craft midflight. Thankfully, one was sitting in 26a or 26b at the time, or they could have met the same fate as many passengers’ cell phones and other items sucked from the cabin during the incident.

Notably, this isn’t the first time a hole in the fuselage of an aircraft has caused major disruptions. In 2018, a woman perished after being partially sucked through a hole in a fuselage mid-flight. Another incident occurred in 1988 when a woman was sucked out of a plane when the roof was torn off. Each of the incidents resulted in more oversight and regulations. However, enforcement appears to have been left up to the manufacturers in many instances.

Investigations Reveal Troubled History

Investigations that followed the incident have revealed a troubled history of neglect and cost-cutting as the main culprits. In this last incident, the investigators revealed that the port that flew off the vehicle had been removed for maintenance in the Boeing Renton factory. It’s here that four bolts were left uninstalled, resulting in the port breaking free mid-flight.

The same report demonstrated that the crew and airline company were aware that the door panel was problematic. The panel had previously caused issues after it set off alarms during 3 earlier flights. These warnings were not completely ignored, as the plane was banned from making transatlantic flights. However, these restrictions did little to protect the passengers.

Federal Investigations

Federal investigators have been investigating Boeing recently to see where the firm has taken a turn for the worse. The latest round of investigations into the manufacturer’s processes and quality control revealed a litany of issues. The FAA and the National Transportation Safety Board (NTSB) launched investigations into its manufacturing facilities.

Their results were eye-opening. Specifically, Boeing failed 33 out of 89 product audits. Additionally, the inspectors found multiple cases of missing bolts on aircraft and instances where employee concerns were shelved.

A History of Issues

The latest report highlights concerns raised in the 2021 Senate report on Boeing’s quality. The report explained that Boeing had created an atmosphere of neglect, with employees shunned if they pointed out safety or quality concerns. This report was compiled following the testimony of seven whistleblowers.

The whistleblowers explained how the manufacturer rushed production to meet delivery deadlines. It also delved deep into crucial factors such as us parts storage, testing, and a lack of qualified staff. Despite the warnings, Boeing’s 737 Max 9 planes were eventually cleared with 94% reentering service.

Whistleblowers Start Dying

One of the main reasons why the Boeing scandal continues to make headlines is that whistleblowers keep coming up dead. Already, out of 10 potential whistleblowers, 2 have met untimely deaths surrounded by mysterious circumstances. Notably, the incidents don’t directly link to Boeing, but they seem to work in the company’s favor.

John Barnett

John Barnett was the first whistleblower to meet an untimely demise. The 62-year old ex Boeing employee served as the company’s quality control manager for 32 years. Here, he oversaw all quality-related issues, knew how they were handled or not, and what executives felt needed to be done about keeping quality standards in place.

Barnett explained the atmosphere of shortcuts and profit gouging that was Boeing over the last decade. He had deep insight into the firm’s actions and attempts to stifle anyone who would bring up these life-threatening issues. Sadly, his vigor to tell his story and search for justice may have led to his untimely death.

On March 9th, 2024, Barnett was scheduled to testify against Boeing in court. However, he never showed up. He was later found with a gunshot wound to his head in his Ram pickup in the parking lot of the hotel he stayed in for the trial. The investigation is still ongoing, but it was initially ruled a suicide.

The fact that Bennet knew so much about Boeing’s past decisions and their efforts to cut corners has many people believing that his suicide was something else. His close friends and family have stated that he wasn’t suicidal at all and that he was eager to set the record straight on Boeing. Unfortunately, he never got the chance to do it.

Joshua Dean

Joshua Dean is the latest whistleblower to die under mysterious causes. Dean was a 45-year-old former quality auditor for Spirit AeroSystems. This firm created a variety of parts for the Boeing 737 Max 9 and assisted in the assembly process. During his time as quality control chief, Dean witnessed a complete degradation of Boing’s quality checks.

Dean spoke on how employees who would bring concerns to management would receive harsh punishments and were not taken seriously. Sadly, Dean was pronounced dead after he caught a mysterious infection that spread throughout his body in hours.

A Climate of Fear

Discussing the recent deaths and the atmosphere surrounding the trial, Brian Knowles, a former attorney for both deceased witnesses, stated that the two were “heroes.” He described how they put their lives at stake to shed light on shady practices by one of the largest firms in America.

He also took a moment to discuss how their deaths could affect the remaining whistleblower’s decision to take the stand. To that extent, he explained that these developments create more stress for potential whistleblowers and could result in some backing out of testifying out of fear for their lives.

He also stated that the ones who stood up for what is right are the true heroes needed. Notably,  one whistleblower described the company’s actions as a “criminal coverup” prior to the mysterious deaths of ex-employees. Now, public opinion is shifting as more people are curious about what is going on behind the scenes at Boeing.

More Whistleblowers

The list of whistleblowers continues to shorten but there remains more than enough to help demonstrate how Boeing purposely dropped its quality control to drive profits. The current whistleblowers include Sam Salehpour, Ed Pierson, Shawn Pruchnicki, PhD, and Joe Jacobsen. These individuals have held quality-related or management positions in the firm during the degradation in quality and their insight will help to provide a clear picture of what occurred.

How Can Boeing Survive This Crisis?

As you delve deeper into the chaos that is Boeing as of late, it’s easy to see why many people are curious about the firm’s strategy to survive. The company has had a relative duopoly with Airbus for decades which has helped it remain relevant and ward off any competitors. Now, the company needs to focus on rebuilding consumer trust. Here’s how execs believe it could do that.

The first step Boeing needs to take is to provide full transparency on the issues. It doesn’t help to continue to cover up past problems while not working on fixing the root causes of these issues. Boeing needs to connect with its employees, buyers, and passengers in an honest way that demonstrates progress and helps to alleviate future concerns.

Boeing needs to do a complete 180-degree turn on how it handles employee quality concerns as part of this salvation plan. To rebuild trust with customers, regulators, and the public a renewed commitment to quality control and safety needs to be implemented. The firm should leverage innovative solutions to drive efficiency and reduce employees’ workloads.

The firm will need to take responsibility for its actions to date and make immediate changes that the public can recognize to build confidence. Most importantly, Boeing needs to stop having ex-employees who are on their way to testify against the firm suddenly die. These mysterious deaths feed into the theory that Boeing will do anything to protect its profits

Boeing Stock 

All of these events have led to some negative stock movements for Boeing. The company has seen a direct drop in business alongside its headlining failures. Specifically, the firm has lost ground against its main competitor, Airbus, which is now the top aircraft manufacturer in the US market.

Reports show that Airbus surpassed Boing as the main aircraft manufacturer last year. The firm secured 9,985 aircraft orders last year, while Boeing had 8,978 orders. Notably, most of these deals were government contracts that depended heavily on personal relationships and influence alongside the product. As such, they demonstrate how intertwined the government and the airline industries remain.

Boeing’s stocks were hit hard due to the negative press and concerns over the company’s future direction. Specifically, Boeing recorded +$2B in losses in 2023. This loss was a massive change from the +$12B in profits it secured the year prior. Sadly, these losses continue to exacerbate as more issues and untimely deaths occur.

Will Boeing Survive? Only Time Will Tell

Given the sheer number of incidents and the growing public concern surrounding Boeing’s quality control measures, it’s easy to see these losses as just the beginning of a long hard year for the company. Aside from a highly publicized trial with witnesses already showing up dead, there is the looming prospect of another plane incident. All of these factors keep Boeing as a topic of interest for traders across the globe.

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