Last month, Boeing proudly celebrated a significant achievement: carrying its billionth passenger aboard the 787 Dreamliner. This milestone is particularly impressive, considering the aircraft model was only launched 14 years ago. However, the joyous occasion has been overshadowed by today's tragic incident involving Air India in Ahmedabad, raising serious concerns within the aviation community.
Prior to the unfortunate crash, the 787 Dreamliner had established itself as a staple of intercontinental travel, boasting an exemplary safety record. This incident starkly contrasts with the troubled history of another Boeing model, the 737 Max. The 737 Max was previously in the spotlight following fatal crashes in Indonesia and Ethiopia, which resulted in hundreds of fatalities in 2018 and 2019. A software malfunction was identified as the cause of those crashes, leading to a worldwide grounding of the model for 18 months.
As of now, there is no indication of a fault on Boeing's part concerning the recent crash in India. The investigation is ongoing, and a clearer picture will emerge once the plane's black boxes—vital electronic recording devices that capture critical flight data—are retrieved. Various theories have been proposed regarding the cause of the crash; however, a seasoned pilot I spoke with emphasized that manufacturer faults rarely lead to fatal incidents in modern aviation. He pointed out that, apart from the notable exceptions like the 737 Max crashes, most aviation accidents tend to be attributed to human error in the cockpit.
It's essential to recognize that when flying commercially, passengers are almost invariably on either a Boeing or an Airbus model, as the aircraft manufacturing industry operates predominantly as a duopoly. Despite this, Boeing's name has become associated with yet another tragic aviation incident. The company expressed its condolences to the passengers, crew, first responders, and all affected by the tragedy. Boeing is currently collaborating with Air India to gather more information regarding the incident.
As stock markets opened in New York on Thursday, Boeing's shares experienced a significant decline, dropping 5%. This tragedy adds to the mounting challenges for a company that faced nearly a billion dollars in losses each month last year due to a combination of safety crises, quality control issues, and a damaging seven-week workers' strike. In a recent incident, Boeing was compelled to pay $160 million in compensation after one of its doors detached mid-flight on an Alaska Airlines flight in 2024. Prior to that, the company reached a $428 million settlement with Southwest Airlines for the financial repercussions of the long-term grounding of its 737 Max fleet.
Beyond its financial struggles, Boeing has been under scrutiny regarding its safety practices. In April, the company reported improved operational performance as a result of its ongoing commitment to safety and quality. However, concerns persist. A former employee alleged that workers under pressure were fitting sub-standard components onto aircraft during production. John Barnett, a quality control manager with over 30 years of experience at Boeing, tragically took his own life last year, and Boeing has denied his claims. Another whistleblower, engineer Sam Salehpour, testified before US politicians about facing harassment after raising safety concerns. Boeing maintains that retaliation against whistleblowers is strictly forbidden and claims to have seen a more than 500% increase in employee reports since January, suggesting progress towards a healthier reporting culture.
Boeing has also been entangled in legal battles stemming from the crashes in Indonesia and Ethiopia. Last month, the company narrowly avoided criminal prosecution by reaching an agreement with the US Department of Justice (DoJ). In a move that disappointed victims' families, the DoJ announced that Boeing would admit to conspiracy to obstruct and impede an investigation by the US Federal Aviation Administration, resulting in over $1.1 billion in fines.
The challenges faced by Boeing have led to significant changes in its executive leadership over the past couple of years. The new CEO, Kelly Ortberg, returned from retirement a year ago with a mission to revitalize the struggling company. He has committed to enhancing Boeing's safety culture and recently expressed confidence in the aviation giant's imminent return to profitability. However, today's tragic news presents yet another hurdle for Ortberg as he navigates the future of Boeing.
