Fresh disaster strikes Boeing's plan to rebuild image amidst controversy: another Indian aircraft crash
Boeing's sitting in a pickle once again after another tragic crash of a passenger plane. This time, it's the 787 Dreamliner on Air India Flight 171, claims the lives of over 240 passengers and crew. And guess who's back under the microscope? You got it, Boeing.
The ensuing chaos is nothing new for the aviation giant, having battles its safety woes since the 2018 Lion Air 737 MAX crash and the 2019 Ethiopian Airlines crash. These disasters took the lives of 346 innocent souls and grounded the 737 MAX fleet for nearly two years.
As the dust settles on Flight 171, questions about Boeing's safety standards have resurfaced alongside demands for answers. A closer look at the planes' wings, however, suggests that the flaps weren't set in the normal take-off position. Boeing, as expected, has offered its condolences and support to Air India while leaving the investigations to the local authorities.
Over the past few years, Boeing has faced major financial and reputational damage due to these flaws in its aircraft design, problems with FAA certification processes, and minimized pilot training requirements. Reported losses since 2019 exceed $35 billion, with a 2024 loss of $11.8 billion. In an attempt to clean up its act, Boeing has struck a $1.1 billion deal with the U.S. Department of Justice to avoid prosecution related to the 2018-2019 crashes. The company remains under legal and regulatory oversight.
Unfortunately for Boeing, the recent Air India crash and the increase in global airline accidents in 2024 (47 accidents, including 12 hull losses and 187 fatalities) serve as painful reminders of the industry's ongoing safety challenges. In response, Boeing has focused on cultivating a stronger safety culture through increased collaboration, expanded safety training, and the appointment of safety management system champions.
But, the index of trust meters seems to be stuck on "unreliable" for Boeing. The company has an arduous road ahead if it wants to rebuild its tarnished reputation. Only time will tell whether its commitments to enhancing safety practices and culture will be enough to appease passengers, regulators, and investors.
Boeing's financial struggles continue as the aviation industry faces ongoing safety challenges, with the recent Air India crash and the increased number of global airline accidents in 2024 adding to the company's woes. The company's repeated involvement in tragic crashes has raised questions about its safety standards in the aerospace sector, potentially long-term impacts on their reputation and future business within the finance industry.
