Boeing’s latest probe deepens manufacturing crisis of confidence
Boeing has been in crisis mode ever since the near-catastrophic accident on a 737 Max 9 in early January — and there’s little sign it’s catching a break anytime soon as the next investigation looms — this time involving the flagship 787 Dreamliner model. The company disclosed on Monday that it had alerted authorities to potentially incomplete inspections on the long-haul jetliner, setting in motion an investigation by the US Federal Aviation Administration. While the latest mishaps don’t create an immediate flight safety issue, they will disrupt factory operations as Boeing conducts tests on aircraft being assembled. Potentially the most damaging revelation was the suspicion that workers at the factory in North Charleston, South Carolina, may have falsified records to cover up their shortcuts. A review revealed that “several people” had not performed a required test during the wing attachment to the aircraft body, but recorded that work as having been completed, according to Boeing. The latest twist risks worsening a crisis of confidence that has thrown the company into turmoil since a fuselage panel blew off a nearly new 737 Max plane mid-flight on Jan. 5. The FAA’s new probe also comes after whistleblowers told US lawmakers last month that the planemaker prioritizes production rates over safety and quality. While Boeing has pushed back on that charge, the accusations and investigations add to a narrative that one of the most venerable US manufacturers has lost its way. The panel incident created a chain reaction at Boeing and the wider aviation industry, pushing out senior management and forcing the company to slow down production. That, in turn, means fewer planes for airlines clamoring for more jets, and a massive cash drain at Boeing, which heavily relies on 737 shipments to bolster its earnings. Boeing shares, already among the worst performers on the Down Jones Industrial Average this year, took another hit on Monday, slumping as much as 2.8% after the announcement and extending the drop since January to 32%.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2024-05-08/general/boeing2019s-latest-probe-deepens-manufacturing-crisis-of-confidence
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Boeing’s latest probe deepens manufacturing crisis of confidence
Boeing has been in crisis mode ever since the near-catastrophic accident on a 737 Max 9 in early January — and there’s little sign it’s catching a break anytime soon as the next investigation looms — this time involving the flagship 787 Dreamliner model. The company disclosed on Monday that it had alerted authorities to potentially incomplete inspections on the long-haul jetliner, setting in motion an investigation by the US Federal Aviation Administration. While the latest mishaps don’t create an immediate flight safety issue, they will disrupt factory operations as Boeing conducts tests on aircraft being assembled. Potentially the most damaging revelation was the suspicion that workers at the factory in North Charleston, South Carolina, may have falsified records to cover up their shortcuts. A review revealed that “several people” had not performed a required test during the wing attachment to the aircraft body, but recorded that work as having been completed, according to Boeing. The latest twist risks worsening a crisis of confidence that has thrown the company into turmoil since a fuselage panel blew off a nearly new 737 Max plane mid-flight on Jan. 5. The FAA’s new probe also comes after whistleblowers told US lawmakers last month that the planemaker prioritizes production rates over safety and quality. While Boeing has pushed back on that charge, the accusations and investigations add to a narrative that one of the most venerable US manufacturers has lost its way. The panel incident created a chain reaction at Boeing and the wider aviation industry, pushing out senior management and forcing the company to slow down production. That, in turn, means fewer planes for airlines clamoring for more jets, and a massive cash drain at Boeing, which heavily relies on 737 shipments to bolster its earnings. Boeing shares, already among the worst performers on the Down Jones Industrial Average this year, took another hit on Monday, slumping as much as 2.8% after the announcement and extending the drop since January to 32%.<br/>
