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Boeing Crisis

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Boeing's situation is becoming increasingly difficult!

Since the beginning of this year, Boeing has experienced frequent safety accidents, which have repeatedly damaged its reputation and marketing performance.
In the aviation industry, incidents such as sudden diving and door stopper detachment of Boeing aircraft continue to escalate; Two American astronauts have been stranded on the International Space Station aboard the Boeing "Interstellar" spacecraft due to multiple malfunctions, and their return date is uncertain
Royal Dutch Airlines announced on the 27th that it will no longer use aircraft produced by Boeing in the coming years.
At the same time, there is constant good news about the C919. On August 28th, Air China and China Southern Airlines simultaneously received their first C919 aircraft at the COMAC General Assembly and Manufacturing Center Pudong Base. At 11:23 on August 29th, a domestically produced C919 aircraft with registration number B-919X from Air China landed smoothly at Beijing Capital International Airport and slowly taxied through the "Watergate" symbolizing the highest honor in the civil aviation industry. The first domestically produced C919 large aircraft of Air China has officially joined the fleet.
Boeing's Vice President of Civil Aviation Marketing, Howard Ren, believes that the C919 aircraft has become a competitor to Boeing. Check out the latest report →
Since the beginning of this year, Boeing has experienced numerous accidents.
Boeing, please answer, what is safety
·On August 19th, Boeing received two more pieces of bad news: three of its 787 aircraft were required by the Federal Aviation Administration of the United States to undergo inspections by global airlines due to major safety hazards, and the 777-9X aircraft was suspended from test flights due to a malfunction in its fuselage components.
·On July 10th local time, a Boeing 737-800 aircraft of American Airlines flying from Florida to Arizona had a tire blowout while taxiing on the runway, causing a large amount of smoke and fire near the landing gear. At the time of the incident, there were 174 passengers and 6 crew members on board the plane. Fortunately, the accident did not cause any casualties.
△ Fox News Network, USA
·On July 8th, a Boeing 757 aircraft of United Airlines took off from Los Angeles International Airport and a tire on the plane came off.
△ ABC News Program
·The Federal Aviation Administration of the United States stated on July 8th that it has requested inspections of 2600 Boeing 737 aircraft due to the possibility of passenger oxygen masks malfunctioning in emergency situations. The management bureau stated that the agency has received multiple reports of displacement issues with the passenger service component oxygen generator in the relevant aircraft models.
Reuters
·On June 5th, Boeing's first manned test flight of the "Starliner" spacecraft was launched from Cape Canaveral Space Force Base in Florida, USA, aboard the United Launch Alliance's "Atlas 5" rocket, carrying American astronauts Barry Wilmore and Sunny Williams to the International Space Station. The spacecraft arrived at the International Space Station on June 6th and was scheduled to depart from the station and return to Earth on June 14th. However, due to issues such as propulsion failure and helium leakage, the return time has been repeatedly postponed.
·In March of this year, a Boeing 777-200 aircraft flying from United Airlines to Osaka, Japan, experienced a tire detachment accident while taking off from San Francisco, USA, and several cars in the airport staff parking lot were smashed.
△ The New York Post
·On March 15th, a United Airlines Boeing 737-800 aircraft discovered a missing panel on the exterior of the fuselage after landing.
·On March 11th, a Boeing 787-9 aircraft operated by Chile based Latham Airlines experienced a "technical malfunction" during flight, with the fuselage shaking violently and causing multiple injuries.
·On March 4th, a United Airlines Boeing 737 aircraft was forced to return shortly after takeoff due to an engine fire.
·In January of this year, a Boeing 757 aircraft operated by Delta Air Lines was preparing to take off in Atlanta, the capital of Georgia. During taxiing, one of the wheels on the front landing gear suddenly detached and rolled off the runway.
△ Fox News Channel News in the United States
·At the beginning of this year, a Boeing 737 MAX 9 aircraft operated by Alaska Airlines had an accident shortly after takeoff, with a door stopper on the side of the cabin falling off.
△ American Cable News Network
Boeing's situation is becoming increasingly difficult
Aerospace giant Boeing is experiencing a 'cold winter'.
On August 27th local time, Royal Dutch Airlines received its first Airbus aircraft for short haul flights. The company stated that in the coming years, Royal Dutch Airlines will invest 7 billion euros in a new fleet and will no longer use aircraft produced by Boeing.
It is reported that the company plans to use Airbus A321neo aircraft to replace the currently in service Boeing 737 passenger planes, and use Airbus A350 aircraft to replace existing Boeing planes and passenger planes used for long-distance flights.
Boeing's situation has become increasingly difficult. The new spacecraft "Interstellar Airplane" failed to carry passengers back as expected; The civil aircraft department, which is the main business of the company, is facing difficulties due to quality issues; The research and development capabilities in the aerospace field have significantly declined, and the losses have gradually increased as a result
Boeing CEO Kelly Altberg spoke with NASA Administrator Nelson on the 24th and informed him that Boeing "will continue to develop the 'StarCraft' aircraft.
Previously, NASA commissioned Boeing to develop a spacecraft to transport astronauts to the International Space Station, with a contract amount of $4.2 billion. According to the plan, Boeing's spacecraft is required to perform a maximum of six missions to transport astronauts to the International Space Station.
However, the research and development work has encountered difficulties. In 2014, Boeing received an order and initially planned to conduct manned flights in 2017. However, in reality, the first manned flight was delayed by 7 years. Due to the continuous increase in research and development expenses, Boeing has suffered a cumulative loss of approximately $1.6 billion. Some people are concerned that if Boeing decides to continue developing spacecraft, the cost will further increase.
In 2023, Boeing's defense and aerospace division will have sales of approximately $24.9 billion, making it the second largest pillar business after the civil aviation division (with sales of approximately $33.9 billion). If the aerospace business suffers setbacks and civil aviation is also sluggish, the company's operations will become even more difficult.
Boeing has also shown obvious flaws in its business beyond the 'interstellar passenger plane'.
Boeing participated in the development of large rockets through the Artemis moon landing program. However, NASA inspectors announced in early August that there were issues with Boeing's manufacturing quality management and other aspects, resulting in an increase of approximately $700 million in rocket development costs.
The civilian aircraft business is also struggling. The narrow body aircraft 737 MAX experienced a fuselage damage accident during its flight in January. The cause of the accident was that the factory workers forgot to secure the emergency exit door with a buckle. After the incident, Boeing began to slow down its production pace in order to improve production quality.
The development of the next generation large aircraft 777X has also been delayed. On August 19th, there were reports that the engine components of the test aircraft malfunctioned and the test aircraft stopped flying. The 777X is a large aircraft capable of carrying 400 people and is currently in the research and development stage. The goal is to deliver it by 2025, which is 5 years later than the original plan. About 20% of its body is produced by Japanese companies such as Mitsubishi Heavy Industries, so the development of this model has a significant impact on Japan's aircraft industry.
Military aircraft have also suffered losses due to prolonged development cycles. The cost of training aircraft and aerial refueling drones developed for the Air Force exceeded the budget.
Due to consecutive negative news reports in the civilian aircraft, defense, and aerospace sectors, Boeing's performance has continued to deteriorate, with only four quarters of profit after 2019. In the first half of 2024, Boeing only received 156 aircraft orders, compared to a net order quantity of 567 aircraft for the same period the previous year.
In early August, Otterberg had just taken office as the new CEO of Boeing. This new leader, who shoulders the heavy responsibility of revitalizing the aerospace giant, had to face the crisis at the beginning of his tenure.
[align center] News depth:

Solution | Where did Boeing get lost in the problem?

Beijing/San Francisco, August 22 (Xinhua) -- Boeing received two more pieces of bad news on the 19th: three of its 787 aircraft were required by the Federal Aviation Administration of the United States to undergo inspections by global airlines due to major safety hazards, and the 777-9X aircraft was suspended from test flights due to body component failures.
Since the beginning of this year, Boeing has experienced frequent safety accidents, which have repeatedly damaged its reputation and marketing performance. In the aviation industry, incidents such as sudden diving and door stopper detachment of Boeing aircraft continue to escalate; Two American astronauts boarded a Boeing "Starliner" spacecraft and entered the International Space Station. However, due to multiple malfunctions of the spacecraft, they have been stranded until now with an uncertain return date... The problems have erupted in a concentrated manner, and the safety loopholes behind them have actually existed for a long time. What are the problems? Please see the solution——
Frequent occurrence of major dangerous situations

On the 8th of this month, Boeing welcomed its new CEO, aviation industry veteran Kelly Altberg, who took office. The Financial Times commented that Boeing is facing one of the most severe crises since its establishment, and it is difficult for Ottoberg to lead the company to "take off again".
In addition to the Federal Aviation Administration's requirement for three Boeing 787 Dreamliners to undergo inspections and the suspension of test flight activities for the Boeing 777-9X, there are still many "embarrassments" for Boeing.
On June 5th, the Boeing StarCraft spacecraft was launched from Cape Canaveral Space Force Base in Florida, carrying two American astronauts to the International Space Station for the first manned test flight mission. Xinhua News Agency (photo provided by NASA)
A few days ago, NASA announced that it will decide by the end of August how to return two American astronauts stranded on the International Space Station to Earth. These two astronauts traveled to the International Space Station in June aboard Boeing's newly developed "StarCraft", but were unable to return due to multiple malfunctions in the spacecraft.
At the end of July, Boeing admitted to the US Department of Justice that the 737 MAX model had "conspired to defraud the US government" in the process of applying for airworthiness certification, paid fines, and promised to make improvements, avoiding reputational damage and heavier penalties that could result from a lengthy trial.
In October 2018 and March 2019, Lion Air Indonesia and Ethiopian Airlines suffered air crashes, both involving Boeing 737 MAX aircraft, resulting in a total of 346 fatalities. The investigation found that the cause of the accident was related to security design vulnerabilities in the new software system of the aircraft model. During the process of obtaining airworthiness certification, Boeing intentionally concealed this risk from the Federal Aviation Administration and did not enhance pilot training for the software system. In 2021, Boeing reached a three-year deferred prosecution agreement with the Department of Justice. However, in January of this year, after a 737 MAX aircraft operated by Alaska Airlines had its door plug come off during flight, the Department of Justice found Boeing in violation of the agreement and demanded that Boeing plead guilty to the agreement or be prosecuted.
Frequent safety issues have led to a significant decline in Boeing's sales performance. In the first half of 2024, Boeing only received 156 aircraft orders, compared to a net order quantity of 567 aircraft for the same period the previous year.
The hidden danger has already been planted

The frequent exposure of problems has actually planted hidden dangers. Peter Robinson, a senior American journalist and writer, argues in his book "Flying Blind" that Boeing's underlying culture is flawed, overly profit driven, while the engineer culture that emphasizes innovation, standards, craftsmanship, and quality is severely diluted.
Robinson believes that for a long time, in order to maintain the stock price, Boeing's profit distribution has been tilted towards shareholders, resulting in relatively insufficient investment in technological innovation. In order to compete with Airbus' new models, Boeing hastily launched the 737 MAX aircraft, laying hidden dangers for future flight safety. According to a former Boeing quality control manager, Boeing used to assign about 15 quality inspectors per flight, but later reduced it to only retaining one quality inspector per flight. Prior to the two 737 MAX air crashes, Boeing had received multiple reports of issues with the aircraft, but failed to respond promptly and take action.
On June 19, 2023, a Boeing 737 MAX aircraft performed a flight demonstration at the Paris Air Show held at Bourget Airport near Paris, France. Photo by Xinhua News Agency reporter Gao Jing
A recent review by Bloomberg also holds a similar view. The article states that in order to compete with Airbus, Boeing should indeed launch a new aircraft, but this should be a completely redesigned new aircraft, rather than a "patched" new model based on the 737.
The article suggests that new aircraft need to be equipped with a new generation of high bypass ratio turbofan engines. This type of engine can significantly reduce energy consumption, improve aircraft economy, and is also one of the main selling points of the new aircraft. But the size of the engine duct has significantly increased, which is not compatible with the originally designed low body of the 737 model. Therefore, the 737 MAX underwent a modification, which resulted in a change in the aircraft's center of gravity. In certain situations, it is prone to stall due to excessive elevation angles during flight. Therefore, the 737 MAX model has been equipped with the Mobility Characteristics Enhancement System (MCAS) to address this vulnerability. The defects in this software are related to two air disasters in 2018 and 2019.
The article states that Boeing initially chose the solution of "new wine in old bottles" because it was more cost-effective.
To save costs, Boeing will also sell a large amount of its core component production business and switch to outsourcing. Since the beginning of this year, several whistleblowers have successively exposed issues with Boeing's quality and safety controls.
How to rebuild reputation

To rebuild the company's reputation, we must fulfill our commitment to producing high-quality and safe commercial aircraft. At the beginning of his tenure, Ottoberg said in an open letter to employees.
Otterberg's predecessor Dave Calhoun also emphasized the importance of safety on multiple occasions. Calhoun was appointed as the head of Boeing after the plane crashes in 2018 and 2019, and was once considered to have taken on a "mission at the critical moment". At that time, the company also established a new safety committee to develop new safety standards and procedures.
On June 18, 2024, in Washington, D.C., then Boeing CEO Dave Calhoun attended a congressional hearing on "Boeing's Broken Safety Culture". Calhoun acknowledges that the company's safety culture has flaws, but insists that the company is improving and committed to enhancing product safety performance. Photo by Xinhua News Agency reporter Liu Jie
However, after the Boeing passenger plane door fell off in mid air this year, Calhoun resigned in disappointment. In June, he admitted during a congressional hearing that Boeing's safety culture had flaws. In the investigation of the door stopper falling off in mid air, some Boeing workers bluntly stated that Boeing's so-called safety culture is "garbage".
According to reports, after taking office, Otterberg immediately faced multiple tasks, including completing Boeing's acquisition of key component supplier Unwind Aviation Systems; Negotiate with a mechanics union in the Seattle area to avoid the latter's strike in September; Revitalize the production of MAX series aircraft, etc.
It is inevitable that Rui Aviation Systems Company will undertake 70% of the fuselage structure production tasks for the 737 MAX model, which was originally part of Boeing's parts production business, but was later spun off and established as a separate company.
Whether the Boeing leadership, represented by Ultraberg, can take this opportunity to recalibrate and uphold the safety bottom line, and lead the company through the crisis, remains to be seen.
[align center] More news:

The time has been set! Officially flying

At 11:23 am on August 29, 2024, a domestically produced C919 aircraft with registration number B-919X from Air China landed smoothly at Beijing Capital International Airport and slowly taxied through the "Watergate" symbolizing the highest honor in the civil aviation industry. The first domestically produced C919 large aircraft of Air China has officially joined the fleet.
According to data from the Feichangzhun App, China Southern Airlines' first C919 was scheduled for transfer flight CZ1919 (Shanghai Pudong Guangzhou Baiyun) today. The aircraft took off from Shanghai Pudong Airport at 8:17 am and landed at Guangzhou Baiyun Airport at 10:15 am. The aircraft registration number is B-919J.
China Southern Airlines stated that it is expected that its first C919 aircraft will complete demonstration verification in mid September, obtain commercial flight operation qualifications, and officially operate the Guangzhou Shanghai Hongqiao route on September 19th. It is reported that the newly introduced C919 aircraft by China Southern Airlines this year will be located in Guangzhou, the main base of China Southern Airlines with the strongest support capability. The flight routes will cover cities such as Beijing, Shanghai, Chengdu, and Xi'an from Guangzhou. In the future, as the fleet size expands and operational experience accumulates, China Southern Airlines will gradually deploy the C919 model to its subsidiary companies for operation.
Photo by Li Gongsheng from the Shanghai Stock Exchange News
Debut completed

officially joined the fleet

The captain of Air China, Wang Yan, who flew the C919 this time, told reporters, "Our domestically produced large aircraft C919 is a very excellent model. It has reached a very high level in terms of design and performance, as well as the feeling of control and human-computer interaction. I am proud of the C919 model, and I am also proud to be a pilot of the C919
The C919 aircraft is an important milestone in the development of China's large aircraft industry. The introduction and operation of the C919 by Air China, allowing domestically produced large aircraft to soar in the blue sky, is a vivid practice of Air China's mission to continue carrying the flag and demonstrate its responsibility in the new era. It is an important part of Air China's efforts to build a world-class enterprise and promote high-quality development.
In response to the introduction of the C919 domestically produced large aircraft, Air China has always placed safety at the forefront. It has established four professional docking groups with COMAC, including maintenance, personnel training, ground support, and operation control, to select business backbones to participate in aircraft selection, production supervision, personnel training, and operation preparation. Establish the C919 flight squadron, complete the first batch of pilot conversion training with high quality, successfully complete the systematic training of dispatchers, flight attendants, safety officers, and ground support personnel, solidly promote the construction of maintenance and support capabilities, comprehensively create service quality risk control and operation service standards, carefully formulate operation and support plans, and make full preparations for the smooth introduction and safe and efficient operation of C919.
The C919 is a new aircraft model, and we not only need to master operational skills, but also have a deep understanding of its principles and underlying knowledge. In the theoretical learning stage, in order to fully grasp the knowledge learned during the day, we use the COMAC 'Smart Learning Center' for self-study at night. Everyone competes against time and enters the system for learning. Our enthusiasm for learning moved COMAC teachers, and the interaction and communication became smoother. In the end, everyone successfully completed the C919 aircraft modification task with excellent results
Subsequently, Air China will work intensively and efficiently to complete ground support testing, route verification flights, on-site training, emergency evacuation procedure demonstrations, and new aircraft operation qualification certification, ensuring the smooth commercial operation of Air China's first C919.
Photo by Li Gongsheng from the Shanghai Stock Exchange News
The market share of large aircraft will further expand

In the selection of the C919 aircraft, Air China has carefully designed it. The aircraft is an extended range model with a spacious two cabin layout of 158 seats, including 8 business class seats and 150 economy class seats. It uses fully functional domestic seats, creates exclusive entertainment programs and safety instructions videos for the cabin, and provides customized in-flight supplies and other exclusive configurations to provide passengers with a better travel experience.
For a long time, Air China has been committed to supporting the development of domestic large aircraft industry. In July 2020, Air China's first ARJ21-700 aircraft was put into operation. As of now, Air China has introduced a total of 29 ARJ21 aircraft, with a cumulative safe flight time of over 70000 hours. In April 2024, Air China signed a purchase agreement with COMAC for 100 C919 aircraft, with plans to deliver them to Air China in batches from 2024 to 2031.
In the future, Air China will actively work with partners such as COMAC to strengthen the aircraft operation support system, fully leverage its route network advantages, strengthen market promotion, select high-quality routes, and promote the large-scale operation of C919
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