The Boeing 737 has made multiple jokes, which has made global civil aviation passengers and investors feel a cold sweat.
According to Lu Tou, a CCTV news agency, on January 17 local time, the plane of US Secretary of State Antony Blinken suffered a "serious failure", so he stayed briefly in Davos, Switzerland. It is reported that the aircraft involved in the accident was a Boeing 737.
In less than a month, the Boeing 737 has made multiple jokes, not only startling the Federal Aviation Administration (FAA), but also causing global civil aviation passengers and investors to sweat.
The troublesome Boeing 737
On January 5th, an Alaska Airlines passenger plane crashed in the air shortly after takeoff and immediately made an emergency landing. It is reported that shortly after the aircraft took off, the emergency cabin door at the left center and rear suddenly fell off in the air, and oxygen masks on board automatically slid off. A child's clothing flew out of the plane from the hole, creating a very thrilling scene. Fortunately, no casualties were caused.
According to reports, the aircraft involved in the accident was a Boeing 737MAX 9 passenger aircraft that was delivered only eight weeks ago. Subsequently, the FAA announced that all MAX 9 models were grounded in the United States for investigation. After the incident, a federal official revealed that Alaska Airlines had previously discovered warning lights on at least three similar aircraft that may have related issues. United Airlines, on the other hand, stated that it had discovered loose bolts and "other installation issues" with the aircraft.
On January 17th, the National Transportation Safety Board (NTSB) and FAA reported preliminary investigations to the Federal Senate Commerce Committee, stating that 40 investigations had been completed within 5 days, but did not provide the latest information on when the aircraft was allowed to go around.
NTSB stated that it will investigate why the panel known as the "door stopper" was manufactured and installed by Spirit AeroSystems (a Boeing supplier) in Malaysia, as well as the issue of Boeing outsourcing a large amount of manufacturing operations.
Boeing's best-selling aircraft model, the Boeing 737 series, has been in constant trouble in recent years. In October 2018, an Indonesian Lion Air Boeing 737 MAX 8 aircraft crashed into the sea after taking off from Jakarta, killing all 189 people on board; In March 2019, an Ethiopian Airlines Boeing 737 MAX 8 crashed shortly after takeoff, resulting in the death of all passengers and crew members on board. Two major accidents resulted in the MAX 8 series being suspended globally for 18 months.
Time has passed, and the 737 series aircraft continue to cause trouble: In April 2023, due to one of Boeing's major suppliers installing the wrong bracket connecting the rear of the fuselage to the tail wing, the MAX 8 series had to be postponed; In December 2023, the FAA revealed that a bolt on the rudder control system of an overseas airline's 737 series aircraft actually did not have a nut.
Then came the accident on January 5 and the failure of Antony Blinken's plane on January 17, which finally forced Antony Blinken to bypass Brussels. Most of his attendants had to buy commercial flights to return home.
Critics do not buy it
Boeing has urgently carried out crisis public relations response. CEO Calhoun admitted in an interview on January 17th that the accident on Alaska Airlines was caused by a "door stopper" installation issue, and that "this was a mistake that should never have happened.". Boeing Civil Aircraft Group President Stan Deere also admitted that the company's production has not reached the level we need. On January 16th, Boeing announced that it would open its factories to customers and appointed retired US Navy Admiral Donald to lead a third-party review of its quality management system.
But as many critics have roast, even in the midst of a lot of trouble, Boeing still can't help but send out many harsh tones. On January 17th, during a congressional hearing, Calhoun made two promises: "We will learn from Spirit AeroSystems and strive to do our work better.". This commitment is almost identical to Boeing's tone after the two fatal MAX8 accidents mentioned earlier, as if strongly implying that "Boeing was already doing well.".
Critics are not satisfied with this. As of January 18th, passengers on Alaska Airlines flights have filed at least two class action claims in court, while experts and institutions have more to say.
Wells Fargo Bank recently downgraded Boeing's stock rating, citing concerns that the company may discover more issues during the pending audit period of the Federal Aviation Administration. The bank's analysts pointed out that the ongoing investigation into the Alaska aviation incident "will bring new troubles to this aircraft manufacturer, which has been facing quality control and engineering issues for many years.".
Former FAA safety officer Susie stated that according to convention, the "door stopper" should be designed larger than the hatch to be covered, so that the force of compressed air in the cabin will force the "door stopper" to press against the internal frame of the aircraft, and similar accidents can be completely avoided. "I don't understand why Boeing went in the opposite direction.".
Other experts have expressed that this design will increase costs, and Boeing has once again chosen a more hidden but cost-effective design - following the previous approach of using the MCAS system on the MAX 8.
Boeing's major customer, AeroCap, has warned that Boeing can no longer afford another accident and emphasized that the company must lower its financial goals and prioritize aircraft quality and safety.
The frequent accidents in the MAX series have indeed damaged Boeing's reputation and shaken the market's trust in the Boeing brand. Canadian scholars have stated that although the high monopoly in the civil aviation aircraft market reduces the market and customers' choices for aircraft, once the "cold cicada effect" is formed, airlines dare not take the risk of purchasing and using aircraft models that are feared and despised by passengers.
The volatility of Boeing's stock price seems to reflect investors' cautious attitude: since January 1, 2024, the stock has experienced a maximum cumulative decline of up to 20%, making it the worst performing company in the Dow Jones Industrial Average during the same period.
Is the life-saving straw here?
However, various signs indicate that Boeing is not willing to easily change its "financial priority" business strategy. It is not difficult to see from the wording of several executives that Boeing clearly lacks the sincerity of thorough rectification and is waiting for a "life-saving straw": such as the FAA's decision to resume operations, or the MAX large order flying across the air.
The former did not arrive, but the latter did indeed arrive gracefully: Indian budget airline Akasa Airlines announced an order for 150 Boeing 737 MAX narrow body aircraft. The ordered models are 737 MAX 10 and MAX 8-200, and are expected to be delivered within the next 8 years.
This is Boeing's first major order after the Alaska Airlines incident, and Boeing's delighted Chief Operating Officer, Pope, immediately issued a statement praising the Indian company for its timely assistance. The founder of Akasa Airlines praised the MAX series as the "highest safety standard in the global aviation industry" and other remarks, which also surprised Boeing, who was in a state of anxiety.
Boeing is clearly eager to bet on India: there are predictions that over the next 20 years, the South Asian region will purchase over 2000 new civil aviation aircraft, of which nearly 90% are single aisle aircraft of the same model as MAX.
In fact, the "life-saving straw for India" has not been extended to Boeing for the first time. In 2023, Air India announced that it would order 220 Boeing aircraft, which was hyped up by Boeing as the "largest civil aviation aircraft order in history".
However, many observers have pointed out that India's orders have a history of "water injection", and there are serious problems in transportation safety, aviation market management, and other aspects in India. Once the MAX series or other Boeing planes repeat the scenes of Lion Air and Ethiopian Airlines, Boeing will make things worse.
The reaction of the stock market can also indicate the problem: the 150 "Indian orders" only drove Boeing's stock price to rebound by 1% in the US stock market, which is far from enough to fill the big hole since the beginning of the year.
However, Boeing still seems to have a fearless attitude: the mainstream products of the horizontal and vertical single aisle mainline aircraft are only Boeing and Airbus, and Airbus has already placed orders for two years. They may believe that even if the MAX series is a bitter drink, many audiences still have to hold their noses and drink it.