Emirates Babysit Boeing as FAA freeze Production

The days of Boeings dominance of the Skys are over, the iconic 747 that became the symbol of Boeings engineering brilliance are far behind them and are now left with the embarrassment of influential airlines sending their babysitters to the assembly line as they are no longer trusted to keep the public safe, "we trusted these people implicitly to get it done" said Emirates head Tim Clark. 

following the sudden failure of a fuselage panel of an Alaskan airlines 737 Max 9 aeroplane on the 5th January 2024 resulting in all of Boeings 'max fleet' being grounded for urgent safety checks nation wide creating a reputation disaster for the aviation relic.  Tim Clark raises the concerns of the public as well as the regulators provoking the question, can Boeing be trusted to put the safety of its passengers before its bottom line? it is clear to see that Boeings lust for profits through moves such as moving their production to South Carolina with their assembly being in Seattle echoed by Emirates as a clear catalyst for the disruption to the company's ability to maintain control over the quality and safety of their aircrafts. 

The irony of these decisions fall in the fact that this PR disaster has resulted in a 20% decrease in the value of Boeings stock since the beginning of the year which seems rather fitting given the fact that Boeing have also lost 20% of its market share to bitter rivals Airbus in the last 30 years who have managed to successful turn around the company share price since the COVID pandemic unlike Boeing who is still trying to find answers for their shareholders. 

The news of Emirates sending its engineers to Boeing will be one of embarrassment for those involved and will sound alarm bells for shareholders with Emirates being one of their major customers who recently completed a $52bn deal for a new fleet of aircrafts as well as the FAA announcing a freeze on Boeings production of its 'max' fleet with all involved anticipating a heavy impact to the company's financial targets for this quarter. 

Michael Jenson's work on 'Enlightened Value maximisation' is certainly an area that Boeing should pay more attention to. the demand in the modern economic climate for the relations of all stakeholders to be managed correctly has never been higher with a quote saying "we cannot maximise the long-term value of an organisation if we ignore or mistreat any important constituency". the model Creates a balance between all parties, Boeing prioritised their shareholders too much to improve their bottom line however in the process disregarded the demands of the public and regulators creating a humongous rift in the trust that was instilled in Boeing. 

Do you believe that Boeing can Come back from a monumental set back like this? I believe they will struggle, for now they may continue to produce aircrafts for some while longer however it is clear to me that seismic changes are required at Boeing if there is going to be any long term existence. Airlines are noticing the difference between Boeing and Airbus' quality. Safety is one thing that customers will never go cheap on and with the Alaskan Airlines flight already being worldwide news you can imagine that Boeing are on very thin ice when it comes to publics ability to put their lives in Boeings hands again.