A Big Decision for Boeing's Next C.E.O.: Is It Time for a New Plane?
What was the primary reason Boeing decided to update the 737 rather than developing a new airplane over a decade ago?
The primary reason Boeing decided to update the 737 rather than developing a new airplane over a decade ago was to keep up with its main rival, Airbus1. Boeing executives believed that updating the 737, the company's most popular jet, would be a more efficient and cost-effective solution than creating an entirely new aircraft. This decision led to the development of the 737 Max, which aimed to compete with Airbus's A320neo. However, the 737 Max faced two fatal crashes in 2018 and 2019 and has since lost market share to Airbus in the global market for single-aisle planes.
How have the problems with the 737 Max affected Boeing's position in the global market for single-aisle airplanes?
The problems with the 737 Max have significantly impacted Boeing's position in the global market for single-aisle airplanes. The two fatal crashes in 2018 and 2019 led to the grounding of the aircraft for 20 months, causing a major setback for the company. As a result, Boeing has fallen behind its main rival, Airbus, in the single-aisle market, which it once dominated.
The 737 Max's issues have not only affected Boeing's reputation but also its financial performance. The company has reported billions of dollars in losses, and its order book has been impacted, with some airlines canceling orders for the troubled plane.
Furthermore, the ongoing scrutiny and investigations have forced Boeing to focus on fixing the 737 Max's problems, delaying the development of new aircraft and allowing Airbus to gain a significant competitive advantage in the single-aisle market. Boeing now faces the challenge of deciding when to invest in a new aircraft model and how to balance that investment with the need to restore confidence in its existing products.
What specific issues have arisen with the 737 Max that have increased scrutiny of the jet?
The Boeing 737 Max has faced several issues that have increased scrutiny of the jet. The most prominent of these issues are the two fatal crashes in 2018 and 2019, which resulted in the grounding of the aircraft for a significant period. These crashes were attributed to a software system called MCAS (Maneuvering Characteristics Augmentation System), which was designed to make the aircraft more fuel-efficient but led to the planes nosing downward in certain circumstances.
Additionally, in January 2024, a panel blew out of one of the planes during a flight, further raising concerns about the aircraft's safety and manufacturing quality. This incident prompted the FAA to temporarily ground some models of the plane and issue an emergency airworthiness directive requiring immediate inspections.
More recently, the FAA has identified an "unsafe condition" that could result in a "loss of control" of certain Boeing 737 Max jets due to "nonconforming" installation of spoiler control wires4. This issue has led to a proposal requiring operators to inspect the wings of about 207 737 Max airplanes in the U.S. for wiring damage within three years.
These issues, along with criticisms of the FAA's certification and oversight processes, have led to increased scrutiny of the Boeing 737 Max and its safety.